Author Question: Indifference curves are convex to the origin because of: A) transitivity of consumer preferences. ... (Read 58 times)

vicotolentino · **on:** Jul 1, 2018

Indifference curves are convex to the origin because of:

A) transitivity of consumer preferences.
B) the assumption of a diminishing marginal rate of substitution.
C) the assumption that more is preferred to less.
D) the assumption of completeness.
E) none of the above

Question 2

An investor can acquire shares of stock in Acme Corporation either by purchasing shares on the stock market or by purchasing a bond that is convertible into shares of Acme stock.

After careful study, the investor discovers that she can profit by purchasing the bond, converting it to shares of stock, and selling the stock. This practice is called: A) selling short.
B) arbitrage.
C) profiteering.
D) dumping.
E) none of the above