The Consumer's Expenditure Minimization Problem Has an Optimum at an Expenditure

question 46

True/False

The consumer's expenditure minimization problem has an optimum at an expenditure of zero.

---

Definitions:

Import Demand Curve

A graph showing the relationship between the price of an imported good and the quantity of the good that consumers in the importing country are willing to buy.

Equilibrium World Price

The price at which the supply of a good on a global scale exactly matches the world demand for that good.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of two goods that can be produced within a given resource constraint.

Trading Possibilities Curve

A graphical representation that shows the different quantities of two goods or services that a country can efficiently produce and trade given fixed resources.