An Optimizing Consumer Will Select the Consumption Bundle in Which

question 139

Multiple Choice

An optimizing consumer will select the consumption bundle in which the

• A)ratio of total utilities is equal to the relative price ratio.
• B)ratio of income to price equals the marginal rate of substitution.
• C)marginal rate of substitution is equal to the relative price ratio of the goods.
• D)marginal rate of substitution is equal to marginal utility.

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Definitions:

401(K) Retirement Plans

A tax-advantaged retirement savings plan offered by many employers in the United States, allowing employees to save a portion of their paycheck before taxes.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees over a specific period.

Deduction

The process of reaching a conclusion based on the available evidence or facts.

Advanced Degree

A level of academic achievement beyond a bachelor's degree, such as a master's or doctoral degree.