If a Consumer Reallocates His or Her Spending Away from Good

question 4

Multiple Choice

If a consumer reallocates his or her spending away from good A and towards good B, then the consumer's total utility will increase if:

• A)MU_A/P_A > MU_B/P_B
• B)MU_A/P_A < MU_B/P_B
• C)MU_A/P_A > 0 and MU_B/P_B > 0
• D)MU_A/P_A < 0 and MU_B/P_B < 0

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Definitions:

Performance Evaluations

Systematic assessments of an employee's job performance and overall contribution to a company.

Punishment

A method used to reduce undesirable behavior by applying a negative consequence or removing a positive stimulus following the behavior.

Extinction

In the context of behavioral psychology, it refers to the gradual weakening and eventual disappearance of a conditioned response when it is no longer reinforced.

Behaviorist Approach

A learning theory that focuses on observable behaviors and the ways they're learned, emphasizing the importance of external stimuli and reinforcement.