If a consumer chooses a combination of goods that are inside of her budget line, than
A) the consumer is maximizing her satisfaction.
B) the consumer is spending more than her current income.
C) the consumer has a constant marginal rate of substitution for the two goods.
D) the consumer is not maximizing her satisfaction.
Answer: D
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Indicate whether the statement is true or false
Unequal incomes arise from
a. discrimination. b. luck. c. different schooling. d. all of the above factors.
In the old Chesapeake colonies, tobacco leaves were used to make payments and to pay fines and taxes. Which of the following problems would it be most likely to have had as a form commodity money?
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