Perfect Substitutes

question 28

Multiple Choice

Perfect substitutes

• A)always have indifference curves with slopes of -1.
• B)always have indifference curves with slopes of 1.
• C)have fixed rates of trading off one good for another.
• D)have horizontal indifference curves.

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Definitions:

Third World

A term originally used to describe countries that were not aligned with either the capitalist First World or the socialist Second World during the Cold War, now often referring to developing countries.

Gross Domestic Product

The total market value of all goods and services produced within a country's borders in a specific time period, serving as a broad measure of economic activity.

Globalization

The process of interaction and integration among people, companies, and governments worldwide.

Inequality

The unequal distribution of resources, opportunities, and privileges among individuals or groups within a society, leading to disparities in wealth, power, and status.