Assume That Two Combinations of Two Goods Yield the Same

question 27

Multiple Choice

Assume that two combinations of two goods yield the same level of satisfaction.We can conclude that these combinations are on:

• A)the same price line.
• B)the same budget constraint.
• C)the same indifference curve.
• D)different indifference curves.

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Definitions:

Developing Nations

Countries with a lower level of industrialization, lower per capita income levels, and often higher rates of poverty compared to developed countries.

Unemployment

The situation when individuals who are willing and able to work are unable to find employment, often measured by the unemployment rate.

Saving

Disposable income not spent for consumer goods; equal to disposable income minus personal consumption expenditures; saving is a flow. Compare with savings.

Developing Countries

Nations with a lower level of industrialization, lower living standards, and lower Human Development Index (HDI) scores compared to developed countries.