|Following are the features of indifference curve|
|(a) INDIFFERENCE CURVE ALWAYS SLOPES DOWNWARDS FROM LEFT TO RIGHT||
(say apples), quantity of another good (say oranges) must fall so that the total satisfaction (utility) remains same.
|(a) INDIFFERENCE CURVE IS ALWAYS CONVEX TO THE ORIGIN||
|(c) HIGHER INDIFFERENCE CURVE REPRESENTS
HIGHER LEVEL OF SATISFACTION
1. The farther the Indifference curve from the origin, then:
- Lower is the satisfaction level
- Higher is the satisfaction level
- Same satisfaction level will be obtained
- None of the above
Answer: Higher is the satisfaction level
2. What is the shape of IC, when MRS between good X and Y is diminishing?
- Straight line
- Concave to the origin
- Convex to the origin
- None of these
Answer: Convex to the origin
3.Indifference curve shows various possible combinations of two goods that give equal satisfaction to the consumer.