If Indifference Curves Are Concave to the Origin, Which Assumption

question 145

Multiple Choice

If indifference curves are concave to the origin, which assumption on preferences is violated?

• A) Diminishing marginal rates of substitution
• B) Transitivity of preferences
• C) More is preferred to less
• D) Completeness

---

Definitions:

International Asset Transactions

The sale, trade, or transfer of ownership rights to either real or financial assets, including currency, across international borders.

Trade Deficits

An economic measure where a country's imports exceed its exports over a certain period, indicating an outflow of domestic currency to foreign markets.

Capital and Financial Account

Components of a country's balance of payments, recording the transactions of assets and liabilities, such as direct investments, portfolio investments, and other investments across borders.

Net Exports

The value of a country's total exports minus the value of its total imports, indicating the balance of trade.