If the marginal rate of substitution is not diminishing, it must mean that tastes violate convexity (assuming that our other assumptions about tastes hold).
Answer the following statement true (T) or false (F)
True
Rationale: The diminishing MRS feature of indifference maps is identical to the convexity assumption when our other assumptions about tastes hold.
You might also like to view...
Best Lights and Bright Lights are two light bulb suppliers that are competing with each other. If Best Lights announces an upcoming price change next month, it may be signaling to Bright Lights its intent to engage in ________.
A) tacit collusion B) a Stackelberg oligopoly C) a Cournot oligopoly D) a Chamberlin oligopoly
Which of the following is true concerning unilateral transfers in the U.S. balance of payments?
a. Unilateral transfers have been positive since World War II. b. Unilateral transfers have been negative since World War II. c. Unilateral transfers have been negative every year since World War II except during the war in Iraq. d. The United States places tight restrictions on moneys being sent out of the country. e. Developing countries ordinarily place no restrictions on moneys being sent out of their countries.
Which of the following is fully tax deductible (it is either subtracted or excluded from taxable income) under the current tax system of the United States?
a. out-of-pocket medical expenses b. healthcare insurance purchased through one's employer c. healthcare insurance purchased directly by an individual or family d. all of the above
An organization that provides a public good is:
A. DHL Overnight. B. Federal Express. C. the U.S. Post Office. D. the United Parcel Service.