Which of the Following Statements Is True

question 359

Multiple Choice

Which of the following statements is true?

• A)Calculating the marginal rate of substitution assumes that prices remain unchanged.
• B)Calculating the marginal rate of substitution assumes that money income remains unchanged.
• C)Calculating the marginal rate of substitution assumes that satisfaction remains unchanged.
• D)Calculating the marginal rate of substitution assumes that the quantities of both goods remain unchanged.

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Definitions:

Homeostasis

The process by which living organisms regulate their internal environment to maintain a stable, constant condition in response to external changes.

Internal Environment

refers to the conditions, processes, and elements within an organization that influence its activities and choices.

Hierarchy of Motives

A structure that ranks human needs and motivations in order of importance, from basic physiological needs to self-actualization.

Maslow

Refers to Abraham Maslow, a psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.