Suppose That a Consumer Purchases Just Two Goods, X and Y

question 266

Multiple Choice

Suppose that a consumer purchases just two goods, X and Y. The Y-intercept of the budget line in this case would indicate the

• A) maximum dollar amount of budget that the consumer has for good Y.
• B) price that the consumer has to pay for each unit of good Y.
• C) maximum quantity of good Y that the consumer could buy with a given budget.
• D) quantity of good Y that the consumer would want to buy.

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Definitions:

M'Naghten Rule

A legal standard used to determine whether a defendant was sane at the time of committing a crime, focusing on their ability to understand right from wrong.

Insanity

A legal term for a mental disorder so severe that it prevents a person from understanding the difference between right and wrong or from being able to control their actions.

Systematic Desensitization

A behavioral therapy technique used to help individuals overcome phobias and anxieties by gradually exposing them to the feared object or context without any danger.

Phobia

An intense, irrational fear of a specific object, situation, or activity that leads to significant anxiety and avoidance behaviors.