Assume That a Combination of Two Goods Reflects a Point

question 316

Multiple Choice

Assume that a combination of two goods reflects a point of tangency between the budget line and an indifference curve. In this situation, which of the following is INCORRECT?

• A) Consumer equilibrium has been achieved.
• B) All available income has been spent.
• C) Utility can be increased by consuming less of both goods.
• D) The optimal consumption bundle has been reached.

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Definitions:

Glass-Steagall Act

A law enacted in 1933 to separate commercial banking from investment banking, intended to reduce conflicts of interest and prevent bank failures.