If a Consumer Chooses a Combination of Goods That Are

question 368

Multiple Choice

If a consumer chooses a combination of goods that are inside of her budget line, than

• A) the consumer is maximizing her satisfaction.
• B) the consumer is spending more than her current income.
• C) the consumer has a constant marginal rate of substitution for the two goods.
• D) the consumer is not maximizing her satisfaction.

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Definitions:

Social Loafing

Describes the phenomenon where individuals exert less effort to achieve a goal when working in a group compared to when working alone.

Counteract

To act against something in order to reduce its force or neutralize its effect.

Group Cohesiveness

The extent to which members of a group are bonded together, resulting in a strong sense of identity, commitment, and loyalty toward the group.

Cohesiveness

The degree to which members of a group or team are united toward common goals and exhibit loyalty to the group.