Every Indifference Curve Shows Combinations of First-Period and Second-Period Consumption

question 76

Multiple Choice

Every indifference curve shows combinations of first-period and second-period consumption that:

• A) are tangent to the intertemporal budget constraint.
• B) have equal income and substitution effects.
• C) are available to the consumer.
• D) make the consumer equally happy.

---

Definitions:

Extinction

The permanent loss of all members of a species from the earth, leading to a decrease in biodiversity.

Century

A period of one hundred years.

Estimated

An approximation or educated guess based on available information or data, often used when exact numbers are unavailable.

Living Organisms

Entities that display the characteristics of life, including the ability to grow, reproduce, respond to stimuli, and often, to move.