If the Combination of Two Goods Occurs at a Point

question 356

Multiple Choice

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

• 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:

Concept Of Containment

A geopolitical strategy aimed at preventing the expansion of an enemy, notably used during the Cold War to limit the spread of communism.

Medicaid

A joint federal and state program that helps with medical costs for people with limited income and resources, offering benefits not typically covered by Medicare.

Joint State-Federal Program

Programs operated and funded by both state and federal governments to serve various public needs, like Medicaid.

Medical Care

A service provided to individuals to maintain or improve their health, often involving the diagnosis, treatment, and prevention of disease.