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Budget Line & Optimal Choice · Question 49 of 67

Question 49

HardOriginal question

Assertion (A): Indifference curves cannot intersect.

Reason (R): A higher indifference curve gives a higher level of satisfaction.

Options for question 49

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. Both are true.

  2. If two curves crossed, the shared bundle would have to be on a higher and a lower level at once. Since higher curves mean more satisfaction (R), that is impossible: R explains A.

Concept
Why indifference curves do not cross
Typical time
100 s
Your time
—
The rule this testsIndifference curves and MRS
Practise this chapter →

Ten questions from Budget Line & Optimal Choice, at your own pace.

Practise this chapter →

Ten questions from Budget Line & Optimal Choice, at your own pace.