QUESTIONS 33 THROUGH 44 RELATE TO ECONOMICS
34. Partial information on three baskets containing goods A and B is given in the table below. The
marginal rate of substitution of B for A, (MRS
BA
), at Basket 2 is also provided.
Basket
Units of A
Units of B
MRS
BA
1
?
30
2
50
35
4.0
3
40
40
A consumer’s indifference curves are strictly convex and he claims that he is indifferent between
Baskets 2 and 3. If he is also indifferent between Baskets 1 and 3, the number of units of A in
basket 1 is most likely:
A. equal to 60.
B. less than 60.
C. greater than 60.