If an Indifference Map for a Consumer Is Made Up

question 147

Multiple Choice

If an indifference map for a consumer is made up of straight, negatively sloped lines, the marginal rate of substitution ________ as more of the good on the horizontal axis is consumed.

• A) does not diminish
• B) diminishes
• C) increases
• D) More information is needed to answer the question.

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Definitions:

Normal Personality

A psychological term describing personality traits and behaviors that are common and socially acceptable within a given culture.

Theories

General explanations of abstract concepts, phenomena, or relationships based on a body of evidence.

Ambiguous Stimulus

Any object, event, or situation that lacks clear interpretation or meaning and can be perceived in multiple ways.

Projective Test

A type of psychological test designed to let a person respond to ambiguous stimuli, potentially revealing hidden emotions and internal conflicts.