The Economic Model of Consumer Behavior Predicts That

question 260

Multiple Choice

The economic model of consumer behavior predicts that

• A)consumers will try to earn as much income as they can over their lifetimes.
• B)consumers will choose to buy the combination of goods and services that make them as well off as possible from those combinations that their budgets allow them to buy.
• C)consumers will try to accumulate as many goods and services as they can before they die.
• D)consumers divide their time between consumption and leisure activities in order to maximize social welfare.

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Definitions:

Processing Units

Components within a computer that execute instructions from software applications.

Three-box Model

A model of memory proposed by Richard Atkinson and Richard Shiffrin that includes three stores: sensory memory, short-term memory, and long-term memory.

Sensory Register

The initial stage of memory, where sensory information is stored for a very brief period before it is processed or discarded.

Incoming Information

Data or signals received by a system or individual for processing or action.