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.

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Definitions:

Manufacturing Overhead

includes all production costs other than direct materials and direct labor, such as indirect materials, indirect labor, and factory-related expenses.

Cost of Goods Sold

The total cost directly associated with producing goods that have been sold during a specific period.

Direct Material Purchased

The total quantity and cost of raw materials acquired for use in the production process.

Accounting Records

Documentation and books that systematically and comprehensively record the financial transactions of an entity, allowing for financial tracking and reporting.