Indifference Curves Are Convex to the Origin If

question 166

Multiple Choice

Indifference curves are convex to the origin if

• A)a person's marginal rate of substitution declines as he or she consumes more of a good.
• B)a person's marginal rate of substitution increases as he or she consumes more of a good.
• C)the law of diminishing marginal utility does not hold.
• D)a person's marginal rate of substitution rises as he or she consumes more of a good.

---

Definitions:

Defense Mechanism

A defense mechanism is a psychological strategy unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.

Projection

A defense mechanism where an individual ascribes their own unwanted thoughts, feelings, or motives onto another person.

Dishonest Tax Returns

The act of knowingly providing false information on a tax return to reduce tax liability, which is illegal and subject to penalties.

Defense Mechanism

Psychological strategies brought into play by individuals, groups, or even nations, to cope with realities and to maintain self-image by concealing the motivations behind one’s behavior.