An Optimizing Consumer Will Select the Consumption Bundle in Which

question 139

Multiple Choice

An optimizing consumer will select the consumption bundle in which the

• A)ratio of total utilities is equal to the relative price ratio.
• B)ratio of income to price equals the marginal rate of substitution.
• C)marginal rate of substitution is equal to the relative price ratio of the goods.
• D)marginal rate of substitution is equal to marginal utility.

---

Definitions:

Prefrontal Cortex

A part of the brain located in the frontal lobe, associated with decision making, social behavior, personality, and cognitive planning.

Confabulations

Involves the creation of false memories without the intention to deceive, often occurring in patients with certain brain injuries or diseases.

Anterograde Amnesia

A condition where a person is unable to form new memories following a traumatic event, though long-term memories from before the event may remain intact.

Retrograde Amnesia

A loss of memory-access to events that occurred, or information that was learned, before an injury or the onset of a disease.