The Property of Diminishing Marginal Rate of Substitution Follows from the Property

question 36

Multiple Choice

The property of diminishing marginal rate of substitution follows from the property that the indifference curve is

• A) downward sloping.
• B) upward sloping.
• C) bowed in toward the origin.
• D) bowed out from the origin.
• E) concave from the origin.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Journalizing

The process of recording financial transactions in a journal or diary, marking the first step in the accounting cycle.

General Journal

A general journal is a fundamental accounting record where all day-to-day financial transactions of a business are initially recorded.

Ledger Accounts

Financial records within a ledger that summarize the transactions related to a company's assets, liabilities, equity, revenues, and expenses.