The Consumer Is in Equilibrium When

question 80

Multiple Choice

The consumer is in equilibrium when

• A) MRT = MRS.
• B) / = / .
• C) the budget line is tangent to the indifference curve at the bundle chosen.
• D) All of the above.

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Definitions:

Ex Post Facto

A law that retroactively changes the legal consequences or status of actions that were committed before the enactment of the law.

Rights Warning

Typically refers to the Miranda warning, a notification given by police in the U.S. to criminal suspects in police custody, advising them of their right to silence and legal counsel.

Reasonableness

A standard of fairness and rational behavior expected in legal and contractual relationships.

Presumed Innocent

The principle that an individual is considered innocent until proven guilty in a court of law.