Which of the Following Statements Is True

question 159

Multiple Choice

Which of the following statements is true?

• A) Every point on a budget line lies on an indifference curve.
• B) To determine a consumer's best affordable point, we need only the budget line or the indifference curve.
• C) The price effect is shown by moving up or down a fixed budget line.
• D) Both A and B are true.

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Definitions:

Human Survival

Refers to the ability of humans to continue living and thriving, often despite adverse conditions or challenges.

Social Cost

Refers to the total impact of an activity on society, including negative effects that are not usually accounted for in the marketplace.

Environmental Damage

Harm caused to natural environments due to human activities, often impacting ecosystems, biodiversity, and public health.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type.