Consider the Following Three Market Baskets If Basket a and Basket B Are on the Same

question 46

Multiple Choice

Consider the following three market baskets. $\begin{array} { c c c } \hline \text { Basket } & \text { Good } x & \text { Good } y \\\hline \mathrm { A } & 2 & 8 \\\mathrm {~B} & 10 & 2 \\\mathrm { C } & 6 & 5 \\\hline\end{array}$
If Basket A and Basket B are on the same indifference curve, preferences satisfy the usual assumptions, and the indifference curves have a diminishing marginal rate of substitution,

• A) Basket C is preferred to Basket A
• B) Basket A is preferred to Basket C
• C) The consumer is indifferent between Basket A and Basket C
• D) There is not enough information to determine how the consumer would rank Basket A relative to Basket C.

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Definitions:

Involuntary Eye Movements

Movements of the eye that are not controlled by the individual, often reflexive responses to stimuli or part of the body's normal physiological function.

Optic Chiasm

is the X-shaped structure located in the brain where the optic nerves partially cross, crucial for visual processing.

Hemisphere

Each of the two halves of the brain, the right hemisphere and the left hemisphere, responsible for different functions and processes.

Nerve Fibers

Long, slender projections of nerve cells that transmit electrical impulses throughout the nervous system.