The Property of Diminishing Marginal Rate of Substitution Implies That

question 52

Multiple Choice

The property of diminishing marginal rate of substitution implies that

• A) the more current consumption the consumer has, the less future consumption she is willing to give up for one more unit of current consumption.
• B) the less current consumption the consumer has, the less future consumption she is willing to give up for one more unit of current consumption.
• C) the more current consumption the consumer has, the more future consumption she is willing to give up for one more unit of current consumption.
• D) the indifference curves are bowed away from the origin.
• E) the indifference curves have a constant slope.

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Definitions:

Programmed Decision

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