If an indifference curve intersects the budget constraint at two points, then ________.
A) the consumer would be equally happy at either of those two points
B) optimal consumption is found by moving to a lower indifference curve
C) optimal consumption is found by moving to a lower budget constraint
D) the consumer will choose the point that minimizes consumption expenditure
Question 2
Maryanne expects to work for another 30 years and expects to live another 10 years after she retires. If Maryanne completely smooths consumption over her lifetime, for every 1,000 increase in wealth, she will use ________ for consumption each year.
A) 10.00
B) 25.00
C) 100
D) 333
Mitosis + Check Points 4 of 5
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