Which of the following statements is not true with regard to the standard properties of indifference curves ?
Correct answer: B. indifference curves are bowed outward
- A. Indifference curves are downward sloping
- B. indifference curves are bowed outward
- C. Indifference curves do not cross each other
- D. Higher indifference curve is preferred to lower ones
Explanation
Standard indifference curves are convex to the origin, often described as bowed inward, because the marginal rate of substitution usually diminishes. They are normally downward sloping, non-crossing, and higher curves represent greater satisfaction.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
Which of the following is true about the consumer's optimum consumption bundle? At the optimum ?
If an increase in a consumer's income causes the consumer to increase his quantity demand of a good, then the good is ?
The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ?
indifference curves for perfect substitutes are ?
The limit on the consumption bundles that a consumer can afford is known as ?
For a competitive firm, its short run supply curve is ______ and its long run supply curve is _____?