Figure 5-13 -If a Consumer Is Currently at Point E on Figure

question 106

Multiple Choice

Figure 5-13
-If a consumer is currently at Point E on Figure 5-13, she will

• A)choose to move to the combination at C to make herself better off.
• B)choose to move to the combination at D to make herself better off.
• C)reduce expenditures to make herself better off.
• D)stay at Point E, since that combination is the cheapest alternative to be on indifference curve U1.

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Definitions:

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the influence of situational factors when explaining others' behaviors.

East Asians

People originating from countries in the eastern part of Asia, usually including China, Japan, and Korea, among others.

Americans

Residents or citizens of the United States of America.

Physically Attractive People

Individuals perceived to have physical features that are aesthetically pleasing or beautiful to others.