When Quantities of Two Goods Belong to the Same Indifference

question 101

Multiple Choice

When quantities of two goods belong to the same indifference curve, which of the following is true ?

• A) The combinations of the two goods along the indifference curve yield the same total utility.
• B) Prices of the two goods are equal.
• C) Marginal utilities of both goods are equal.
• D) The total utility of all combinations above the curve equal zero.

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Definitions:

Executive Functions

Cognitive processes that regulate an individual's ability to organize thoughts and activities, prioritize tasks, manage time efficiently, and make decisions.

Inhibitory Control

The cognitive ability to suppress responses or behaviors that are inappropriate or irrelevant to achieving a goal.

Brain Activity

Refers to the electrical and chemical processes occurring within the brain that enable thought, perception, and coordination of bodily functions.

Schaie's View

Schaie's view refers to the developmental model of cognitive changes over the lifespan proposed by psychologist K. Warner Schaie, emphasizing the sequential stages of cognitive development from childhood to old age.