Using Indifference Curve Analysis, an Optimum Is Characterized by

question 137

Multiple Choice

Using indifference curve analysis, an optimum is characterized by

• A) the marginal rate of substitution of one good divided by its price equal to the marginal rate of substitution of the other good divided by its price.
• B) the marginal rate of substitution being equal to one.
• C) the marginal rate of substitution being equal to zero.
• D) the marginal rate of substitution being equal to the ratio of the prices of the two goods.

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Definitions:

Grapheme-Colour Synesthesia

A type of synesthesia in which the person associates numbers and letters with the sensation of seeing colors.

Emotional Synesthesia

A condition in which one type of stimulation evokes the sensation of another, such as the experience of seeing colors when emotions are felt.

Distal Myopia

A condition where distant objects appear blurred due to the eye focusing images in front of the retina.

Distal Stimulus

An object or event in the external world that produces sensory input.