For Two Goods, a and B, the Rational Spending Rule

question 62

Multiple Choice

For two goods, A and B, the rational spending rule is expressed as:

• A)MU_A = MU_B.
• B)MU_A * MU_B = P_A * P_B.
• C)(MU_A/P_B) = (MU_B/P_A).
• D)(MU_A/P_A) = (MU_B/P_B).

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Definitions:

Bell-Shaped Curve

A graphical representation of data that depicts a normal distribution, showing how a variable is spread across a population in a shape that resembles a bell.

Phenotypic Variation

The observable differences in appearance, function, and behavior among individuals of the same species due to genetic and environmental factors.

Monohybrid Cross

Cross between two individuals identically heterozygous for one gene; for example Aa × Aa.

Purebred

An animal bred from parents of the same breed or variety, maintaining specific desired traits over many generations.