When indifference curve analysis is used, a consumer optimum occurs at the point at which

A. the indifference curve is tangent to the budget line.
B. the indifference curves intersect.
C. marginal utility/price ratio of all goods consumed is equal.
D. total utility is maximum.

Answer: A

Economics

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Refer to the data below. Assume that Wat originally produced rice and corn at combination C and that Xat originally produced combination B. If the nations now fully specialized based on comparative advantage, the total gains from specialization and trade are:

Answer the following question based on the data provided in the tables below for two hypothetical nations, Wat and Xat. The nations have the production possibilities for rice and corn given in the following table:



A. 25 units of rice and 25 units of corn
B. 50 units of rice and 50 units of corn
C. 100 units of rice and 100 units of corn
D. 100 units of rice and 150 units of corn

Economics

If 1 euro is equal to $1.10, then a bottle of wine selling for $10 U.S. dollars will cost _____ euros.

Economics