What the term for the point where the highest attainable indifference curve and the budget constraint are tangent
A)the consumer's equilibrium
B)the consumer's utility minimum
C)the consumer's efficient allocation of resources
D)the consumer's optimum

Question

Quizplus · Accepted Answer

The term for the point where the highest attainable indifference curve and the budget constraint are tangent is the consumer's optimum. This is because at this point, the consumer is maximizing their utility subject to their budget constraint, resulting in the most efficient allocation of resources. Option A is similarly correct, but not as specific. Option B is incorrect as utility minimum refers to the lowest level of satisfaction a consumer is willing to accept, and option C is incorrect as efficiency alone does not necessarily indicate optimization.

What the Term for the Point Where the Highest Attainable