Prudence Was Maximizing Her Utility Subject to Her Budget Constraint

question 27

True/False

Prudence was maximizing her utility subject to her budget constraint.Then prices changed.After the change, she is better off.Therefore the new bundle costs more at the old prices than the old bundle did.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which suggests that humans are motivated by a hierarchy of needs, starting from basic physiological needs to self-actualization.

Alderfer's ERG Theory

A motivational theory proposed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

McClelland's Acquired Needs Theory

A motivational theory that emphasizes the importance of three needs - achievement, affiliation, and power - in determining worker motivation.

Acquired Needs Theory

A psychological theory that suggests individuals are motivated by their desires for achievement, affiliation, and power, which they acquire over time based on their life experiences.