{"id":57186,"date":"2024-04-16T00:57:39","date_gmt":"2024-04-16T00:57:39","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=57186"},"modified":"2024-04-16T00:57:39","modified_gmt":"2024-04-16T00:57:39","slug":"match-the-following-list-i-list-ii-a-convexity-of-the-indifference-curve-to-origin-1-indifference-curve-analysis-b-quantity-of-certain-goods-sacrificed-for-a-large-quantity-of-other-goods-2-consu","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/match-the-following-list-i-list-ii-a-convexity-of-the-indifference-curve-to-origin-1-indifference-curve-analysis-b-quantity-of-certain-goods-sacrificed-for-a-large-quantity-of-other-goods-2-consu\/","title":{"rendered":"Match the following. List-I List-II a. Convexity of the indifference curve to origin 1. Indifference curve analysis b. Quantity of certain goods sacrificed for a large quantity of other goods 2. Consumer&#8217;s equilibrium c. Equality of the ratio of the marginal utilities with that of the prices of the two goods 3. Substitutability\/Complementarity of the two goods d. Separation of substitution and income effects from the total price effect 4. Marginal rate of substitution"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;a-4, b-2, c-1, d-3&#8243; option2=&#8221;a-3, b-4, c-2, d-1&#8243; option3=&#8221;a-3, b-1, c-4, d-2&#8243; option4=&#8221;a-1, b-3, c-2, d-4&#8243; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is:<\/p>\n<ul>\n<li>a-3, b-1, c-4, d-2<\/li>\n<\/ul>\n<p>Here is a brief explanation of each option:<\/p>\n<ul>\n<li><strong>a. Convexity of the indifference curve to origin<\/strong><\/li>\n<\/ul>\n<p>The convexity of the indifference curve to origin means that the consumer is willing to give up less of one good to obtain more of another good, the more of the first good he already has. This is because the marginal utility of a good declines as the consumer consumes more of it.<\/p>\n<ul>\n<li><strong>b. Quantity of certain goods sacrificed for a large quantity of other goods<\/strong><\/li>\n<\/ul>\n<p>The quantity of certain goods sacrificed for a large quantity of other goods is called the marginal rate of substitution. It is the amount of one good that a consumer is willing to give up to obtain one more unit of another good.<\/p>\n<ul>\n<li><strong>c. Equality of the ratio of the marginal utilities with that of the prices of the two goods<\/strong><\/li>\n<\/ul>\n<p>The equality of the ratio of the marginal utilities with that of the prices of the two goods is called the consumer&#8217;s equilibrium. It is the point at which the consumer is maximizing his utility, given his budget constraint.<\/p>\n<ul>\n<li><strong>d. Separation of substitution and income effects from the total price effect<\/strong><\/li>\n<\/ul>\n<p>The separation of substitution and income effects from the total price effect is called the Slutsky equation. It is a mathematical equation that allows us to decompose the total price effect into a substitution effect and an income effect.<\/p>\n<p>I hope this helps! Let me know if you have any other questions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;a-4, b-2, c-1, d-3&#8243; option2=&#8221;a-3, b-4, c-2, d-1&#8243; option3=&#8221;a-3, b-1, c-4, d-2&#8243; option4=&#8221;a-1, b-3, c-2, d-4&#8243; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-57186","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Match the following. List-I List-II a. Convexity of the indifference curve to origin 1. Indifference curve analysis b. Quantity of certain goods sacrificed for a large quantity of other goods 2. Consumer&#039;s equilibrium c. Equality of the ratio of the marginal utilities with that of the prices of the two goods 3. Substitutability\/Complementarity of the two goods d. Separation of substitution and income effects from the total price effect 4. Marginal rate of substitution<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/match-the-following-list-i-list-ii-a-convexity-of-the-indifference-curve-to-origin-1-indifference-curve-analysis-b-quantity-of-certain-goods-sacrificed-for-a-large-quantity-of-other-goods-2-consu\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Match the following. List-I List-II a. Convexity of the indifference curve to origin 1. 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List-I List-II a. Convexity of the indifference curve to origin 1. Indifference curve analysis b. Quantity of certain goods sacrificed for a large quantity of other goods 2. Consumer's equilibrium c. Equality of the ratio of the marginal utilities with that of the prices of the two goods 3. Substitutability\/Complementarity of the two goods d. Separation of substitution and income effects from the total price effect 4. Marginal rate of substitution","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/match-the-following-list-i-list-ii-a-convexity-of-the-indifference-curve-to-origin-1-indifference-curve-analysis-b-quantity-of-certain-goods-sacrificed-for-a-large-quantity-of-other-goods-2-consu\/","og_locale":"en_US","og_type":"article","og_title":"Match the following. List-I List-II a. Convexity of the indifference curve to origin 1. Indifference curve analysis b. Quantity of certain goods sacrificed for a large quantity of other goods 2. Consumer's equilibrium c. Equality of the ratio of the marginal utilities with that of the prices of the two goods 3. Substitutability\/Complementarity of the two goods d. Separation of substitution and income effects from the total price effect 4. 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