Exhibit 6A-3 Consumer Equilibrium

question 169

Multiple Choice

Exhibit 6A-3 Consumer equilibrium
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Given the budget line and indifference curves shown in Exhibit 6A-3, at point Z:

• A) P_x exceeds P_y.
• B) MU_x = MU_y.
• C) MRS = P_x / P_y.
• D) MRS = P_y / P_x.

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Definitions:

Encoding Specificity Principle

The idea that cues and contexts specific to a particular memory will be most effective in helping us recall it.

State-Dependent Memory

The theory that information learned in a particular state of mind (e.g., happy, sad, intoxicated) is more easily recalled when in the same state.

Serial Position Effect

Our tendency to recall best the last (recency effect) and first (primacy effect) items in a list.

Cerebellum

The “little brain” at the rear of the brainstem; functions include processing sensory input, coordinating movement output and balance, and enabling nonverbal learning and memory.