An interior solution to a consumer's utility maximization problem implies
A) consuming a positive amount of one good and a negative amount of the other good.
B) consuming negative amounts of all goods.
C) consuming less than optimal amounts of all goods.
D) consuming more than an optimal amount of at least one good.
C
You might also like to view...
The presence of discouraged workers
A. may cause the official unemployment rate to understate the true amount of unemployment. B. reduces the size of the labor force but does not affect the unemployment rate. C. may cause the official unemployment rate to overstate the true amount of unemployment. D. increases the size of the labor force but does not affect the unemployment rate.
When y changes, x stays the same. The line depicting this relationship would be
A) vertical. B) horizontal. C) linear with a negative slope. D) linear with a positive slope.
The American Federation of State, County, Government and Municipal Employees is an example of a(n)
A) guild. B) craft union. C) industrial union. D) public-sector union.
Privatizing a public park would most likely do all of the following except
a. create a negative externality b. give people a more attractive park c. allow the new property owners to earn a profit d. assign property rights to the new owners e. bring in government revenue through the sale