Economists believe that only a small part of human behavior can be explained and predicted by assuming that most people act as if they are motivated by their own self-interest in an effort to increase their expected personal satisfaction

Suppose you solve a utility maximization problem, and the solution value of the Lagrange multiplier equals zero. What does this outcome imply about the problem solution?

A) You must have made an error while solving the problem. B) The budget constraint is not binding, and the constrained solution is equal to the solution to the unconstrained utility maximization problem. C) The optimal utility level for the consumer equals zero. D) The consumer's demand curve is upward sloping.

Corporations can attract more lenders by offering a lower coupon on their bonds as compared to the government bonds

a. True b. False Indicate whether the statement is true or false