Which One of the Following Is True at the Best

question 26

Multiple Choice

Which one of the following is true at the best affordable choice of a consumer?

• A)Marginal rate of substitution exceeds the slope of the budget line.
• B)Marginal rate of substitution is less than the relative price of the good measured on the x-axis.
• C)All income is spent.
• D)The consumption choice is outside the budget line.
• E)Other consumption points along the consumer's budget line lie on higher indifference curves.

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Definitions:

Rude

Exhibiting or having a discourteous or impolite demeanor or behavior, often characterized by a lack of respect for others.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response, typically occurring when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Operant Conditioning

An educational method where behavior is altered by the application of rewards or penalties.

Reinforced

In behavioral psychology, refers to any stimulus which strengthens or increases the probability of a specific response.