If an Indifference Curve Is Bowed in Toward the Origin

question 223

Multiple Choice

If an indifference curve is bowed in toward 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.

---

Definitions:

Federal Regulation

Refers to the laws and rules imposed by the federal government that businesses, individuals, and other entities must follow.

Nonpossessory Security Interest

A claim or lien on personal property by a creditor that does not involve possession of the property.

Household Goods

Personal property used in a home such as furniture, appliances, and other items for domestic use.

Credit Card Accountability

Responsibilities and obligations associated with the issuance and use of credit cards, often in the context of consumer protection.