When the Indifference Curve Is Tangent to the Budget Constraint

question 275

Multiple Choice

When the indifference curve is tangent to the budget constraint,

• A) a consumer cannot be made better off without increasing her income.
• B) the consumer is likely to be at a sub-optimal level of consumption.
• C) income is at its optimum for a consumer.
• D) indifference curves are likely to intersect.

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Definitions:

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Permafrost

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Carbon Stores

refer to reservoirs, both natural and artificial, that accumulate and hold carbon-containing chemical compounds for an indefinite period.

Overturn

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