graph TD;
	   A[Good X] --- B;
	   A --- C[Good Y];
	   D[Indifference Curve] --> E{MRS: "Slope"};

## What does MRS measure? - [x] The amount of one good a consumer gives up to gain another good without losing utility - [ ] The total utility from two goods - [ ] The maximum production capability of a firm - [ ] The sum of consumer debts > **Explanation:** MRS indeed quantifies the trade-off a consumer is willing to make between two goods while maintaining their satisfaction. ## If a consumer's MRS for pizza and soda is 3, what does this mean? - [x] They’re willing to give up 3 sodas for 1 pizza - [ ] They can't make a choice between them - [ ] They want pizza-flavored soda - [ ] They will accept any trade involving pizza > **Explanation:** It states that they value 1 pizza as equivalent to 3 sodas in terms of their utility. ## What curve depicts the MRS? - [ ] Supply curve - [x] Indifference curve - [ ] Demand curve - [ ] Price curve > **Explanation:** Indifference curves represent different combinations of goods that a consumer considers equally desirable. ## The slope of an indifference curve represents what? - [ ] The MRS - [ ] Total utility - [x] Trade-offs between goods - [ ] Price elasticity > **Explanation:** The slope illustrates the trade-offs—a higher slope means greater willingness to substitute one good for another! ## As more of good X is consumed, what happens to MRS according to the law of diminishing MRS? - [ ] It increases - [ ] It stays constant - [x] It decreases - [ ] It becomes infinite > **Explanation:** The law of diminishing MRS suggests that as you consume more of good X, the MRS decreases because you are less willing to give up Y for more X. ## If two goods yield the same utility, how does this affect the MRS? - [ ] It's zero - [ ] It's one - [x] It can't be determined as utility remains constant - [ ] It's infinite > **Explanation:** If goods yield the same utility, the exact MRS can't be determined as preferences will likely shift. ## A negative MRS indicates what? - [ ] A paradox in consumer preference - [ ] Rational behavior in economics - [x] Something is wrong; MRS cannot be negative - [ ] A perfect substitute > **Explanation:** MRS is never negative; it reflects a positive alternative sacrifice a consumer makes. ## What happens to the consumer's utility when the MRS is zero? - [x] They are indifferent to the trade - [ ] They have reached maximum satisfaction - [ ] They are unsatisfied - [ ] They prefer more of both goods > **Explanation:** A zero MRS indicates no preference for substituting one good for another; the consumer is at a point of complete indifference. ## Does MRS consider more than two goods? - [ ] Yes - [ ] Only in perfect competition - [x] No - [ ] Yes, as long as they are similar goods > **Explanation:** MRS is fundamentally about comparing just two goods and doesn't address scenarios with multiple goods. ## What does a diminishing MRS curve look like? - [ ] Flat line - [ ] Steep line - [x] Downward sloping and convex - [ ] Zig-zag line > **Explanation:** A diminishing MRS curve will slope downwards and is convex, depicting that as more of good X is consumed, less of good Y can be traded for it.