Suppose a worker is observed to be working but is forced to work fewer hours than she really wants to work. Which of the following statements is true?
A) She is on an indifference curve which is lower than the one which is tangent to the budget line.
B) She is on an indifference curve which is lower than the one which passes through the point on the budget line corresponding to zero hours of work.
C) The indifference curve that she is on is tangent to the budget line.
D) She is on an indifference curve which is higher than the one which is tangent to the budget line.
E) She is not on an indifference curve.
Correct Answer:
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