{"id":56278,"date":"2024-04-16T00:41:55","date_gmt":"2024-04-16T00:41:55","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=56278"},"modified":"2024-04-16T00:41:55","modified_gmt":"2024-04-16T00:41:55","slug":"the-magnitude-of-the-slope-of-an-indifference-curve-is-the","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-magnitude-of-the-slope-of-an-indifference-curve-is-the\/","title":{"rendered":"The magnitude of the slope of an indifference curve is the"},"content":{"rendered":"

[amp_mcq option1=”Marginal rate of substitution” option2=”Rate of increasing opportunity cost” option3=”Marginal rate of utility of income” option4=”Rate of relative price” correct=”option1″]<\/p>\n

The correct answer is A. Marginal rate of substitution.<\/p>\n

The marginal rate of substitution (MRS) is the rate at which a consumer is willing to give up one good in exchange for another. It is measured as the ratio of the marginal utility of the two goods. The MRS is negative and diminishing, which means that a consumer is willing to give up less of a good as they have more of it.<\/p>\n

The slope of an indifference curve is equal to the MRS. This is because the slope of an indifference curve measures the rate at which a consumer is willing to substitute one good for another while remaining at the same level of utility.<\/p>\n

The other options are incorrect.<\/p>\n