Your Textbook Describes the Classic Conservation Task in Which a Five-Year-Old

question 251

Multiple Choice

Your textbook describes the classic conservation task in which a five-year-old child observes equal amounts of liquid in two identical short, wide containers. The child watches as liquid is poured from one short, wide container into a tall, thin container, and is then asked which container holds more water. How does a typical five-year-old respond?

• A) "The tall, thin container has more water."
• B) "The short, wide container has more water."
• C) "Both containers have the same amount of water."
• D) "I have to go to the bathroom."

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Definitions:

Income Effect

The dynamics of income change in a person or an economy, and its role in altering the demand pattern for goods and services.

Substitution Effect

The change in consumption patterns due to a change in relative prices, prompting consumers to substitute a product that has become relatively cheaper for one that has become relatively more expensive.

Marginal Rate

A rate that indicates the change in a variable (such as cost, revenue, or tax) as its underlying factor changes incrementally.

Substitution

The action of replacing one good or service with another based on changes in relative prices, incomes, or preferences.