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The slope of an indifference curve is measured by:​
Question

The slope of an indifference curve is measured by:

A.

marginal rate of transformation

B.

marginal rate of technical substitution

C.

marginal rate of effective exchange

D.

marginal rate of substitution

Correct option is D

The correct answer is (d) marginal rate of substitution 

Explanation: ​The slope of an indifference curve is measured by marginal rate of substitution.

Information Booster: Here are some other things to know about indifference curves:

  • Indifference curves are convex to the origin
  • No two indifference curves intersect
  • Consumers are more satisfied on indifference curves that are farther from the origin
  • To maximize utility, a consumer will choose to consume on the highest possible IC they can afford
  • The specific shape of indifference curves can be different for every person
  • A set of indifference curves is called an indifference map

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