Economists use "indifference curves" to indicate individuals' preferences. These curves are parallel to each other and do not intersect. Which of the following statements is true? A) The further away an indifference curve is from the origin at (0,0), the lower is the individual's happiness. B) On a downward-sloping indifference curve, the points lower down (towards the right-hand-side) on the curve are preferred by the individual. C) The closer an indifference curve is to the origin at (0,0), the higher is the individual's happiness. D) The further away an indifference curve is from the origin at (0,0), the higher is the individual's happiness.
Economists use "indifference curves" to indicate individuals' preferences. These curves are parallel to each other and do not intersect. Which of the following statements is true? A) The further away an indifference curve is from the origin at (0,0), the lower is the individual's happiness. B) On a downward-sloping indifference curve, the points lower down (towards the right-hand-side) on the curve are preferred by the individual. C) The closer an indifference curve is to the origin at (0,0), the higher is the individual's happiness. D) The further away an indifference curve is from the origin at (0,0), the higher is the individual's happiness.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 1SQ
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Economists use "indifference curves" to indicate individuals' preferences. These curves are parallel to each other and do not intersect. Which of the following statements is true?
A) The further away an indifference curve is from the origin at (0,0), the lower is the individual's happiness.
B) On a downward-sloping indifference curve, the points lower down (towards the right-hand-side) on the curve are preferred by the individual.
C) The closer an indifference curve is to the origin at (0,0), the higher is the individual's happiness.
D) The further away an indifference curve is from the origin at (0,0), the higher is the individual's happiness.
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