18. Which of the following statements is false? A) A consumer possesses a preference map. B) An indifference curve is a line that shows combinations of goods among which a consumer is indifferent. C) A consumer has only one indifference curve. D) The marginal rate of substitution is the rate at which a consumer will give up good y to get an additional unit of good x and remain on the same indifference curve. E) If the indifference curve is steep, the marginal rate of substitution is high.
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Microeconomics Four-part multiple choice question with an explanation. Give a short explanation for each part regarding how your answer is computed or why your answer is correct.
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Part A. |
Para mi volunteers at a homeless shelter. It takes a lot of her time, and thus she sometimes takes off time from her job to do the volunteer work. Parami's behavior can be explained by: |
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Part B. |
Indifference curves cannot be concave to the origin because: |
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Part C. |
Marginal utility analysis and indifference curve analysis are both used to: |
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Part D. |
Indifference curves: |
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