Economics (AS & A Level) · Oct / Nov 2023 · Paper 33 · Question 2
9708Indifference curves and budget lines
An indifference curve is typically drawn with a convex shape. Which economic concept explains the reason for this convex shape?
- Aallocative efficiency
- Bdiminishing marginal rate of substitution
- CPareto optimality
- Dthe equi-marginal principle
As printed in the paper
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Correct answer: B. diminishing marginal rate of substitution
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