9. An indifference curve is best described as a curve that shows : a) The consum

Question

9. An indifference curve is best described as a curve that shows:

a) The consumption bundles that a consumer does not like

b) The bundles of goods that a consumer has

c) The bundles of goods that a consumer can afford

d) The combinations of goods that gives a consumer the same level of satisfaction

10. Which of the following is NOT a property of indifference curves?

a) Higher indifference curves are preferred to lower ones b) Indifference curves are downward sloping
c) Indifference curves can only cross once
d) Indifference curves are bowed inward

11. A consumer that is optimizing would be likely to:

a) Purchase as much of each good as possible

b) Find the bundle of goods on the highest indifference curve among those on his budget

constraint

c) Be as efficient as possible

d) Spend as little as possible

Explanation / Answer

9. d) The combinations of goods that gives a consumer the same level of satisfaction.

Explanation: A consumer is indifferent to the different combinations of goods on the same indifference curve as all those different combinations give the same level of utility to the consumer. A particular indifference curve reflects a particular utility level.

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