Because There Is a _______ Marginal Rate of Substitution of Fringe

question 2

Multiple Choice

Because there is a _______ marginal rate of substitution of fringe benefits for wages,a worker's wage-fringe indifference curves are typically _______:

• A)diminishing; convex to the origin
• B)constant; straight lines
• C)diminishing; concave to the origin
• D)negative; straight lines

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Definitions:

Book Cash

The amount of cash on hand as recorded in the financial records of a company.

Bank Cash

Bank Cash refers to the liquid assets held by a financial institution that is readily available for transactions and immediate withdrawal.

Cheques

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a specified person, out of the drawer's bank account.

Clearing

The process of reconciling purchases and sales of various securities, commodities, or currencies and ensuring the correct transfer of funds.