If Rachel Is at Her Best Affordable Point, Then _______

question 145

Multiple Choice

If Rachel is at her best affordable point, then _______.

• A) the relative price of the goods she buys equals the marginal rate of substitution
• B) she is indifferent among other points on her budget line
• C) her marginal rate of substitution is maximised
• D) her marginal rate of substitution equals 1

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Definitions:

Journal Entry

A record in accounting that represents a financial transaction in a double-entry bookkeeping system, documenting debits and credits to accounts.

Net Income

The earnings left for a firm after deducting expenses, taxes, and all other costs from the total income.

Fair Market Value

The price at which an asset would sell in a competitive auction setting, representing the value between a willing buyer and seller with neither being under any compulsion to buy or sell.