If Two Goods Are Both Desirable and Preferences Are Convex

question 9

Multiple Choice

If two goods are both desirable and preferences are convex, then

• A)there must be a kink in the indifference curves.
• B)indifference curves must be straight lines.
• C)if two bundles are indifferent, then an average of the two bundles is worse than either one.
• D)the marginal rate of substitution is constant along indifference curves.
• E)None of the above.

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Definitions:

Minimization

The action of reducing or downplaying the significance, value, or extent of something.

Defense Mechanism

Psychological strategies used unconsciously by individuals to protect themselves from anxiety or unacceptable thoughts and feelings.

Crisis Intervention

A short-term assistance provided to individuals facing an emergency or traumatic event, aimed at minimizing the impact and preventing long-term psychological trauma.

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits.