Suppose Jamie Can Choose Between Consuming Two Goods

question 131

Multiple Choice

Suppose Jamie can choose between consuming two goods. If we observe that Jamie's budget constraint has moved outward, then we know for certain that

• A)her income must have increased.
• B)she will be indifferent between the two goods.
• C)the price of one or both of the goods must have decreased.
• D)she can reach a higher indifference curve.

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Definitions:

Cognition

The act of coming to know and understand through the mechanisms of thought, experiences, and sensory input.

Unconditioned Responses

Natural, unlearned reactions to an unconditioned stimulus, such as reflexes or instinctual actions.

Learning

The acquisition of knowledge, skills, behaviors, or attitudes through experience, study, or teaching, leading to a permanent change in behavior or understanding.

Introspection

The examination of one's own conscious thoughts and feelings, often used in the context of psychology to analyze individual mental and emotional processes.