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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.
Transcribed Image Text:Angela's biological
survival constraint
12
Feasible frontier:
Angela and Bruno
combined
2.5
24
Angela's hours of free time
Bushels of grain
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