Economists Normally

question 155

Multiple Choice

Economists normally

• A) do not try to explain people's tastes,but they do try to explain what happens when tastes change.
• B) believe that they must be able to explain people's tastes in order to explain what happens when tastes change.
• C) do not believe that people's tastes determine demand and therefore they ignore the subject of tastes.
• D) incorporate tastes into economic models only to the extent that tastes determine whether pairs of goods are substitutes or complements.

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Definitions:

Yerkes-Dodson Law

The psychological principle stating that performance is best under conditions of moderate arousal rather than either low or high arousal.

Moderate Arousal

Refers to an optimal level of alertness or physical and mental activation at which performance on a task is best.

Cholecystokinin (CCK)

a hormone that is released by the intestines in response to eating certain foods and stimulates the digestion of fat and protein.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driving individuals to pursue and achieve their objectives.