Which One of the Following Assumptions About Indifference Curves Is

question 62

Multiple Choice

Which one of the following assumptions about indifference curves is incorrect?

• A)Consumers usually prefer more to less.
• B)Consumers' preferences are transitive.
• C)The marginal rate of substitution declines along an indifference curve.
• D)Declining MRS implies that indifference curves are concave to the origin.

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Definitions:

Interact

To act in such a way as to have an effect on another; to act reciprocally or influence each other.

Egocentric Predicament

The problem that seems to follow from the view that we know only our own minds directly—that is, that we might never know anything or anyone else.

Selfish Beings

Pertains to individuals primarily concerned with their own interests and benefits, often at the expense of others.

External World

The reality existing outside an individual's mind, perceived through the senses.