The marginal rate of substitution is the
A) rate at which the consumer can exchange one good for the other.
B) change in the quantity of one good that just offsets a one-unit change in the consumption of another good such that the total satisfaction remains constant.
C) change in the quantity of one good that changes the utility received by one unit.
D) same thing as the marginal utility of a good.
Answer: B
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Refer to the table below, which shows the ranked preferences of voters for three alternative projects, with "1" being the top preference. In a paired-choice vote between a jail and a stadium:
A. A majority of the voters would favor the jail, 2-to-1
B. A majority of the voters would favor the stadium, 2-to-1
C. A majority of the voters would favor the jail, 3-to-0
D. A majority of the voters would favor the stadium, 3-to-0
Which group is responsible for the policy decision of changing the money supply?
A. Federal Open Market Committee B. Federal Advisory Council C. Office of Management and Budget D. Thrift Advisory Council