Which One of the Following Statements Is True About the Indifference

question 41

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)both A and C

---

Definitions:

Replacement

Replacement is the act of substituting or exchanging something with a new or different version.

Original Sample

The initial group of participants or observations collected for analysis or experimentation before any manipulation or selection takes place.

Bootstrap Confidence Interval

A statistical technique for estimating the uncertainty of a parameter by resampling with replacement.

Percentile Method

A statistical calculation used to determine the value below which a given percentage of observations in a data set falls.