The Assumption That the Magnitude of the Slope of an Indifference

question 72

Multiple Choice

The assumption that the magnitude of the slope of an indifference curve decreases moving to the right along the indifference curve is known as the assumption of

• A) the price effect.
• B) a diminishing marginal rate of substitution.
• C) an increasing marginal rate of substitution.
• D) an indifference curve effect.

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Definitions:

Standard Error

The statistical term that measures the accuracy with which a sample represents a population.

Mean

The arithmetic average of a set of numbers, calculated by adding them up and dividing by the count of numbers.

Confidence Interval

A spread of values, emerging from the statistical study of a sample, which has a likelihood of including the value of a non-disclosed population parameter.

Mean

The arithmetic average of a dataset, found by adding all the numbers in the set and dividing by the count of numbers.