The ________________________ of X for Y in consumption refers to the amount of Y that a nation is willing to give up to consume an additional unit of X and remain on the same indifference curve.
A)marginal cost
B)production frontier
C)marginal rate of substitution (MRS)
D)marginal rate of transformation (MRT)

Question

Quizplus · Accepted Answer

The concept described in the question is that of the marginal rate of substitution (MRS). The MRS is the amount of one good that a consumer is willing to give up in order to obtain an additional unit of another good, while remaining at the same level of utility. In this case, the question is asking specifically about the MRS of X for Y in consumption, which refers to the amount of good Y that a nation is willing to give up in order to consume an additional unit of X. The other answer choices are not relevant to this concept.

The ________________________ of X for Y in Consumption Refers to the Amount