If a consumer chooses a combination of goods that are inside of her budget line, than
A. the consumer is spending more than her current income.
B. the consumer is maximizing her satisfaction.
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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During the 1990s, Japan experienced periods of deflation and very low nominal interest rates, approaching zero percent. Why would lenders of money agree to a nominal interest rate of almost zero?
What will be an ideal response?
Futures contracts are marked-to-market
A) every day. B) every week. C) every month. D) every quarter.
The USDA threshold income level was originally based on the cost of
A. basic clothing. B. a nutritionally adequate food plan. C. housing. D. transportation.
An oligopoly with a dominant price leader will produce a level of output below that which would prevail under ________ and above that which a ________ would choose in the same industry.
A. cartel; competitive industry B. competition; monopolist C. monopoly; cartel D. monopoly; competitive industry