If Two Goods Are Perfect Substitutes,then Their

question 44

Multiple Choice

If two goods are perfect substitutes,then their

• A)indifference curves are positively-sloped straight lines.
• B)indifference curves are negatively-sloped straight lines.
• C)indifference curves are L-shaped.
• D)marginal rate of substitution is zero.
• E)marginal rate of substitution is infinity.

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Definitions:

Schedule A

A form used in the U.S. tax system for itemizing deductions, including medical expenses, taxes paid, and charitable contributions.

Schedule C

A tax form used by sole proprietors in the United States to report the income and expenses of their business, used to calculate net business profit or loss.

Primarily Rental

Describes a property used mainly for rental purposes, affecting its tax treatment and eligible deductions.

Primarily Personal

A classification often used in taxation to describe expenses or activities that are mainly for personal benefit and not business or trade related, affecting their deductibility.