If an Individual Consumes Only Two Goods and Consumption of One

question 395

Multiple Choice

If an individual consumes only two goods and consumption of one good increases, then in order to keep the consumer on the same indifference curve, consumption of the other good must

• A) increase.
• B) decrease.
• C) increase proportionately.
• D) become negative.

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Definitions:

Oral Stop Payment

A verbal request made to a financial institution asking them to prevent the payment or processing of a check or financial instrument.

Written Stop Payment

A formal written notice given to a bank instructing it not to pay out funds under a specific check or transaction.

Recourse

A right or legal means to obtain repayment, compensation, or remedy in the event of a breach of contract or agreement.