The Point Where the Indifference Curve Is Tangent to the Budget

question 429

Multiple Choice

The point where the indifference curve is tangent to the budget line

• A) is the best affordable point.
• B) is where the marginal rate of substitution exceeds the relative price by as much as possible.
• C) is a point on consumer's demand curve.
• D) All of the above answers are correct.

---

Definitions:

Tax-holiday

A temporary reduction or elimination of a tax by the government to encourage investment or stimulate consumer spending.

Transnational Corporations

Large companies that operate and distribute products or services in multiple countries beyond their home base, often influencing global trade and economy.

Globalization

A political, economic, and cultural process that involves the intensification of consciousness of the world as a whole and an increased interdependence between nation-states and cultures.

Commodification of Love

The process by which genuine emotional and relational experiences of love are transformed into commercial and transactional relationships.