Figure 21-19 The Figure Shows Three Indifference Curves and a Budget Constraint

question 153

Short Answer

Figure 21-19
The figure shows three indifference curves and a budget constraint for a consumer named Hannah. When young, Hannah works and earns income. When old, she is retired and earns no income.
​
-Refer to Figure 21-19. Which of the four labeled points is Hannah's optimum?

---

Definitions:

Involvement

The act of being engaged or participating in an activity or situation.

Priority

The order of importance given to tasks or issues based on their urgency or significance.

Independent Older Adult

An elderly person who is able to perform daily activities and maintain their well-being without needing assistance from others.

Severe Withdrawn

Describes an extreme level of social withdrawal, where an individual may isolate themselves and avoid interactions, often linked to mental health issues.