When a Consumer's Marginal Rate of Substitution Between X and Y

question 46

Multiple Choice

When a consumer's marginal rate of substitution between X and Y is equal to the ratio of prices for X and Y,and when the consumer is spending all available income,then

• A)the budget line is tangent to an indifference curve.
• B)the consumer is not maximizing his utility.
• C)a higher indifference curve can be reached given the existing budget line.
• D)the budget line is tangent to the indifference curve at all quantities of X and Y.
• E)all budget lines are tangent to all indifference curves.

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Definitions:

Person-centered Therapy

A psychotherapeutic approach developed by Carl Rogers that emphasizes an empathetic, nonjudgmental environment, allowing clients to lead the conversation and process of therapy.

Intrinsic Motivation

Type of motivation in which a person performs an action because the act itself is rewarding or satisfying in some internal manner.

Cognitive Therapy

A form of psychotherapy that focuses on changing negative patterns of thought to improve emotional regulation and develop personal coping strategies targeting solving current problems.

Theoretical Background

The foundation of established principles and theories that underpin a particular area of study or research.