What Is the Maximum Amount of Good Y That Can

question 2

Multiple Choice

What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and P_x = $5,P_y = $10,X = 20,and M = 500?

• A) 40
• B) 25
• C) 50
• D) 75

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Definitions:

Pleasure Principle

A theory in psychoanalytic psychology proposing that people seek pleasure and avoid pain to satisfy biological and psychological needs.

Reality Principle

A psychoanalytic concept where the ego seeks to satisfy the id’s desires in realistic and socially appropriate ways.

Ego

In psychoanalytic theory, the part of the personality that mediates between the demands of the id, superego, and reality.

Superego

Part of Freud's psychoanalytic theory, representing the moral component of the mind, comprising the conscience and ideal self.