Assume that a consumer's indifference curve is bowed inward and satisfies the other three properties of indifference curves. As the consumer moves from left to right along the horizontal axis, the consumer's marginal rate of substitution
a. increases.
b. decreases.
c. remains constant.
d. increases, then decreases.
b
You might also like to view...
If M = $100, Y = $500 and P = $2, then V is equal to
A) 0.10 B) 1. C) 10. D) 50.
In a perfectly competitive industry, the firm's marginal revenue curve is
A) downward sloping. B) upward sloping. C) vertical. D) horizontal.
Refer to the information provided in Table 22.5 below to answer the question(s) that follow.
Table 22.5
Refer to Table 22.5. If 2014 is the base year, the inflation rate between 2014 and 2015 is
A. 3.9%. B. 6.1%. C. 7.4%. D. 10.2%.
When estimating incremental environmental costs, the survey approach
a. relies on expert knowledge about abatement technology b. is a more direct means of gathering abatement cost data than the engineering approach c. finds the level of abatement expenditures based on least-cost technology d. suffers from no inherent biases associated with polluting sources