The optimal level of consumption is achieved when ________. A) ...

[WWatsford]

The optimal level of consumption is achieved when ________.
 
  A) consumption in one period is equal to consumption in the next period
  B) utility in one period is equal to utility in the next period
  C) all income and wealth has been spent
  D) the slope of the indifference curve is equal to the slope of the budget line

Question 2

Constant returns to scale (CRS) implies that ________.
 
  A) increasing all the factor inputs by the same percentage lead to the same percentage increase in output
  B) increasing all the factor inputs by the same percentage lead to a higher percentage increase in output
  C) increasing all the factor inputs by the same percentage lead to a lower percentage increase in output
  D) increasing all the factor inputs by the same percentage leaves output unchanged
  E) none of the above

[scikid]

Answer to Question 1

D

Answer to Question 2

A