Question

a) The indifference curve can be used to indicate the supply of labour available at different .wage rates
b) The indifference curve technique can be used to analyse some taxation problems

• A. Both (a) and (b) are true
• B. (a) is true, but (b) is false
• C. (a) is false, but (b) is true
• D. Both (a) and (b) are false

Answer 1

The correct option is D Both (a) and (b) are false

Both statements are false as the indifference curve just compares two goods with each other keeping some value constant such as income. Taxation could be analysed but not taxation problems.