If an indifference map for a consumer is made up of straight, negatively sloped lines, the marginal rate of substitution ________ as more of the good on the horizontal axis is consumed
A) does not diminish
B) diminishes
C) increases
D) More information is needed to answer the question.
A
You might also like to view...
The federal funds rate is closely tied to many interest rates on many types of loans. Which one is the exception?
a. Auto loan rates b. Adjustable rate mortgages c. Adjustable rate home equity loans d. 30-year Treasury bonds e. Business loans
The first piece of antitrust legislation in the United States to deal with price discrimination was the
a. Clayton Act b. FTC Act c. Cellar-Kefauver Act d. Robinson-Patman Act e. Sherman Antitrust Act
Transfer payments are government grants, subsidies, or gifts to individuals or firms.
What will be an ideal response?
Which of the following achieves the efficient use of a common resource?
a) property rights, individual transferable quotas, and subsidies b) individual transferable quotas and copyrights c) property rights, quotas, and individuals transferable quotas d) property rights, quotas, and subsidies