Refer to the Graph

question 309

Multiple Choice

Refer to the graph. The shift of the budget line from AB to CD is consistent with

• A)a decrease in the consumer's money income.
• B)a decrease in the prices of both Goods 1 and 2.
• C)an increase in the prices of both Goods 1 and 2.
• D)a decrease in the price of Good 1, and an increase in the price of Good 2.

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Definitions:

Latent Learning

The process of learning that occurs without any obvious reinforcement of the behavior or associations that are learned.

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The drive to engage in an activity for its own sake, deriving pleasure and satisfaction from the activity itself rather than from external rewards or pressures.

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