If the Indifference Curve Is Not Tangent to the Budget

question 11

True/False

If the indifference curve is not tangent to the budget line,then we can be sure that the consumer is not at the optimum.

---

Definitions:

Accrued Salaries

Salaries that have been incurred but not yet paid, representing an expense for the company and a liability until the payment is made.

Periodic Inventory System

An inventory accounting system where inventory levels and cost of goods sold are determined at the end of an accounting period through physical counts.

Merchandise

Goods that are bought and sold in the course of business, typically in a retail or wholesale setting.

Note Payable

A written promissory note in which the borrower agrees to pay back the lender a certain amount of money at a future date or on demand.