Assume That a Consumer Has a Given Budget or Income

question 33

Multiple Choice

Assume that a consumer has a given budget or income of $12 and that she can buy only two goods, apples or bananas. The price of an apple is $2.00 and the price of a banana is $1.00. This means that, in order to buy six bananas, this consumer must forgo

• A)3 apples.
• B)0.8 apples.
• C)6 apples.
• D)2 apples.

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Definitions:

Experimental Research

A scientific method involving the manipulation of variables to determine their causal effects on certain outcomes.

Informed Consent

A process ensuring participants are fully aware of all aspects of a procedure including risks, benefits, and alternatives before agreeing to partake.

Sample

A subset of a population selected for measurement, observation, or questioning to provide statistical information about the whole.

Evolutionary Psychology

A theoretical approach in psychology that applies evolutionary biology concepts to understand human behavior and mental processes.