The Following Diagram Shows One Indifference Curve Representing the Preferences

question 144

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)2/5
• B)1
• C)5/2

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Definitions:

Industrialization

The process of developing industries in a country or region on a wide scale, transforming its economy from primarily agrarian to one dominated by manufacturing and services.

Holy Alliance

A coalition formed by Russia, Austria, and Prussia in 1815, after the Napoleonic Wars, to defend Christian principles and suppress revolutionary and secular movements.

Italian Revolution

A series of political events that contributed to the unification of Italy in the 19th century, leading to the consolidation of the Italian states into a single nation.

King Charles Albert

An Italian monarch who ruled the Kingdom of Sardinia from 1831 until his abdication in 1849, known for his liberal reforms and involvement in the First Italian War of Independence.