At the Best Affordable Point,which Statement Is True

question 27

Multiple Choice

At the best affordable point,which statement is true?

• A)The slope of the indifference curve equals the slope of the budget line.
• B)The marginal rate of substitution between two goods equals their absolute price.
• C)The highest affordable indifference curve has the same intercept as the budget line.
• D)Other points on the same indifference curve are affordable but not preferred.
• E)Some income is not spent.

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Definitions:

Hydroelectric Dam

A structure that uses the energy from flowing water to generate electricity, capitalizing on water cycle and gravitational forces.

Lattes

A coffee drink made with espresso and steamed milk, often served with foam on top.

Gift Card

A prepaid debit card loaded with a specific amount of money, which can be used as a gift and is redeemable for purchases at specified retailers.

Budget Line

Displays combinations of products that a consumer can afford with a fixed budget, based on their prices.