Moving Along an Indifference Curve,if a Consumer Requires a Small

question 46

Multiple Choice

Moving along an indifference curve,if a consumer requires a small amount of the good measured along the y-axis to make up for one unit less of the good measured on the x-axis,then

• A) total utility is increasing.
• B) the marginal rate of substitution is low and the indifference curve is flat.
• C) the marginal rate of substitution is low and the indifference curve is steep.
• D) the marginal rate of substitution is high and the indifference curve is steep.
• E) the marginal rate of substitution is high and the indifference curve is flat.

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Definitions:

Biological Maturation

The process by which organisms grow and develop according to their genetic timetable, resulting in a predictable sequence of physical changes.

Inherent Goodness

The belief or principle that people are born inherently good, with naturally positive qualities.

Flawed Nature

The concept that inherent imperfections exist within individuals or systems, leading to potential failures or moral shortcomings.

Environment Influences

The impact of surrounding physical and social settings on an individual's behavior, thoughts, and feelings.