Which of the Following Statements Is True

question 43

Multiple Choice

Which of the following statements is true?

• A) Corner solutions always satisfy the tangency condition.
• B) Interior solutions may or may not satisfy the tangency condition.
• C) Interior solutions always satisfy the tangency condition.
• D) Whenever the consumer purchases good X but not good Y, then MRS_XY ≤ P_X/P_Y at the chosen bundle.

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Definitions:

Liability

A legal obligation to settle a debt or responsibility, which can arise from contracts, torts, or statutes requiring individuals or entities to compensate for losses or damages caused.

False Entries

Incorrect or misleading information entered into a record or document, particularly with the intent to deceive.

Defalcation

Misappropriation of funds or embezzlement, typically by a person trusted with the management of those funds.

Ponzi Scheme

A deceptive investment scheme that offers high returns with minimal risk to investors, but instead of earning from genuine business operations, it pays profits to earlier investors using the funds from new participants.