A Consumer Is in Equilibrium When the

question 19

Multiple Choice

A consumer is in equilibrium when the

• A) consumer is buying any combination of goods and services on his or her budget line.
• B) consumer is buying the combination of goods and services on the budget line and on the highest attainable indifference curve.
• C) marginal rate of substitution is as small as possible.
• D) marginal rate of substitution is as large as possible.
• E) marginal rate of substitution exceeds the relative price of the two goods by as much as possible.

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Definitions:

WAIS Scores

Scores derived from the Wechsler Adult Intelligence Scale, a tool used to measure a person's cognitive ability or intelligence.

Initiating Structure

A leadership behavior characterized by the organizing, structuring, and defining of roles, tasks, and objectives for team members.

Consideration

The extent to which a leader is approachable and shows personal concern and respect for employees.

Leader Reward Behaviour

The leader’s use of compliments, tangible benefits, and deserved special treatment.