If There Are Only Two Goods in the Economy, Chocolate

question 81

Multiple Choice

If there are only two goods in the economy, chocolate and peanut butter, and the price of chocolate falls, the new utility-maximizing bundle for a typical consumer would entail consuming _____ peanut butter and ______ chocolate.

• A) less; more
• B) more; less
• C) more; more
• D) less; less

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Definitions:

Nonverbal Indicator

A form of communication without the use of spoken language, conveyed through body language, gestures, facial expressions, and other physical cues.

Kinesics

The study of body motion or body behavior as a form of non-verbal communication.

Proxemics

The examination of how humans utilize space and the impact that the density of a population has on behavior, communication, and the way people interact with one another.

Izard's Theory

Carroll Izard's Differential Emotions Theory suggests that emotions are innate and that different emotions are linked with specific facial expressions.