Which of the following statements are correct?
i. Indifference curve is upward sloping
ii. Indifference curve is convex to the origin.
iii. MRS is the slope of indifference curve.
iv. MRSxy diminishes as the quantity of X increases.

ii, iii, iv

The correct answer is Option 3: ii, iii, iv

Here's an evaluation of the statements about indifference curves and Marginal Rate of Substitution (MRS):

i. Indifference curve is upward sloping: This statement is incorrect. Indifference curves are typically downward sloping, reflecting the trade-off between two goods where more of one good can compensate for less of the other.

ii. Indifference curve is convex to the origin: This statement is correct. Indifference curves are generally convex to the origin due to the Law of Diminishing Marginal Rate of Substitution (MRS).

iii. MRS is the slope of indifference curve: This statement is correct. The Marginal Rate of Substitution (MRS) represents the slope of the indifference curve at any given point.

iv. MRSxy diminishes as the quantity of X increases: This statement is correct. According to the Law of Diminishing Marginal Rate of Substitution, as you increase the quantity of good X, the amount of good Y you are willing to give up for an additional unit of X decreases.