MCQOPTIONS
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| 1. |
Statement I: The slope of an indifference curve is the Marginal Rate of Substitution in the consumption (MRSc), which is increasing.Statement II: The slope of the budget line is ratio of the prices of two goods and is the Marginal Rate of Substitution in exchange (MRSe) |
| A. | Statement I and II are correct. |
| B. | Statement I is correct, but II is incorrect. |
| C. | Statements I and II are incorrect. |
| D. | Statement I is not correct, but II is correct. |
| Answer» E. | |