Multiple Choice
When a consumer is in equilibrium this means that he or she is:
A) consuming the largest market basket possible.
B) consuming the best market basket,given his or her preferences,income,and prices.
C) maximizing his or her income.
D) consuming goods with the highest total utility.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: Suppose there are two goods,X and Y,with
Q6: A set of indifference curves between an
Q7: Explain the difference between diminishing marginal utility
Q8: A consumer attains equilibrium by _.<br>A)consuming all
Q9: Negatively-sloped,straight-line indifference curves imply:<br>A)that one of the
Q11: Incorporating altruistic preferences into the theory of
Q12: Which of the following will lead to
Q13: Consider a budget line drawn with apples
Q14: Figure 3-1 shows the preferences of a
Q15: Intersecting indifference curves violate the assumption of