The Marginal Rate of Substitution

question 18

Multiple Choice

The marginal rate of substitution:

• A) remains constant as the consumer moves around an indifference curve.
• B) is constant if the goods are perfect complements.
• C) decreases as the consumer moves down a typical indifference curve.
• D) cannot be defined if the goods are perfect substitutes.
• E) none of the above

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Definitions:

Delaware

The first state to ratify the U.S. Constitution, known as "The First State," located in the Mid-Atlantic region of the United States.

Best Poor Man's Country

A historical notion that certain regions, notably parts of early America, offered exceptional opportunities for economic advancement to the economically disadvantaged.

Pennsylvania

A state located in the northeastern part of the United States, known for its historical significance in the founding of the country.

Walking Purchase

A controversial 1737 land deal in which the Penn family and colonists claimed a large area of land in Pennsylvania through a fraudulent walking survey.