The Absolute Value of Mar's MRS at His Current Consumption

question 16

Multiple Choice

The absolute value of Mar's MRS at his current consumption bundle is greater than 3. (That is, ) . Mars has convex preferences and is currently consuming positive amounts of both goods.

• A) Taking away some of good 1 and giving Mars 3 units of good 2 for each unit of good 1 taken away will necessarily make him worse off.
• B) Taking away some of good 1 and giving Mars 3 units of good 2 for each unit of good 1 taken away will necessarily make him better off.
• C) Giving Mars some of good 1 and taking away 3 units of good 2 for each unit of good 1 he is given will necessarily make him worse off.
• D) Giving Mars some of good 1 and taking away 3 units of good 2 for each unit of good 1 he is given will necessarily make him better off.
• E) More than one of the above is true.

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Definitions:

Trustee Functions

The roles and responsibilities carried out by a trustee, typically involving managing assets held in trust on behalf of beneficiaries.

Bankruptcy

A legal status for individuals or entities that cannot repay the debts they owe to creditors, leading to a court-managed distribution of assets to creditors.

Farming Business

An enterprise engaged in the cultivation of crops and/or the raising of animals for the purpose of producing food, fiber, and other agricultural products.

Chapter 12

A bankruptcy provision designed for "family farmers" or "family fishermen" to devise a plan to repay all or part of their debts.