Intuitively,the Marginal Rate of Substitution for X with Y Tells

question 62

Multiple Choice

Intuitively,the marginal rate of substitution for X with Y tells us:

• A) how much Y a consumer needs to compensate them for a one-unit decrease in X.
• B) how much X must be taken away from a consumer to compensate them for a one-unit increase in Y.
• C) how much X a consumer needs to compensate them for a one-unit decrease in Y.
• D) how much more Y the consumer will buy if the price of Y increases by $1.

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Definitions:

Land

Refers to natural resources or the surface of the earth, including fields, forests, and minerals, which are used for production.

Henry George

Henry George was a 19th-century economist and social philosopher known for his advocacy for a single tax on land value to address social inequalities.

Single Tax

Single tax refers to a fiscal policy proposal where one type of tax, often on land value, replaces all other taxes to simplify the tax system and address economic inequality.

Free and Nonreproducible

Goods or services that are available without cost but cannot be duplicated or created again in the exact form.