Multiple Choice
A consumer chooses an optimal consumption point where the
A) marginal rate of substitution equals the relative price ratio.
B) slope of the indifference curve exceeds the slope of the budget constraint.
C) ratios of all the marginal utilities are equal.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Q482: Two economists found empirical evidence that when
Q483: The marginal rate of substitution is equal
Q484: Figure 21-14 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-14
Q485: The opportunity cost of current household consumption
Q486: Figure 21-14 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-14
Q488: Figure 21-14 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-14
Q489: Figure 21-13 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-13
Q490: The consumer's optimum is where<br>A)MU<sub>x</sub>/MU<sub>y</sub> = P<sub>y</sub>/P<sub>x</sub>.<br>B)MU<sub>x</sub>/P<sub>y</sub>
Q491: The two "goods" used when economists analyze
Q492: Figure 21-5<br>(a)<br>(b) <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 21-5 (a)