The Tangency Condition for the Optimal Choice for a Consumer $\mathrm { MRS } _ { x , y } = P _ { y } / P _ { x }$

question 35

Multiple Choice

The tangency condition for the optimal choice for a consumer is given by:

• A) \(\mathrm { MRS } _ { x , y } = P _ { y } / P _ { x }\)
• B) \(\mathrm { MU } _ { x } / \mathrm { MU } _ { y } = 1\)
• C) \(\mathrm { MRS } _ { x , y } = P _ { x } / P _ { y }\)
• D) \(\mathrm { MU } _ { x } / \mathrm { MU } _ { y } = P _ { y } / P _ { x }\)

---

Definitions:

Two-Tailed Hypothesis

A statistical test hypothesis that considers both directions of deviation from the null hypothesis, thus testing for the possibility of both positive and negative effects.

Population Proportion

The ratio of a specific subgroup within a population to the entire population, typically expressed as a percentage.

Independent Random Samples

Samples selected from a population in such a way that each member has an equal chance of being chosen, with no dependence between the selections.

Standard Error

The standard deviation of the sampling distribution of a statistic, commonly used to estimate the accuracy of sample mean as a predictor of the population mean.