Post Utme Futa 2018 Economics Question 6

Practice objective / multiple choice question 6 from the 2018 Post Utme Futa Economics examination.

Post Utme Futa 2018 Economics Objective / Multiple Choice

Question 6 POST_UTME_FUTA • 2018 • ECONOMICS • objective

A consumer's indifference curve is downward sloping and convex to the origin. What does this imply about the consumer's marginal rate of substitution (MRS)?

A. The MRS is cons\tant and equal to the slope of the indifference curve.

Correct Answer B. The MRS is decrea\sing as the consumer moves along the indifference curve.

C. The MRS is increa\sing as the consumer moves along the indifference curve.

D. The MRS is zero and the consumer is indifferent between the two goods.

Correct Answer

Correct Option:

The MRS is decrea\sing as the consumer moves along the indifference curve.

This is Post Utme Futa 2018 Economics Question 6. It is one of the objective questions from the 2018 Post Utme Futa Economics examination.

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