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An indifference curve is a line showing all the combinations of two goods which give a consumer equal utility. In other words, the consumer would be indifferent to these different combinations. Choice of goods with give consumers the same utility APPLES BANANAS 22 17 14 20 10 26 9 41 7 80 Table plotted as indifference curve Diminishing marginal utility The indifference curve is convex because of  diminishing marginal utility . When you have a certain number of bananas – that is all you want to eat in a week. Extra bananas give very little utility, so you would give up a lot of bananas to get something else. Indifference curve map We can also show different indifference curves. All choices on I2 give the same utility. But, it will be a higher net utility than indifference curve I1. I4 gives the highest net utility. Basically, I4 would require higher income than I1. Budget line A budget line shows the combination of goods that can be afforded with yo...

WHAT IS GST? GST is also known as VAT or the value added tax in many countries is a multi stage consumption tax on goods and services. GST is levied on the supply of goods and services at each stage of the supply chain from the supplier up to the retail stage of the distribution. Even though GST is imposed at each level of the supply chain, the tax element does not become part of the cost of the product because GST paid on the business inputs is claimable. Hence, it does not matter how many stages where a particular good an services goes through the supply chain because the input tax incurred at the previous stage is always deducted by the businesses at the next step in the supply chain. GST is a broad based consumption tax covering all sectors of the economy i.e. all goods and services made in Malaysia including imports except specific goods and services which are categorized under zero rated supply and exempt supply orders as determined by the Minister of Finance and published ...

UTILITY MAXIMIZATION The process or goal of obtaining the highest level of utility from the consumption of goods or services. The goal of maximizing utility is a key assumption underlying consumer behavior studied in consumer demand theory. Consumers are assumed to make choices, especially concerning the purchase og goods, such that they obtain highest possible level of satisfaction. Utility maximization can be achieved at the peak of the total utility curve.          Utility maximization is the guiding notion underlying consumer choices analyzed with consumer demand theory and utility analysis . It makes sense to think that people are generally motivated to do what is best for them, to purchase the most satisfying goods, to make the decisions that do more good than harm, to improve their overall standards and well-being that is, to maximize their utility. Working through the logical consequences of this assumption, when combined with other ...

The Federal Government will reduce individual income tax rates by two percentage points for 2.3 million taxpayers in the country, especially those in the M40 group, specifically households with income of less than RM9,000. Prime Minister Datuk Seri Najib Tun Razak, during the tabling of the 2018 Budget in the Dewan Rakyat today, said the move would increase the household disposable income of the people from between RM300 and RM1,000, and was aimed at narrowing the income gap in Malaysia. "This means that an estimated RM1.5 billion in disposable income can be spent by the people. With this move, more than 261,000 individuals are no longer subjected to income tax," he said. He further explained the reduction of the individual income tax rate by two percentage points was for income ranging from between RM20,000 and RM70,000. For income ranging from RM20,001 to RM35,001, the rate is reduced from five to three percent; while that ranging from RM35,001 to RM50,000, the redu...