If an Indifference Curve Is Bowed Out Away from the Origin

question 62

Multiple Choice

If an indifference curve is bowed out away from the origin, the marginal rate of substitution is

• A)not likely to reflect the relative value of goods.
• B)likely to be constant for all bundles along the indifference curve.
• C)likely to be identical to the price ratio for each bundle along the indifference curve.
• D)different for each bundle along the indifference curve.

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Definitions:

Fundamental Attribution Errors

A cognitive bias where people are more likely to attribute another’s actions to their character or disposition rather than to external factors.

Internal Attribution Biases

The tendency to attribute one's successes to internal factors and failures to external factors, often underestimating situational influences.

Social Facilitation

The tendency for an individual to perform differently, usually better, in the presence of others than when alone.

Situational Attributions

The process of explaining the behavior of others based on external factors or circumstances, rather than attributing their actions to internal characteristics.