In the Diagram, Suppose the Consumer Is Currently Exhausting His

question 348

Multiple Choice

In the diagram, suppose the consumer is currently exhausting his or her income at a point where the marginal rate of substitution of apples for oranges is greater than ⁵/₄. That is, MUA/MU0>⁵/₄. To maximize utility, the consumer should move from point

• A)a to e.
• B)b to e.
• C)c to e.
• D)d to e.

---

Definitions:

Thalamus

The brain’s sensory switchboard, located on top of the brainstem; it directs messages to the sensory receiving areas in the cortex and transmits replies to the cerebellum and medulla.

Senses

Biological systems used by organisms to detect and process sensory information from the environment, including sight, hearing, touch, taste, and smell.

Thalamus

A brain structure that acts as a relay station for sensory and motor signals to the cerebral cortex, excluding smell.

Corpus Callosum

The large band of neural fibers connecting the two brain hemispheres and carrying messages between them.