Any combination of goods lying outside of the budget line:
A. implies that the consumer is not spending all his income.
B. yields less utility than any point on the budget line.
C. yields less utility than any point inside the budget line.
D. is unattainable, given the consumer's income.
Answer: D
Economics
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A) marginal social cost; marginal private cost B) marginal private benefit; marginal social benefit C) marginal private benefit; marginal private cost D) marginal private cost; marginal social cost
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Briefly and concisely define the following terms:
a. fiscal federalism b. horizontal equity c. vertical equity d. benefits principle of taxation
Economics