When You Chose to Buy the Second Cup of Coffee

question 346

Multiple Choice

When you chose to buy the second cup of coffee instead of the third bagel, which of the following is necessarily CORRECT?

• A) The second coffee will give you higher marginal utility.
• B) The second coffee is cheaper than the third bagel.
• C) The marginal utility per dollar from the third bagel is less than the marginal utility per dollar from the second coffee.
• D) Both answers A and C are correct.

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, particularly on the grounds of race, age, or sex.

Robber's Cave Experiment

A social psychology experiment that demonstrated how conflict can be induced and reduced among groups through cooperation toward shared goals.

Us-Them Hostility

Refers to feelings of animosity or opposition towards an out-group, often stemming from strong in-group identification and perceived differences or threats.

Interdependence

A relationship between two or more entities where each affects and relies on the other, often used in reference to ecological or economic systems.