According to the Relative Price Rule, the Optimal Consumption Bundle

question 89

Multiple Choice

According to the relative price rule, the optimal consumption bundle between hot dogs and beer takes place when the ________ rate of substitution is their relative price.

• A)total; equal to
• B)marginal; equal to
• C)marginal; higher
• D)than total; lower than

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Definitions:

Out-group Bias

A cognitive bias that leads individuals to favor their own group over others, often resulting in prejudice and discrimination against the out-group.

Scapegoating

Blaming a person or group for problems or negative outcomes, often as a way of distracting from the real causes or issues.

Milgram's Obedience Study

An experiment conducted by Stanley Milgram in the 1960s to study the extent to which individuals would follow orders from an authority figure, even when those orders could harm another person.

Serious Harm

A significant or profound negative impact on an individual's physical, emotional, or psychological well-being.