If the marginal rate of substitution is 3 (in absolute terms), then we know that: The household is willing to give up 3 units of consumption to get the next unit of leisure. The household prefers to...

Extracted text: If the marginal rate of substitution is 3 (in absolute terms), then we know that: The household is willing to give up 3 units of consumption to get the next unit of leisure. The household prefers to get 3 units of consumption together with every unit of leisure. The household is willing to give up 3 units of leisure to get the next unit of consumption. 3 units of consumption are identical to 3 units of leisure.


Extracted text: If the indifference curve shifts and the MRS increases (in absolute value) for every bundle, it means: Households value leisure more than they did. Households now earn higher real wages than they did. Households now earn lower real wages than they did. O Households value consumption more than they did.