In a Budget Line/indifference Curve Diagram,at the Consumer's Equilibrium at the Best

question 168

Multiple Choice

In a budget line/indifference curve diagram,at the consumer's equilibrium at the best affordable point,

• A) any movement upward or downward on the budget line will move the consumer to a less preferred point.
• B) any movement to the northeast to higher indifference curves moves the consumer to a less preferred point.
• C) the slope of the budget line exceeds the marginal rate of substitution by as much as possible.
• D) the budget line has a positive slope and the indifference curve has a negative slope.
• E) the budget line has a negative slope and the indifference curve has a positive slope.

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Definitions:

Ppf

The Production Possibility Frontier, a curve depicting the maximum output possibilities for two goods, given available resources and technology.

Efficiently

The method of performing or functioning in the best possible manner with the least waste of time and effort.

Marginal Rate

Refers to the rate at which change occurs in one variable as a result of an incremental change in another variable, often used in the context of taxation or productivity.

Transformation

A broad term that can refer to a change or alteration in form, appearance, structure, or character, often used in various contexts including mathematics, technology, and social change.