The Following Diagram Shows One Indifference Curve Representing the Preferences

question 303

Multiple Choice

The following diagram shows one indifference curve representing the preferences for goods X and Y for one consumer. What is the marginal rate of substitution between points A and B?

• A) 1/2
• B) 4/3
• C) 2
• D) 3

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Definitions:

Theoretically Diverse

Reflecting a wide range of theories or approaches, often within a single field of study or practice, illustrating a variety of perspectives.

School of Thought

A collection or group of people who share common characteristics of opinion or outlook of a philosophy, discipline, belief, social movement, economics, cultural movement, or art movement.

Multifactorial Approach

An analytical strategy considering multiple factors or causes in understanding phenomena or outcomes.

Situational Factors

External influences that affect an individual's behavior or performance in a given context or environment.