If the marginal rate of substitution is not diminishing, it must mean that tastes violate convexity (assuming that our other assumptions about tastes hold).
Answer the following statement true (T) or false (F)
True
Rationale: The diminishing MRS feature of indifference maps is identical to the convexity assumption when our other assumptions about tastes hold.
Economics
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Effective cooperation among the members of a commercial society is more likely when
A) economic decisions are placed in the hands of democratically-elected committees. B) everyone's income is approximately the same. C) people produce for use rather than for profit. D) prices do not change in response to temporary changes in circumstances. E) property rights are clearly defined.
Economics
A change in the supply of labor will shift the long-run aggregate supply curve.
a. true b. false
Economics