Indifference Curve

Moving along an indifference curve :

• Consumers prefer some of the consumption points to others.

• The marginal rate of substitution for a good increases as more of the good is consumed.

• The marginal rate of substitution is constant.

• Consumers do not prefer one consumption point to another.

The slope of the indifference curve is equal to which of the following?

• One

• Marginal utility

• Marginal rate of substitution

• None of these

Why is the indifference curve convex to origin?

• Due to the continuous decline of the marginal rate of substitution

• Due to the law of diminishing marginal utility

• Due to monotonic preferences

• Both a and b

Which of the following is not the property of indifference curves?

• The higher the indifference curves, the higher is the level of satisfaction.

• The indifference curve is downward sloping.

• The indifference curve is concave to the origin.

• Two indifference curves cannot intersect each other.

Hicks and Allen believed that utility:

• Can be measured in cardinal numbers

• Can be measured in ordinal numbers

• Cannot be measured

• Cannot be expressed

As we move down the indifference curve from left to right, the slope of the indifference curve tends to which of the following?

• Unity

• Zero

• Decline

• Rise

In the indifference map, a higher IC indicates which of the following?

• The lower level of satisfaction

• The Higher level of satisfaction

• The same level of satisfaction

• Either higher or same level of satisfaction

Two indifference curves cannot cut each other because of which of the following?

• They represent those combinations of two goods that give the same satisfaction.

• The slope is downwards.

• Each indifference curve represents a different level of satisfaction

• They are convex to origin.

An indifference curve is related to which of the following?

• Choices and preferences of the consumer

• Prices of goods X and Y

• Consumer’s income

• Total utility from goods X and Y

An Indifference curve slope down towards the right since more of one commodity and less of another result in which of the following?

• Decreasing expenditure

• Maximum satisfaction

• Greater satisfaction

• Same satisfaction