At the Optimum

question 53

Multiple Choice

At the optimum:

• A)the slope of the indifference curve is equal to the slope of the budget constraint
• B)it is still possible for the consumer to increase his consumption of both goods
• C)the indifference curve would intersect the budget constraint at its centre
• D)the budget constraint would have a slope of 1

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Definitions:

Meteorological Phenomenon

An observable event that is explained by the science of meteorology, such as storms, tornadoes, and rainfall.

Spectrum

A range of different positions, opinions, or conditions, often seen as a continuous series.

Rainbow

An optical and meteorological phenomenon that causes a spectrum of light to appear in the sky when sunlight is dispersed through water droplets in the atmosphere.

Genus

In taxonomy, a rank used in the biological classification of organisms that groups together species exhibiting common characteristics.