If a Person Consumes Only Two Goods,which of the Following

question 277

Multiple Choice

If a person consumes only two goods,which of the following is NOT necessary for a consumer to be at his or her best affordable point of consumption?

• A) The consumer chooses a bundle of goods that lies on his or her budget line.
• B) The consumer is on his or her highest attainable indifference curve.
• C) The consumer chooses equal amounts of both goods.
• D) The marginal rate of substitution between the two goods is equal to the relative price of those two goods.
• E) The indifference curve is tangent to the budget line.

---

Definitions:

Computer Franchise

A franchise operation that provides computer-related services or products, often including sales, repair, and maintenance.

IRS Form 1040 C

is a tax form for aliens leaving the United States to report income received or expected for the entire year.

Sole Proprietorship

A form of business organization where a single individual owns and operates the business, bearing full responsibility for its debts and liabilities.

Capital Intensive

Describing a business that requires significant investment in capital assets like machinery and equipment to produce goods or services.