If There Are Two Goods, If a Consumer Prefers More

question 22

True/False

If there are two goods, if a consumer prefers more of each good to less, and if she has a diminishing marginal rate of substitution, then her preferences are convex.

---

Definitions:

Internal Validation

The process of seeking or achieving a sense of validation or approval from oneself rather than from external sources.

Experimental Method

A scientific approach used to test hypotheses under controlled conditions.

Causal Variable

A causal variable is a factor that brings about change in another variable or set of variables, establishing a cause-and-effect relationship.

Correlational Method

A research technique that establishes the relationship (not necessarily causal) between two variables, traditionally denoted x and y, by measuring both variables in a sample of participants.