Start practising
Practice mode Consumer Theory vs. Real Consumers

What is the slope at any point on an indifference curve called?

Correct answer C. The marginal rate of substitution

Explanation

The slope shows the rate at which a consumer is willing to give up one good for another while staying equally satisfied. Economists call this rate the marginal rate of substitution.

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

More Consumer Theory vs. Real Consumers questions

See all
Question 01 Consumer Theory vs. Real Consumers

At what point does a consumer make the optimal purchase of any two goods?

Correct answer B. Where the consumer reaches the highest indifference curve while remaining on the budget constraint

Open question
Question 02 Consumer Theory vs. Real Consumers

With good X on the horizontal axis and good Y on the vertical axis, indifference curves are bowed inward. Moving from a bundle with plenty of X to one with plenty of Y, what happens to the marginal rate of substitution of Y for X (the slope of the indifference curve)?

Correct answer B. It rises

Open question
Advertisement

Discussion

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.