Isobel Consumes Positive Quantities of Both Jam and Juice

question 15

Multiple Choice

Isobel consumes positive quantities of both jam and juice.The price of jam is 5 cents per unit and the price of juice is 10 cents per unit.Her marginal utility of jam is 10 and her marginal utility of juice is 5.

• A)Without changing her total expenditures, she could increase her utility by consuming more jam and less juice.
• B)Without changing her total expenditures, she could increase her utility by consuming more juice and less jam.
• C)Without changing her total expenditures on jam and juice, she could not increase her utility.
• D)She should spend more money on both jam and juice.
• E)We can't tell whether any of the other statements are true or false without knowing the quantities she consumes.

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Definitions:

Internal Locus

The belief that one's actions are the primary determinants of outcomes and events in their lives.

Factor Analysis

A statistical approach that explains the variance among observed, correlated variables through a smaller number of unseen variables, known as factors.

Reciprocal Determinism

A concept in psychology that suggests individual behavior, personal factors, and the environment all interact and influence each other.

Emotional Stability

Refers to the ability to remain calm and composed, especially in stressful situations, indicating resilience and a well-adjusted personality.