Multiple Choice
A consumer maximizes utility where the
A) budget line intersects an indifference curve
B) budget line is tangent to an indifference curve
C) distance between the budget line and an indifference curve is greatest
D) indifference curve farthest from the origin intersects the budget line twice
E) area between the indifference curve and the budget line is the greatest
Correct Answer:

Verified
Correct Answer:
Verified
Q2: A candy bar sells for 50 cents,
Q3: A rotation of the budget line indicates
Q4: Exhibit 6-23 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 6-23
Q5: Exhibit 6-25 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 6-25
Q6: Exhibit 6-29 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 6-29
Q8: Exhibit 6-29 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 6-29
Q9: If a consumer purchases only one good,
Q10: Which of the following is not a
Q11: Exhibit 6-27 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 6-27
Q12: Exhibit 6-25 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 6-25