Which One of the Following Is True at the Best

question 26

Multiple Choice

Which one of the following is true at the best affordable choice of a consumer?

• A)Marginal rate of substitution exceeds the slope of the budget line.
• B)Marginal rate of substitution is less than the relative price of the good measured on the x-axis.
• C)All income is spent.
• D)The consumption choice is outside the budget line.
• E)Other consumption points along the consumer's budget line lie on higher indifference curves.

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Definitions:

Haploid Gametes

Sex cells (sperm or ova) containing half the number of chromosomes of a normal cell, crucial for sexual reproduction.

Mesoderm

The middle layer of the three primary germ layers in the early embryo, which develops into muscles, bones, circulatory system, and other internal organs.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the epidermis and nervous system.

Endoderm

The innermost layer of cells or tissue of an embryo in early development, which gives rise to the lining of the digestive and respiratory systems.