Which of the Following Statements Best Describes the Concept of Consumer

question 90

Multiple Choice

Which of the following statements best describes the concept of consumer surplus?

• A)"I paid $89 for a microwave oven last week.This week the same store is selling the same microwave oven for $69."
• B)"I sold my hard copy of Harry Potter and the Half-Blood Prince to a used book store for $10 even though I was willing to sell it for $5."
• C)"Target was having a sale on tube socks so I bought 5 pairs."
• D)"I was going to pay $200 for new sunglasses that I had seen at the Oakley store but I ended up paying only $140 for the same sunglasses."

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Definitions:

Production Rules

A hypothesized mental representation of procedural memory that specifies a goal to be achieved, one or more conditions that must be true in order for the rule to be applied, and one or more actions that result from the application of the rule.

Typicality Effect

The phenomenon whereby experimental participants are faster to respond to typical instances of a concept (e.g., robin for the concept “bird”) than to atypical instances (e.g., penguin for the concept “bird”).

Cognitive Economy

A principle of hierarchical semantic networks such that properties and facts about a node are stored at the highest level possible. For example, the fact “is alive” would be stored with the node for “animal” rather than stored with each node under animal such as “dog” and “cat.”

Encoding Specificity

A principle of retrieval asserted by Tulving. At the time material is first put into long-term memory, it is encoded in a particular way, depending on the context present at the time. At the time of recall, the person is at a great advantage if the same contextually supplied information available at encoding is once again available.