When Your Budget Line Is Just Tangent to Your Indifference

question 60

True/False

When your budget line is just tangent to your indifference curve, you are at the point on the budget line that you least prefer.

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Definitions:

Predetermined

Something established or decided in advance, not subject to change or influence by subsequent events.

Actualization Tendency

The innate drive in humans towards growth, fulfillment of potential, and self-realization, often associated with the humanistic psychology of Carl Rogers.

Biological Instincts

Innate impulses or drives present in all individuals that guide behavior and ensure survival.

Conditional Positive Regard

Acceptance and love from others that is contingent upon one's behavior meeting certain conditions or expectations.