1.6) The marginal rate of substitution (MRS) can be defined as: Select one or more: a. The amount of one good that the consumer is willing to trade for one unit of the other. b. The ratio of the amounts of two goods. c. The change in the consumer’s utility when one good is substituted for another. d. The absolute value of the slope of the indifference curve.
1.6) The marginal rate of substitution (MRS) can be defined as: Select one or more: a. The amount of one good that the consumer is willing to trade for one unit of the other. b. The ratio of the amounts of two goods. c. The change in the consumer’s utility when one good is substituted for another. d. The absolute value of the slope of the indifference curve.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter2: Choice In A World Of Scarcity
Section: Chapter Questions
Problem 11RQ: What does a production possibilities frontier illustrate?
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Question
Please tell me which of the multiple choices in question 1.6)1.7)1.8) are correct.State only the correct ones please.
1.6)
The marginal rate of substitution (MRS) can be defined as:
Select one or more:
a. The amount of one good that the consumer is willing to trade for one unit of the other.
b. The ratio of the amounts of two goods.
c. The change in the consumer’s utility when one good is substituted for another.
d. The absolute value of the slope of the indifference curve.
1.7)
(SEE ATTACHED PICTURE)
The diagram shows that:
Select one or more:
a. If Angela works 24 hours a day she can still survive.
b. There is a technically feasible allocation where Angela does not work.
c. A new technology that produced more grain would give a larger technically feasible set.
d. If Angela needed less grain to survive the technically feasible set would be smaller.
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