A Constant Marginal Rate of Substitution Between Two Goods Implies

question 15

Multiple Choice

A constant marginal rate of substitution between two goods implies

• A)the goods are perfect complements.
• B)the goods are substitutes but not perfect substitutes.
• C)the goods are both inferior goods.
• D)one good is a normal good and one good is an inferior good.
• E)the goods are perfect substitutes.

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Definitions:

Coincidence-of-wants

A situation in barter economies where two parties each have something the other wants, facilitating a direct exchange without the need for money.

Copyrights

A form of intellectual property protection that grants the creator exclusive rights to their original works of authorship, such as literary, musical, and artistic works.

Trademarks

Distinctive signs or symbols used by a company to identify and distinguish its products or services from those of others.

Property Rights

The legal rights to possess, use, and dispose of assets including real estate, intellectual property, and personal possessions.