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:

Assertive

The quality of being self-assured and confident without being aggressive, in expressing one's rights, desires, or opinions.

Domineering

Exhibiting overbearing control or dominance over others, often disregarding the feelings or opinions of others.

Teen Years

The period of life that follows the onset of puberty and precedes legal adulthood; generally considered to span from ages 13 to 19.

Male Sex Hormones

Chemical substances produced primarily by the testes in males that are responsible for the development of male sexual characteristics and reproductive functions; testosterone is a primary example.