Use the Following to Answer Questions

question 365

Multiple Choice

Use the following to answer questions:
Scenario: Music Downloads and Streamed Movies
Phillip has an income of $300 per month, which he uses to purchase music downloads (MD) and streamed movies (SM) . Each music download costs $1 and each streamed movie costs $5.
-(Scenario: Music Downloads and Streamed Movies) Read the scenario Music Downloads and Streamed Movies. Suppose Phillip's income falls by half, and the prices for both music downloads and streamed movies also fall by half. As a result of this, Phillip:

• A) can buy fewer music downloads if he spends all of his income on music downloads.
• B) can buy fewer streamed movies if he spends all of his income on streamed movies.
• C) will not notice any change in his budget line.
• D) will undergo a parallel shift out of his budget line.

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Definitions:

Cognitive Factors

Elements related to mental processes such as perception, memory, language, and problem-solving.

External Environment

All outside factors and influences that impact the operation, success, and decision-making processes of an organization or individual.

Bandura

A psychologist known for his work on social learning theory, emphasizing the role of observational learning, self-efficacy, and reciprocal determinism in behavior.

Behavioral Assessment

A method used in psychology to observe, describe, explain, and predict behavior through a variety of techniques, including interviews and direct observation.