If an Indifference Curve Is Bowed in Toward the Origin

question 13

Multiple Choice

If an indifference curve is bowed in toward the origin, the marginal rate of substitution is:

• A)different for each bundle along the indifference curve
• 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)not likely to reflect relative value of goods

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Definitions:

Negotiable Instrument

An official paper that assures the delivery of a particular monetary amount, which can be demanded at any moment or at an agreed-upon time, identifying the person who will make the payment.

Default

The failure to fulfill an obligation, especially the failure to make payments on a loan.

Treasurer

An officer in an organization responsible for managing the organization's financial affairs, including the custody and disbursement of funds.

Obligation

A legal or moral duty to do something or refrain from doing something.