What Happens to the Absolute Value of Marginal Rate of Substitution

question 164

Multiple Choice

What happens to the absolute value of marginal rate of substitution as you move down a convex (bowed toward the origin) indifference curve?

• A)Increases
• B)Decreases
• C)Remains constant
• D)Could increase or decrease

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Definitions:

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A personality type characterized by a pervasive pattern of emotional instability and anxiety.

Karen Horney

A German psychoanalyst known for her work in the psychology of women and for founding the theory of neurosis based on social and cultural factors, rather than simply biological ones.

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