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Budget Line & Optimal Choice · Question 48 of 67

Question 48

MediumOriginal question

Read the two statements and choose the correct option.

I. Each indifference curve shows a different level of satisfaction.

II. All bundles on one indifference curve cost the same.

Options for question 48

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. I is true: the map has one curve per level of satisfaction.

  2. II is false: equal cost describes a budget line; bundles on one indifference curve can cost very different amounts.

Concept
What an indifference curve shows
Typical time
70 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.