A Consumer Satisfies the Condition MU_x/P_x = MU_y/P_y When His

question 60

Multiple Choice

A consumer satisfies the condition MU_x/P_x = MU_y/P_y when his indifference curve ________ his budget constraint.

• A) is completely above
• B) is completely below
• C) is just tangent to
• D) crosses

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Definitions:

Lower Inflation Rates

Lower inflation rates refer to a situation where there is a slow rate of increase in the general level of prices for goods and services, which can indicate a stable economic environment.

Foreign Subsidiary

A local operation completely owned by a foreign firm.

Local Firm

A business establishment that operates in a specific geographical area and typically serves the needs of a local community.

APEC

The Asia-Pacific Economic Cooperation, a forum for 21 Pacific Rim member economies that promotes free trade throughout the Asia-Pacific region.