When a consumer is purchasing the best combination of two goods, X and Y, subject to a budget constraint, we say that the consumer is at an optimal choice point. A graph of an optimal choice point shows that it occurs
a. along the highest indifference curve.
b. along the lowest budget constraint.
c. where the indifference curve is tangent to the budget constraint.
d. All of the above are correct.
c
You might also like to view...
Market equilibrium is the intersection of the demand curve and the social cost curve
a. True b. False Indicate whether the statement is true or false
Changes in aggregate demand
A) could be caused by changes in the spending decisions of foreigners. B) are unlikely to change quickly in response to economic events. C) are primarily based on changes in firms' abilities to produce products. D) are not affected by changes in government policies.
The Board of Governors of the Federal Reserve System is
A. appointed by the Congress. B. appointed by the President with approval of the U.S. Senate. C. elected by members of the American Banking Association. D. elected by the public.
Protection is often temporary to help infant industries.
Answer the following statement true (T) or false (F)