Consider the Following Three Market Baskets: If Baskets a and B

question 39

Multiple Choice

Consider the following three market baskets: If baskets A and B are on the same indifference curve and if indifference curves exhibit diminishing MRS:

• A)C is preferred to both A and B.
• B)A and B are both preferred to C.
• C)C is on the same indifference curve as A and B.
• D)There is not enough information to determine preferences for C relative to the other goods.

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Definitions:

MATCH Function

A function in Excel and other spreadsheet applications that searches for a specified item in a range of cells, and then returns the relative position of that item.

Total Row

A feature in spreadsheet software that automatically calculates and displays the sum, average, count, or other statistics for data in a column.

Table Tools

A collection of tools or features in word processing and spreadsheet software designed to format, edit, and manage tables.

Descriptive Table Name

A clearly defined and meaningful name assigned to a table in a database to indicate its contents or purpose.