Figure 5-1 Shows the Preferences of a Consumer for Food

question 53

Multiple Choice

Figure 5-1 shows the preferences of a consumer for food and other goods.He is initially in equilibrium at point A where the budget line MN is tangent to the indifference curve.
In Figure 5-1,the total outlay on other goods before the excise subsidy is given by _____.

• A)0M
• B)0N
• C)0E
• D)0G

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Definitions:

Benchmark Portfolio

A standard or point of reference against which the performance of an investment portfolio can be measured.

M-Squared Measure

A measure used in finance to evaluate the performance of an investment portfolio by adjusting for its risk level compared to a benchmark.

Risk-Adjusted Return

This is a measure of how much risk is involved in generating a security's or portfolio's return, helping investors to compare the performance of different investments on a risk-adjusted basis.

Total Risk

The overall uncertainty associated with an investment, combining both systemic and idiosyncratic risks.