In Introducing the Opportunity Cost of Time into the Theory

question 223

Multiple Choice

In introducing the opportunity cost of time into the theory of consumer behavior, we find that, all else equal,

• A) one should consume less of time-intensive goods.
• B) one should consume more of time-intensive goods.
• C) the consumer's equilibrium position is not altered.
• D) the marginal utility derived from each product must be multiplied by consumption time in determining equilibrium.

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Definitions:

Mental Representations

Internal cognitive symbols, structures, or maps of the world that individuals use to understand and interact with their environment.

Subordinate-level

A specific, detailed level within a categorization hierarchy, often denoting a particular member of a larger group.

Basic-level

Refers to the most natural and preferred categorical level at which people classify and label objects, which balances specificity and generalization.

Superordinate-level

A term used in cognitive psychology to refer to a higher, more abstract category or level of classification.