Smith Is Given a Voucher That Can Be Spent Only

question 17

Multiple Choice

Smith is given a voucher that can be spent only on textbooks. Smith has a budget constraint with textbooks on the horizontal axis and everything else on the vertical axis. Suppose everything else is comprised only of normal goods. Then:

• A) the voucher will result in Smith increasing his spending on textbooks by more than the amount of the voucher
• B) Smith will most likely end up spending some more money on everything else after receiving the voucher
• C) Smith will not buy any textbooks because he can use the voucher for all other goods
• D) Smith will most likely end up spending less money on everything else after receiving the voucher

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Definitions:

Memory

The cognitive process of encoding, storing, and retrieving information, which is vital for learning and the formation of personal identity.

Typical 3-Month-Old

Refers to the common developmental milestones of a 3-month-old infant, such as smiling, cooing, and beginning to reach for objects.

Imitative Behavior

The act of mimicking or replicating someone else's actions, often a mechanism for learning or social bonding.

Infant Intelligence

The capacity of infants to learn, understand, and interact with their environment.