The Optimal Combination of Goods for a Consumer to Purchase

question 133

Multiple Choice

The optimal combination of goods for a consumer to purchase is shown by

• A)any intersection of the indifference curve and the budget line.
• B)the point where the budget line touches the vertical axis.
• C)a point of tangency between the budget line and the indifference curve.
• D)the point at which the indifference curve parallels the horizontal axis.
• E)the intersection of two indifference curves.

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Definitions:

Crystallized Intelligence

The accumulation of knowledge, skills, and experiences that one can apply to solve problems; it tends to grow over a person's lifespan.

Vocabulary

The set of words known and used by a person in a particular language.

Crystallized Intelligence

The ability to use learned knowledge and experience.

Large Vocabulary

The extensive set of words known and used by a person in speech and writing.