Multiple Choice
Which of the following is true when a consumer is optimizing her consumption choices across two or more goods?
A) She is not necessarily on the highest indifference curve in her indifference map.
B) The budget constraint intersects her indifference curve at her chosen consumption bundle.
C) She equates the total utility per good for all goods.
D) She is not necessarily spending all of her budget allotted to the goods.
Correct Answer:

Verified
Correct Answer:
Verified
Q38: An example of goods which are perfect
Q39: An income consumption curve (shown on an
Q40: Suppose a consumer must pay $P per
Q41: The consumption of the composite good is
Q42: If a consumer is at a corner
Q44: Which of the following statements about the
Q45: Figure 3-1 shows the preferences of a
Q46: The Lagrangian method of optimization results
Q47: Suppose hamburger is on the horizontal axis
Q48: Tim gets constant marginal utility of 4