If an Individual Has a Constant MRS of Shoes for Sneakers

question 11

Multiple Choice

If an individual has a constant MRS of shoes for sneakers of 3/4 (that is,he or she is always willing to give up 3 pairs of sneakers to get 4 pairs of shoes) then,if sneakers and shoes are equally costly,he or she will

• A)buy only sneakers.
• B)buy only shoes.
• C)spend his or her income equally on sneakers and shoes.
• D)wear sneakers only 3/4 of the time.

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Definitions:

Human Capital

The collective skills, knowledge, and expertise that employees contribute to an organization's value.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Extrinsic Benefits

Advantages or rewards received from an activity that are external to the activity itself, such as money, grades, or recognition.

Self-Efficacy

An individual's belief in their own capability to execute behaviors necessary to produce specific performance attainments.