Which of the Following Statements Is Correct? a Consumer Will

question 115

Multiple Choice

Which of the following statements is correct? A consumer will be maximising utility when:
(i) the indifference curve is tangent to the budget constraint
(ii) the marginal rate of substitution equals the ratio of the prices
(iii) the marginal utility per dollar spent on good x is equal to the marginal utility per dollar spent on good Y

• A)(i) only
• B)(ii) only
• C)(i) and (ii) only
• D)(i), (ii) and (iii) only

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Definitions:

Competence

The ability to do something successfully or efficiently, often related to specific skills or knowledge.

Hostile Sexism

Negative attitudes and stereotypes about women that are openly antagonistic or derogatory.

Paid Less

Receiving lower compensation for work performed compared to others, often highlighted in discussions of wage disparities.

Competent

Having the necessary ability, knowledge, or skill to perform a task successfully or efficiently.