(Figure: Indifference Curve) in the Figure, What Is the Marginal

question 65

Multiple Choice

(Figure: Indifference Curve) In the figure, what is the marginal rate of substitution of hats for books between points A and B?

• A) .125
• B) .5
• C) 2
• D) 8

---

Definitions:

Market Value

An estimation of the price at which an asset or company could be bought or sold in a current market.

IFRS

International Financial Reporting Standards represent worldwide accounting norms that facilitate the creation of financial statements.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards used for financial reporting and accounting.

Principles-based

An approach that bases decisions on general principles or values rather than specific rules.