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

question 66

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.

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Definitions:

Interaction

In statistics, it refers to a situation where the effect of one variable on an outcome is changed by the level of another variable.

Null Hypotheses

The hypothesis that there is no effect or no difference, and any observed difference is due to sampling or experimental error.

Two-way ANOVA

An approach in statistical analysis used to determine the impact of two nominal variables on a continuous variable they predict.

Interaction Effect

In statistical analysis, it refers to a situation where the effect of one independent variable on a dependent variable depends on the level of another independent variable.