The Marginal Rate of Substitution Is Defined as

question 25

Multiple Choice

The marginal rate of substitution is defined as

• A)the feasible rate of substitution given prices.
• B)the amount of good Y that a consumer is willing to substitute for good X and stay at a given level of satisfaction.
• C)the slope of the utility function.
• D)the convexity of the indifference curve.
• E)the amount of good Y substituted for good X by a consumer.

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Definitions:

Psychosexual Development

Freud's theory describing how personality develops in childhood through a series of stages centered on erogenous zones.

Fixation

In psychoanalytic theory, a persistent focus of the id’s pleasure-seeking energies at an earlier stage of psychosexual development.

Reciprocal Determinism

The theory that a person's behavior is both influenced by and influences their personal factors and the environment.

Defence Mechanism

Subconscious methods employed to safeguard someone from the anxiety that stems from impermissible sentiments or thoughts.