At the Optimal Consumption Bundle,the Marginal Rate of Substitution of Leisure

question 37

Multiple Choice

At the optimal consumption bundle,the marginal rate of substitution of leisure for consumption is equal to

• A) the real wage and the budget line is tangent to an indifference curve.
• B) minus the real wage and the budget line is tangent to the indifference curve.
• C) the real wage and the budget line intersects the indifference curve..
• D) minus the real wage and the budget line intersects the indifference curve.
• E) the real wage and on the highest possible indifference curve.

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Definitions:

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