The Marginal Rate of Substitution Between First-Period Consumption and Second-Period

question 41

Multiple Choice

The marginal rate of substitution between first-period consumption and second-period consumption:

• A)is the inverse of the slope of an indifference curve, in which first-period consumption is graphed along the horizontal axis.
• B)is generally high when first-period consumption is high.
• C)indicates by how much first-period consumption changes for a one-unit change in first-period income.
• D)reveals the rate at which the consumer is willing to substitute second-period consumption for first-period

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Definitions:

Arithmetic Operator

Symbols used in mathematics and programming to perform operations like addition, subtraction, multiplication, and division.

Two-digit Year

A date format that uses only the last two digits of the year, which can cause ambiguity or the "Year 2000 problem" in computing and data management.

Active Cell

The currently selected cell in a spreadsheet, where data can be entered or edited.

MIN Function

A function in programming and spreadsheet applications that returns the smallest value in a given set of numbers.