Faced with Two Goods to Buy, Good 1 and Good

question 11

Multiple Choice

Faced with two goods to buy, good 1 and good 2, a utility-maximizing individual will buy according to which of the following statements?

• A) price of good 1 = price of good 2
• B) MU of good 1 = MU of good 2
• C) price of good 1 divided by MU of good 2 = price of good 2 divided by MU of good 1
• D) MU of good 1 divided by price of good 1 = MU of good 2 divided by price of good 2

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Definitions:

Ingroup Vs Outgroup

Ingroup vs outgroup refers to the social categorization of people into groups based on perceived similarities or differences, where "ingroup" represents those similar to oneself and "outgroup" those who are not.

Actor-Observer Bias

The tendency to attribute one's own actions to external causes while attributing other people's behaviors to their internal characteristics.

Internal Attributions

The process of attributing the cause of a person's behavior to internal or personal factors, rather than external situational factors.

External Attributions

The process of explaining someone's behavior by referring to situational or environmental factors.