The Marginal Rate of Substitution

question 146

Multiple Choice

The marginal rate of substitution

• A)varies along an indifference curve if the curve is bowed inward.
• B)is constant along an indifference curve if the curve is a straight line.
• C)is greater when a consumer has more of two goods rather than less of two goods.
• D)Both a and b are correct.

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Definitions:

Plant Species

A category that ranks below genus and denotes a group of plants that share certain characteristics and are capable of interbreeding to produce fertile offspring.

Endangered Species

Species that are at risk of extinction due to a dramatic decline in their population or habitat.

Flowering Plants

Plants that belong to the group Angiosperms, characterized by bearing flowers in which seeds are enclosed within a fruit.

Mammals

A class of warm-blooded vertebrate animals that possess hair or fur, and whose females produce milk for feeding their young.