Suppose That a Consumer Has Utility Function $\mathrm { U } = \mathrm { Ax } 2 \mathrm { y } 2$

question 34

Multiple Choice

Suppose that a consumer has utility function $\mathrm { U } = \mathrm { Ax } 2 \mathrm { y } 2$ with $\mathrm { MUx } = 2 \mathrm { Ay } 2 \mathrm { x }$ and $\mathrm { MUy } = 2 \mathrm { Ax } 2 \mathrm { y }$ . Which of the following statements is false?

• A)The marginal utilities are positive.
• B)The marginal rate of substitution is diminishing.
• C)The indifference curves are bowed away from the origin.
• D)The indifference curves are downwards sloping.

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Definitions:

Sensory Neurons

Nerve cells that are responsible for converting external stimuli from the environment into internal electrical impulses for the brain to interpret.

Motor Neurons

Nerve cells forming part of the nervous system that convey commands to muscles, causing them to contract.

Reflex

A simple, automatic response to a sensory stimulus, such as the knee-jerk response.

Sensory Stimulus

An external event or factor that influences a sensory organ, leading to a sensory response or perception.