Which of the Following Is True When a Consumer Is

question 43

Multiple Choice

Which of the following is true when a consumer is optimizing her consumption choices across two or more goods?

• A)She is not necessarily on the highest indifference curve in her indifference map.
• B)The budget constraint intersects her indifference curve at her chosen consumption bundle.
• C)She equates the total utility per good for all goods.
• D)She is not necessarily spending all of her budget allotted to the goods.

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Definitions:

Inadequate Consideration

A situation in a contractual agreement where the value exchanged between parties is significantly disproportionate or deemed insufficient.

Fraud

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Contract

A legally binding agreement between two or more parties that is enforceable by law, characterized by an offer, acceptance, consideration, and mutual intent to be bound.

Objective Determination

A decision made based on unbiased evidence and facts, without influence from personal feelings or opinions.