"Every point on a budget line has an indifference curve passing through it." Explain whether the previous statement is correct or not
What will be an ideal response?
The statement is correct. The consumer has a preference map that consists of an infinite number of indifference curves, one through every possible consumption combination. So there is an indifference curve passing through every point on a budget line.
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An unusually warm winter shifts the
A) supply curve of gloves rightward. B) supply curve of gloves leftward. C) demand curve for gloves rightward. D) demand curve for gloves leftward.
Ceteris paribus, in a closed economy, if consumers become more pessimistic ________
A) autonomous consumption will fall B) investment will fall C) saving will increase D) all of the above E) none of the above
Problems in forecasting include:
A. estimates becoming more reliable the further you forecast into the future B. cyclical variation C. specification error D. both b and c E. all of the above
Andrew is willing to pay $50,000 for a college education, yet the tuition cost at the college to which he was accepted is $75,000. Under what condition would it be efficient for the government to pay for the last $25,000 of Andrew's education?
What will be an ideal response?