The Ratio of the Prices of the Two Goods Is

question 373

Multiple Choice

The ratio of the prices of the two goods is equal to the ratio of the marginal utilities of the two goods at:

• A)the vertical intercept of the budget line.
• B)the optimal consumption bundle.
• C)the horizontal intercept of the budget line.
• D)the intersection of the budget line with the highest indifference curve.

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Definitions:

Dominant Majority Group

The social group in a society that holds the most power and influence, often setting norms and standards for others to follow.

Contact Hypothesis

A theory suggesting that under appropriate conditions, interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.

Equal Status

A principle suggesting that greater interaction between groups under conditions of equal status will reduce prejudice and improve relations among them.

Hostility

Aggressive behavior or attitudes directed towards others, often stemming from anger or antagonism.