Household Choices Flashcards
(4 cards)
1
Q
The indifference curve of ordinary good is
A
Curved
2
Q
The indifference curve of perfect substitutes is
A
Negative linear
3
Q
The indifference curve for perfect compliments is
A
Negative right angle
4
Q
The assumption that the magnitude of the slope of an indifference curve decreases moving to the right along an indifference curve is known as the assumption of
A
A diminishing marginal rate of substitution
