Which One of the Following Is True at the Best

question 26

Multiple Choice

Which one of the following is true at the best affordable choice of a consumer?

• A)Marginal rate of substitution exceeds the slope of the budget line.
• B)Marginal rate of substitution is less than the relative price of the good measured on the x-axis.
• C)All income is spent.
• D)The consumption choice is outside the budget line.
• E)Other consumption points along the consumer's budget line lie on higher indifference curves.

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Definitions:

Trickery

The use of deceit, cunning, or manipulation to achieve a goal or influence someone's actions or beliefs.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driven by internal or external factors.

Persuasive Message

A communication designed to convince or influence the audience to adopt a certain viewpoint or to take a specific action.

Maslow's Theory

A psychological theory proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy, from most to least pressing: physiological, safety, love/belonging, esteem, and self-actualization.