If Mr Smith Thinks the Last Dollar Spent on Shirts Yields

question 14

Multiple Choice

If Mr. Smith thinks the last dollar spent on shirts yields less satisfaction than the last dollar spent on cola, and Mr. Smith is a utility-maximizing consumer, he should:

• A) decrease his spending on cola.
• B) decrease his spending on cola and increase his spending on shirts.
• C) increase his spending on shirts.
• D) increase his spending on cola and decrease his spending on shirts.

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Definitions:

Stanford-Binet Intelligence Scales

A standardized test designed to measure human intelligence and cognitive abilities in both children and adults.

Fluid Intelligence

The capacity to think logically and solve new problems without relying on pre-existing knowledge and experience.

Information Processing

The cognitive approach that focuses on how people encode, store, and retrieve information, akin to the operations of a computer.

Triarchic Intelligence

A model proposed by psychologist Robert Sternberg that divides intelligence into three components: analytical, creative, and practical intelligence.