The Absolute Value of the Slope of an Indifference Curve

question 122

Multiple Choice

The absolute value of the slope of an indifference curve is called the:

• A) marginal rate of transformation.
• B) transitivity slope.
• C) indifference rate of preference.
• D) marginal rate of substitution.

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Definitions:

Base Year

A reference year against which economic growth, price changes, or other data is compared in indexes or other statistical measures.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to deflate nominal GDP to real GDP.

Percentage Change

A mathematical calculation that represents the degree of change over time, expressed as a percent, indicating how much something has increased or decreased.

GDP Deflator

An apparatus for gauging the level of prices of all newly made, domestic final goods and services in an economic setting.