ECON 312 Exam 2 Question and
answers verified to pass 2025
MRS (Marginal Rate of Substitution) - correct answer Shows how much of
good y a consumer is willing to give up for more good x
Slope of an indifference curve
Completeness - correct answer If A&B are in any two situations, 3
possibilities can be specified:
1. A is preferred to B
2. B is preferred to A
3. A and B are equally attractive
Transitivity - correct answer if "A is preferred to B" and "B is preferred to C"
then "A is preferred to C"
More is better - correct answer All else equal, more of a good is better than
less
Marginal Rate of Transformation (MRT) - correct answer Rate at which goods
can be traded for one another in the marketplace
Interior solution - correct answer positive amounts of both goods
Corner solution - correct answer positive amount of one good and zero of the
other
answers verified to pass 2025
MRS (Marginal Rate of Substitution) - correct answer Shows how much of
good y a consumer is willing to give up for more good x
Slope of an indifference curve
Completeness - correct answer If A&B are in any two situations, 3
possibilities can be specified:
1. A is preferred to B
2. B is preferred to A
3. A and B are equally attractive
Transitivity - correct answer if "A is preferred to B" and "B is preferred to C"
then "A is preferred to C"
More is better - correct answer All else equal, more of a good is better than
less
Marginal Rate of Transformation (MRT) - correct answer Rate at which goods
can be traded for one another in the marketplace
Interior solution - correct answer positive amounts of both goods
Corner solution - correct answer positive amount of one good and zero of the
other
