MCQOPTIONS
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| 1. |
Which of the following is not true regarding the outcome of a consumer’s optimization process ? |
| A. | The marginal utility per dollar spent on each good is the same |
| B. | The marginal rate of substitution between goods is equal to the ratio of the prices between goods |
| C. | The consumer’s indifference curve is tangent to his budget constraint |
| D. | The consumer has reached his highest indifference curve subject to his budget constraint |
| E. | The consumer is indifferent between any two points on his budget constraint |
| Answer» F. | |