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Part III: Instructions: Choose the correct answer from the given alternatives.

1. Which one of the following is a property of a standard indifference curve?
A. Indifference curves are downward sloping.
B. Indifference curves intersect with each other.
C. Higher indifference curves represent lower satisfaction.
D. Indifference curves have a positive slope.

2. Which one of the following is derived from the consumer optimum combinations under both the cardinal and ordinal approaches?
A. Indifference map
B. Ordinal approaches
C. Demand curve
D. Cardinal utility theory

3. Which of the following shows the optimal combination of two goods that the consumer can buy when his/her income changes?
A. Income consumption curve
B. Price consumption curve
C. Indifference curves
D. Equilibrium of the consumer

4. A market structure in which there are a few firms is:
A. Perfectly competitive firm
B. Monopolistic competition
C. Oligopoly
D. Monopoly



Answer :

GinnyAnswer

Final answer:

An indifference curve shows combinations of goods yielding the same satisfaction level, sloping downward and being convex. The marginal rate of substitution measures the trade-off rate between goods.


Explanation:

Indifference curves represent combinations of goods that yield the same level of satisfaction to the consumer. They are typically downward sloping and convex, indicating that consumers prefer higher and to the right curves. The marginal rate of substitution (MRS) defines the slope of an indifference curve and represents the rate at which a person is willing to trade one good for another while maintaining constant utility.


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