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:

Upward Mobility

The ability or opportunity for individuals or groups to improve their social status, often through education, income increase, or gaining of prestige.

Gini Index

A statistical measure of income inequality within a population, ranging from 0 to 1, where 0 represents perfect equality and 1 represents maximum inequality.

Income Inequality

The unequal distribution of income within a population, leading to gaps between the wealthiest and poorest individuals.

Social Inequality

The existence of unequal opportunities and rewards for different social positions or statuses within a group or society.