An Optimising Consumer Will Select a Consumption Bundle in Which

question 93

Multiple Choice

An optimising consumer will select a consumption bundle in which the:

• A)marginal rate of substitution is equal to income
• B)marginal rate of substitution is equal to the relative price
• C)ratio of expenditure shares equals the marginal rate of substitution
• D)utility exceeds price

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Definitions:

Functionalism

A philosophical approach emphasizing the roles or functions of consciousness and mental processes in adapting to the environment.

William James

An influential American psychologist and philosopher, known for his contributions to pragmatic philosophy and psychology, including theories of self and emotion.

Chemistry

The branch of science concerned with the substances of which matter is composed, their properties, reactions, and the use of such reactions to form new substances.

Cognitive Processes

The mental activities associated with thinking, knowing, remembering, and communicating information.