Information-Processing Theory Emphasizes

question 87

Multiple Choice

Information-processing theory emphasizes

• A) the relationship between cognition and personality.
• B) cognitive processes related to the nervous system.
• C) cognitive processes that occur between the input of a stimulus and the response to that stimulus.
• D) the effects of rewards on cognitive processes.

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Definitions:

Allocative Efficiency

Refers to a market situation where resources are apportioned in the most efficient manner, allowing for the optimal combination of goods and services production to meet consumer preferences.

Consumer Surplus

The variance between the aggregate sum consumers are prepared and capable of spending for a product or service and the aggregate sum they end up paying.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive following trade.

Marginal Benefit

The boost in pleasure or utility a person gets from purchasing one more unit of a product or service.