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.

---

Definitions:

Phenotype

Describes the set of observable characteristics or traits of an organism as a result of the interaction of its genotype with the environment.

Eye Color

A genetic trait determined by multiple genes and the levels of melanin in the iris, influencing the coloring of the eye.

Antagonistic Drugs

Substances that block or reduce the effect of a neurotransmitter or other chemical in the brain, often used in the treatment of various medical conditions.

Agonist

A substance that activates receptors in the brain or body, mimicking the effects of naturally occurring neurotransmitters, hormones, or other substances.