The Substitution Effect Influences Food Purchases Because When the Price

question 10

Multiple Choice

The substitution effect influences food purchases because when the price of a certain food rises,other things remaining the same,________.Consumers ________.

• A)the relative price of all food rises;purchase less of the food that has experienced the price increase and more of all other foods
• B)its relative price does not change because most likely the prices of all other foods will also rise;continue to purchase all foods,but in smaller quantities
• C)its relative price rises;purchase more of a different food that is less expensive
• D)the relative price of all food rises;continue to purchase all foods,but in smaller quantities
• E)its relative price rises;purchase less of all foods

Explore the special role of net exports and business cycles in economic policy decision-making.

Discuss the effectiveness and obstacles of using monetary and fiscal policy to address inflation and recession.

Recognize the potential effects of far-sighted consumer behavior on policy effectiveness.

Understand the concept of political business cycles and the role of monetary policy within these cycles.

---

Definitions:

Hierarchical Network Model

A cognitive psychology theory proposing that mental categories are organized in a hierarchical manner, where broader categories encompass more specific ones.

Collins

Commonly refers to Allan Collins, a cognitive scientist known for his work in educational technology and the development of learning theories, including the Cognitive Apprenticeship model.

ACT

ACT stands for Acceptance and Commitment Therapy, a form of psychotherapy that encourages individuals to embrace their thoughts and feelings rather than fighting or feeling guilty for them.

Semantic Memory

A memory system proposed by Tulving that is thought to hold memories of general knowledge.