When Consumers Maximize Utility, They Try to Obtain

question 425

Multiple Choice

When consumers maximize utility, they try to obtain:

• A)a point of intersection between indifference curves.
• B)any intersection of the budget line and the indifference curve.
• C)the highest indifference curve that touches their budget constraint.
• D)the lowest indifference curve that touches their budget constraint.

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Definitions:

Underextension

A cognitive error in language acquisition where a child applies a word in a narrower way than it is usually applied, failing to include objects or events that are part of the category.

Implicit Memory

The type of memory that allows people to perform tasks without consciously thinking about them.

Explicit Memory

A type of long-term memory involving the conscious recollection of information such as facts and events.

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, from birth to about age 2, where infants explore the world through their senses and motor activities.