When the Marginal Rates of Substitution for Two Consumers Differ

question 29

Multiple Choice

When the marginal rates of substitution for two consumers differ:

• A)the indifference curves of the consumers are tangent.
• B)mutually beneficial trade cannot take place.
• C)consumers' bargaining skills will determine their position on the contract curve.
• D)trade will benefit one of the consumers and harm the other consumer.

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Definitions:

Stratified Sample

A sampling method that divides a population into subgroups, or strata, and selects members from each stratum to ensure representation.

Convenience Sample

A sampling technique where participants are selected based on their accessibility and proximity to the researcher.

Convenience Sample

A non-random sample selected because of its accessibility and ease of inclusion in the study, not representing the whole population accurately.

Judgment Sample

A sampling technique where the samples are selected based on the judgment of the researcher, rather than random selection.