If a Person Consumes Only Two Goods,which of the Following

question 277

Multiple Choice

If a person consumes only two goods,which of the following is NOT necessary for a consumer to be at his or her best affordable point of consumption?

• A) The consumer chooses a bundle of goods that lies on his or her budget line.
• B) The consumer is on his or her highest attainable indifference curve.
• C) The consumer chooses equal amounts of both goods.
• D) The marginal rate of substitution between the two goods is equal to the relative price of those two goods.
• E) The indifference curve is tangent to the budget line.

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Definitions:

Cooperative Behaviour

Actions by individuals that are intended to benefit or assist others within a group, contributing to the group's overall success or well-being.

Autobiography

A self-written account of one's life, often detailing personal experiences, achievements, and challenges.

Peripheral Route

A method of persuasion that relies on cues outside of the message content itself, such as the attractiveness or credibility of the source.

Central Route

A method of persuasion that involves deeply processing the content of a message, focusing on the argument's quality.