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:

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Localized Nature

The characteristic of being confined to a specific or limited area, often used in the context of diseases or brain functions.

Explicit Memory

The type of long-term memory that involves conscious recollection of previous experiences or information.

Implicit Memory

A type of memory that enables us to perform tasks without conscious awareness of these previous experiences.