The Rate at Which a Consumer Is Willing to Exchange

question 44

Multiple Choice

The rate at which a consumer is willing to exchange one good for another, and maintain a constant level of satisfaction, is called the:

• A)marginal rate of substitution
• B)relative price ratio
• C)relative expenditure ratio
• D)value of marginal product

---

Definitions:

GDP Deflator

An indicator for the pricing levels of all new, domestically produced, consumable goods and services within an economy.

Population

The total number of people living in a specific area or country at a given time.

Net Domestic Product

The sum of the market value of all domestically produced goods and services in a country during a given time period, subtracting the loss in value from depreciation.

Indirect Business Taxes

Taxes levied on the production, sale, or consumption of goods and services, such as sales tax or value-added tax (VAT), indirectly paid by consumers.