If a Consumer Consumes Two Goods, X and Y, and Has

question 200

Multiple Choice

If a consumer consumes two goods, X and Y, and has indifference curves that are bowed inward, the consumer's optional choice occurs when

• A)he consumes the maximum affordable quantity of good X.
• B)he consumes the maximum affordable quantity of good Y.
• C)his indifference curve is tangent to his budget constraint.
• D)his indifference curve lies entirely above his budget constraint.

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Definitions:

Step-Down Method

A cost allocation method used in accounting to assign overhead costs to products or service departments in a sequential manner.

Step-Down Method

A cost allocation method that sequentially allocates service department costs to other service departments and then to production departments.

Janitorial Department

A division within an organization dedicated to the maintenance and cleaning of buildings and facilities.

Allocated Based on Space

The distribution of resources or costs among departments or projects according to the physical area they occupy or require.