If Max's Marginal Rate of Substitution for Goods a and B

question 66

Multiple Choice

If Max's marginal rate of substitution for goods A and B is 3, then

• A) the price of good A exceeds the price of good B.
• B) the marginal utility of good A is 3 and the marginal utility of good B is 3.
• C) the ratio of the total utilities of good A and good B is 3.
• D) Max is willing to give up 3 units of good A for 1 unit of good B.

---

Definitions:

Native Americans

The indigenous peoples of the Americas, encompassing a wide range of tribes, cultures, and languages existing prior to European colonization.

Servitude

Servitude is a condition in which an individual is legally bound to serve another person for a specified or indeterminate time, often with little to no personal freedom or compensation.

Emancipate

To free someone from legal, social, or political restrictions; commonly used in historical contexts to refer to the freeing of slaves.

Black Slaves

Individuals of African descent who were forcibly taken into slavery and subjected to lifetime servitude, particularly prominent in the Americas during the transatlantic slave trade.