Haley Is Looking at Bill

question 23

Multiple Choice

Haley is looking at Bill. The two retinal images of Bill in Haley's eyes are nearly identical. This suggests that

• A) Bill is very close to Haley.
• B) Bill is very far from Haley.
• C) Haley will have difficulty judging how far Bill is from her.
• D) Haley can see Bill very clearly.

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Definitions:

Optimal Choice

The most efficient and effective decision or selection made from among various alternatives, based on the criteria of maximizing utility or benefit.

Budget Constraint

The restriction on the assortment of goods and services a consumer is able to purchase, determined by their income and the costs of those items.

Interest Rate on Savings

The percentage yield paid by financial institutions to deposit account holders on the balances in their savings accounts.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one product for another.