Indifference curve Analysis
Authored by Isha Gangwani
Arts
2nd Grade
Used 14+ times
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12 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is an indifference curve?
What is an indifference curve?
a representation to depict the demand & supply of goods.
a graph to show that the marginal utility of each commodity changes with changes in the price of goods.
a graph that depicts different combinations of two goods that provide a consumer with equal utility and satisfaction.
a representation to show consumer satisfaction in relation to the price of the goods.
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Indifference curve analysis is based on the concept of .............................
Cardinal Utility
Ordinal Utility
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Indifference curves are L-shaped when the
goods are perfect substitutes
goods are perfect complements
Imperfectly substitutable
One good is neutral good
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If the two goods are perfect substitutes, the marginal rate of subsitution is
negative and constant
- 1
+ 1
none of the above
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
The slope of the indifference curve is
Marginal Rate of Substitution
- PX/PY
Marginal Rate of Technical Substitution
None of the above
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
If indifference curves are strictly convex, the consumer's equilibrium is attained where
IC is tangent to the budget line
MRS = PX/PY
both of the above
none of the above
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
As we move downward along an indifference curve, the slope if IC is
increasing
diminishing
constant
zero
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