Memories of Products Are Often Replaced (Forgotten) as We Learn

question 20

Multiple Choice

Memories of products are often replaced (forgotten) as we learn additional information. This displacement of information is called ________.

• A) the highlighting effect
• B) interference
• C) decay
• D) generalization

---

Definitions:

Substitution Effect

The economic understanding that as prices rise, or income decreases, consumers will replace more expensive items with less costly alternatives.

Output Effect

The impact on total production and economic output resulting from changes in price levels, influencing the quantity supplied or demanded.

Marginal Physical Product

The additional output that can be produced by adding one more unit of a specific input, while holding other inputs constant.

Additional Output

The extra amount of production generated as a result of increasing inputs or improving efficiency.