The Point on the Budget Line That Reaches the Greatest

question 52

Multiple Choice

The point on the budget line that reaches the greatest level of utility is that point where

• A)the difference between the slope of the budget line and the slope of an indifference curve is greatest.
• B)the budget line touches the horizontal axis.
• C)the slope of the budget line equals the slope of an indifference curve.
• D)the budget line touches the vertical axis.
• E)an indifference curve is beyond the budget line.

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Definitions:

Homestead Exemption

A law permitting a debtor to retain the family home, either in its entirety or up to a specified dollar amount, free from the claims of unsecured creditors or trustees in bankruptcy.

Bankruptcy Law

The area of law that deals with the rules and processes through which individuals or businesses can eliminate or reorganize their debts under the jurisdiction of a federal bankruptcy court.

Debtors

Individuals or entities that owe money to another individual or entity.

Creditors

Individuals or entities to whom money is owed by a debtor.