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1. The marginal rate of substitution measures the distance between one indifference curve and the next one. True or False?
2. Cindy has the preference given by U(x,y)=min[x,y]
A. Cindy's indifference curves are smooth (that is, they have no kinks)
B. More than one of the other answers is correct
C. Cindy's preferences are not transitive.
D. Cindy prefers bundle (2,100) to bundle (1,1000)
E. Cindy prefers less to more for both goods
3. The utility function U=X+Y and U=X+Y+1 will both rank bundles of goods X and Y identically. True or False?
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