Question : 21) The marginal rate of substitution of one good for : 1226103

21) The marginal rate of substitution of one good for another is measured by moving

A) along an indifference curve.

B) among different indifference curves.

C) along a budget line.

D) among different budget lines.

E) along a demand curve.

22) The magnitude of the slope of an indifference curve is the

A) marginal rate of substitution.

B) rate of relative prices.

C) marginal utility of substitution.

D) marginal rate of utility of income.

E) rate of increasing opportunity cost.

23) The magnitude of the slope of an indifference curve at a particular point measures the

A) total utility.

B) marginal utility.

C) marginal rate of substitution.

D) total rate of substitution.

E) demand.

24) Normally shaped indifference curves are bowed towards the origin of the graph. The reason for this shape is

A) that indifference curves farther away from the origin represent higher levels of utility.

B) diminishing marginal rate of substitution.

C) the law of demand.

D) that the marginal rate of substitution is constant along an indifference curve.

E) the principle of diminishing marginal rate of relative price.

25) As Sam moves rightward along his indifference curve, his marginal rate of substitution for the good on the horizontal axis

A) is diminishing.

B) is increasing.

C) remains constant.

D) shows the change in his income.

E) first increases and then diminishes.

26) When the indifference curve is steep, the consumer has a

A) high marginal rate of substitution for the good on the horizontal axis.

B) low marginal rate of substitution for the good on the horizontal axis.

C) large budget.

D) small budget.

E) steep budget line.

27) Moving along an indifference curve, if a consumer requires a large amount of the good measured along the y-axis to make up for one unit less of the good measured on the x-axis, then

A) total utility is increasing.

B) the marginal rate of substitution is low and the indifference curve is flat.

C) the marginal rate of substitution is low and the indifference curve is steep.

D) the marginal rate of substitution is high and the indifference curve is steep.

E) the marginal rate of substitution is high and the indifference curve is flat.

28) Moving along an indifference curve, if a consumer requires a small amount of the good measured along the y-axis to make up for one unit less of the good measured on the x-axis, then

A) total utility is increasing.

B) the marginal rate of substitution is low and the indifference curve is flat.

C) the marginal rate of substitution is low and the indifference curve is steep.

D) the marginal rate of substitution is high and the indifference curve is steep.

E) the marginal rate of substitution is high and the indifference curve is flat.

29) Suppose the quantity of burgers is measured on the horizontal axis and the quantity of bags of French fries is measured on the vertical axis. The marginal rate of substitution for burgers is

A) the ratio of burgers consumed to bags of fries consumed.

B) the ratio of bags of fries consumed to burgers consumed.

C) the rate at which a person is willing to give up burgers to get more bags of fries while staying on the same indifference curve.

D) the rate at which a person is willing to give up bags of fries to get more burgers while staying on the same indifference curve.

E) the number of burgers consumed minus the number of bags of fries consumed.

30) Suppose the quantity of burgers is on the horizontal axis and the quantity of bags of French fries is measured on the vertical axis and Carol’s indifference curves are drawn in the graph. As Carol consumes more

A) burgers, moving along an indifference curve her marginal rate of substitution for burgers decreases.

B) bags of fries, moving along an indifference curve her marginal rate of substitution for burgers decreases.

C) burgers and bags of fries moving along an indifference curve, Carol reaches her best affordable point.

D) of either good, moving along an indifference curve her marginal rate of substitution for burgers increases.

E) of both goods, moving from one indifference curve to a higher indifference curve, her marginal rate of substitution definitely does not change.