The Marginal Rate of Substitution Is Equal to the

question 483

Multiple Choice

The marginal rate of substitution is equal to the

• A)slope of the indifference curve.
• B)ratio of the prices of the two goods.
• C)slope of the budget constraint.
• D)All of the above are correct.

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Definitions:

Owner's Drawings

The act of an owner drawing funds from a business in a sole proprietorship or partnership for personal needs.

Capital Account

A capital account is a financial statement that shows the changes in a company’s assets, liabilities, and equity, or an individual part of a nation's balance of payments reflecting net change in ownership of national assets.

Owner's Equity

The residual interest in the assets of a business after all liabilities are deducted.

Liabilities

The sum of all debts and financial commitments a company owes to external parties, appearing on the company's balance sheet.