QUESTION 7 A curve that represents all combinations of market baskets that provi
ID: 2439458 • Letter: Q
Question
QUESTION 7
A curve that represents all combinations of market baskets that provide the same level of utility to a consumer is called
a budget line.
an isoquant.
an indifference curve.
a demand curve.
1 points
QUESTION 8
A concave (bowing away from the origin) indifference curve defined over two goods violates which of the following assumptions from the theory of consumer behavior?
transitivity.
mixtures are preferred to extremes.
more is preferred to less.
all of the above.
none of the above.
1 points
QUESTION 9
The slope of an indifference curve reveals:
that preferences are complete.
the marginal rate of substitution of one good for another good.
the ratio of market prices.
that preferences are transitive.
none of the above
a.a budget line.
b.an isoquant.
c.an indifference curve.
d.a demand curve.
Explanation / Answer
1) A curve that represents all combinations of market baskets that provide the same level of utility to a consumer is called : c) an indifference curve.
2) A concave (bowing away from the origin) indifference curve defined over two goods violates which of the following assumptions from the theory of consumer behavior? : b) mixtures are preferred to extremes.
The axiom of strict convexity refers to mixtures is preferred to extremes . This follows the property of diminishing MRS .
3) The slope of an indifference curve reveals: b) the marginal rate of substitution of one good for another good.
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