The Marginal Rate of Substitution Is the

question 26

Multiple Choice

The marginal rate of substitution is the

• A) rate at which the consumer can exchange one good for the other.
• B) change in the quantity of one good that just offsets a one-unit change in the consumption of another good such that the total satisfaction remains constant.
• C) change in the quantity of one good that changes the utility received by one unit.
• D) same thing as the marginal utility of a good.

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Definitions:

Instinct

An innate, typically fixed pattern of behavior in animals in response to certain stimuli.

Defense Mechanism

Psychological strategies brought into play by individuals, unconsciously, to protect themselves from anxiety or to provide a refuge from a situation with which they cannot currently cope.

Moral Basis

The foundational principles or beliefs that guide judgments about what is right or wrong, ethical or unethical.

Repression

A psychological defense mechanism where distressing thoughts, memories, or urges are unconsciously pushed out of the conscious mind.