When Indifference Curves Are Downward Sloping, the Marginal Rate of Substitution

question 206

True/False

When indifference curves are downward sloping, the marginal rate of substitution is usually constant.

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Definitions:

Discriminant Validity

The extent to which a measure does not correlate with other variables from which it is theoretically supposed to differ.

Interval Scale

A scale of measurement in which the intervals between numbers on the scale are all equal in size.

Ratio Scales

A type of measurement scale that has a true zero point and equal intervals, allowing for the comparison of absolute magnitudes of the numbers.

Absolute Zero

The theoretical temperature at which a system reaches its lowest possible energy state, equivalent to -273.15°C or 0 Kelvin.