Which One of the Following Statements Is True About the Indifference

question 28

Multiple Choice

Which one of the following statements is true about the indifference curves for two goods that are close but not perfect substitutes?

• A)The indifference curves are negatively-sloped straight lines.
• B)The indifference curves are L-shaped.
• C)The marginal rate of substitution is constant.
• D)The marginal rate of substitution decreases as more of the good measured on the x-axis and less of the good measured on the y-axis are consumed.
• E)The marginal rate of substitution is negative.

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Definitions:

Consideration Behaviors

The actions or approaches taken by individuals or leaders that show attention to and care for the feelings and needs of others.

Primary Weakness

The most significant shortcoming or area needing improvement in an individual, system, or process.

Consideration

A leadership behavior focusing on creating mutual respect or trust and focuses on a concern for group members' needs and desires.

Mutual Trust

A reciprocal belief in the reliability, truth, ability, or strength of all parties involved in a relationship or transaction.