The Magnitude of the Slope of an Indifference Curve

question 81

Multiple Choice

The magnitude of the slope of an indifference curve

• A) is equal to the marginal rate of substitution.
• B) always equals the relative price of the product measured along the horizontal axis.
• C) increases as income increases.
• D) decreases when income increases.

---

Definitions:

Parsons

Refers to Talcott Parsons, an influential American sociologist known for his work on the social action theory and the development of functionalism.

Vested Interests

Veblen’s term to describe why privileged members of society resist change.

Veblen

Refers to Thorstein Veblen, an American economist and sociologist known for his critique of capitalism and the concept of "conspicuous consumption."

Privileged Members

Individuals or groups that enjoy special rights, advantages, or immunities within a society, often based on social, economic, or institutional bias.