9 Questions
The slope of an indifference curve is:
The marginal rate of substitution
In indifference curve analysis, a consumer is assumed to be:
Rational and always maximizing utility
An indifference curve represents:
Combinations of goods that give the same level of satisfaction
Which of the following is NOT an assumption of indifference curve analysis?
Perfect competition in the market
What happens to the slope of an indifference curve as we move along it?
It becomes flatter
Which property is NOT associated with indifference curves?
Represent diminishing returns to scale
According to indifference curve analysis, which of the following is a valid assumption?
Preference is transitive and complete
What happens to the shape of an indifference curve if the consumer's preferences change?
It remains constant
Which property is NOT associated with indifference curves?
They are straight lines
Test your knowledge of indifference curve analysis, where consumers are assumed to have indifference curves representing their preferences, and the slope of the curve indicates the consumer's marginal rate of substitution.
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