If the Combination of Two Goods Is a Point of Tangency

question 189

Multiple Choice

If the combination of two goods is a point of tangency between the budget line and an indifference curve, then:

• A) consumer equilibrium has been achieved.
• B) some available income has not been spent.
• C) utility can be decreased by consuming more of both goods.
• D) utility can be increased by consuming more of one good and less of the other.

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Definitions:

Haploid

Referring to a cell or organism that contains a single set of unpaired chromosomes, as opposed to the diploid state which has paired chromosomes.

Homologous Chromosome

Chromosomes that are paired during meiosis, having the same genes at the same loci but possibly different alleles.

Metabolic Pathway

A series of chemical reactions in which the product of one reaction becomes the substrate of the next reaction.

Enzyme

Biological molecules that act as catalysts, speeding up chemical reactions in the body without being consumed in the process.