Consumer Equilibrium Occurs Where the Budget Line Is Tangent to The

question 67

Multiple Choice

Consumer equilibrium occurs where the budget line is tangent to the:

• A) lowest possible indifference curve.
• B) highest possible indifference curve.
• C) utility maximizing indifference curve.
• D) utility equalization indifference curve.

---

Definitions:

Taxpayer

An individual or entity that is obligated to make payments to municipal, state, or national governments, including taxes on income, property, or sales.

Single

A tax return designation for single taxpayers who are ineligible for any other filing statuses.

Understatement

The act of reporting less income or overstating deductions than actually occurred, potentially resulting in tax discrepancies.

Tax

A compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.