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:

Attitude

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor, shaping how we perceive and interact with the world.

Fundamental Attribution Error

The tendency to attribute others' behaviors to their character rather than to external factors.

Cognitive Dissonance

The discomfort in one's psyche caused by the coexistence of several contradictory beliefs, ideas, or values.

Attribution

Attribution involves the process of explaining the causes or reasons behind behaviors or events, including the inference of personal traits or external circumstances.