Angie Is Maximizing Total Utility While Consuming Food and Clothing

question 451

Multiple Choice

Angie is maximizing total utility while consuming food and clothing.Her marginal utility from food is 50,and her marginal utility from clothing is 25.If clothing is priced at $10 per unit,the price of food per unit must be

• A) $2.
• B) $2.50.
• C) $5.
• D) $20.

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Definitions:

Cross-Cultural Psychology

Psychological research and theorizing that attempts to account for the psychological differences between and within different cultural groups.

Cultural Practices

The customs, rituals, and behaviors that are shared and practiced by members of a particular cultural or social group.

Outgroup Homogeneity Bias

The sociopsychological phenomenon by which members of a group to which one does not belong seem more alike than do members of a group to which one does belong.

In-Group Favoritism Bias

The tendency for individuals to give preferential treatment and express more positive attitudes towards members of their own group as opposed to those of out-groups.