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

---

Definitions:

False Advertising

The act of misleading consumers through deceptive, incorrect, or misrepresented information in advertisements.

Installment Contract

Under the Uniform Commercial Code, a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.

Truth-In-Lending Act

A federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Truth-In-Lending Act

A federal law designed to promote the informed use of consumer credit by requiring disclosures about its terms and cost.