An Optimising Consumer Will Select a Consumption Bundle in Which

question 93

Multiple Choice

An optimising consumer will select a consumption bundle in which the:

• A)marginal rate of substitution is equal to income
• B)marginal rate of substitution is equal to the relative price
• C)ratio of expenditure shares equals the marginal rate of substitution
• D)utility exceeds price

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Definitions:

Amortised

The process of gradually writing off the initial cost of an asset over its useful life.

Internally Generated

Refers to assets or values created within a company through its own processes and activities, rather than acquired externally.

AASB 138

An Australian Accounting Standard Board rule that outlines the accounting requirements for intangible assets not covered by other specific standards.

Finite Useful Lives

refers to the expected period over which an asset is anticipated to be economically beneficial to an entity, after which it is likely to be considered obsolete or worn out.