Indifference Curves That Cross Would Suggest That

question 393

Multiple Choice

Indifference curves that cross would suggest that

• A)the consumer does not prefer more to less.
• B)the consumer is likely to prefer a redistribution of income from rich to poor.
• C)different individuals have different preferences for the same goods.
• D)the marginal rate of substitution is the same for both indifference curves.

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Definitions:

Security Interest

A legal right or security interest on assets that have been offered as a guarantee, typically for the purpose of ensuring the repayment of borrowed money.

Secured Creditor

A lender that is granted a specific property interest as collateral for a loan, giving the creditor a right to repossess the property if the loan is defaulted.

Disposition

The act of transferring or disposing of an asset or property, or the manner in which someone is inclined to behave or feel.

Collateral

Assets pledged by a borrower to secure a loan or other credit, which the lender can seize if the borrower defaults.