CHAPTER & 1 Practice Quiz ker explanation of the correct answers, visit the Web site at www.cengage.com/economics/ indifference An curve consists of quantity Combinations of two goods that yield equal marginal utilities. b. negative marginal utilities. 4 the same price ratios. d the same total satisfaction. The absolute value of the slope of an indiffer- ence curve is called the 2. b. C marginal rate of transformation. transitivity slope. indifference rate of preference. d. marginal rate of substitution. 3. The slope of the indifference curve for goods X and Y is called the marginal a. product rate. rate of transformation. b. c. rate of substitution. d. rate of utility. 7. Assume P, is the price of good X on the zontal axis and P, is the price vertical axis. The slope of the budget line a PIPY. b. PQIP, Q, c. -PIP d. PIP de 8. Consumer equilibrium occurs where the bulget linc is tangent to the a. lowest possible indifference curve. b. highest possible indifference curve. C. utility-maximizing indifference curve. d. utility-cqualization indifference curse. 9. Only at the point of consumer equilibrium does the marginal rate of substitution (MRS) equal a. the slope of the budget line. b. c. the slope of the indifference curve. the price ratio. d. all of the above. 10 M​