If the Combination of Two Goods Occurs at a Point

question 346

Multiple Choice

If the combination of two goods occurs at a point of tangency between the budget line and an indifference curve, then:

• A)utility has been maximized.
• B)some available income has not been spent.
• C)utility can be decreased by consuming more of both goods.
• D)utility can be increased by consuming more of one good and less of the other.

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Definitions:

Representative Democracy

A system of government where citizens elect representatives to make decisions on their behalf.

Governmental Elections

The structured process through which citizens of a political entity select individuals to hold public office and contribute to governance.

Liberals

Individuals or groups advocating for policies that emphasize individual rights, social equality, and a supportive role for government.

Libertarians

Individuals who advocate for minimal government intervention in the personal and economic lives of citizens, emphasizing individual liberty and free-market principles.