If the Combination of Two Goods Is a Point of Tangency

question 166

Multiple Choice

If the combination of two goods is a point of tangency between the budget line and an indifference curve, then:

• A) consumer equilibrium has not been achieved.
• B) all available income has been spent.
• C) utility can be increased by consuming less of both goods.
• D) utility can be decreased by consuming more of both goods.

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Definitions:

Exportable

Pertains to goods or services that can be sold abroad effectively, benefiting from international markets.

Management

The process of planning, organizing, leading, and controlling an organization's human, financial, physical, and information resources to achieve organizational goals in an efficient and effective manner.

Monopsonist

A single buyer dominant in a market, capable of influencing prices due to its purchasing power.

Labor Supply Curve

A graphical representation that shows the relationship between the wage rate and the quantity of labor that workers are willing to supply.