Use the Following to Answer Questions

question 188

Multiple Choice

Use the following to answer questions:
Figure: Consumer Equilibrium II
-(Figure: Consumer Equilibrium II) Look at the figure Consumer Equilibrium II. The HIGHEST level of total utility is associated with point _____ on indifference curve _____.

• A) H; C
• B) I; B
• C) G; B
• D) J; A

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Definitions:

Discounting Principle

A psychological concept suggesting that when there are multiple perceived causes for behaviour, the importance of any single cause is diminished.

False Consensus Effect

The cognitive bias where a person overestimates the extent to which their beliefs, values, or behaviors are normal and shared by others.

Theory of Mind

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others and to understand that others have beliefs and perspectives different from one's own.

Fundamental Attribution Error

The inclination to place excessive focus on personal characteristics while undervaluing the impact of environmental conditions in interpreting the actions of others.