Every point on a budget line has an indifference curve passing ...

[RODY.ELKHALIL]

Every point on a budget line has an indifference curve passing through it. Explain whether the previous statement is correct or not.
 
  What will be an ideal response?

Question 2

The above figure shows the marginal private benefit and marginal social cost of a college education. If students receive a 10,000 voucher
 
  A) no students will go to college.
  B) less than 10 million students will go to college.
  C) 10 million students will go to college.
  D) more than 10 million students will go to college.

[zacnyjessica]

Answer to Question 1

The statement is correct. The consumer has a preference map that consists of an infinite number of indifference curves, one through every possible consumption combination. So there is an indifference curve passing through every point on a budget line.

Answer to Question 2

D

[RODY.ELKHALIL]

Excellent

[Joy Chen]

Thanks for the timely response, appreciate it