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What are properties of a typical indifference curve? (Choose TWO.)
Suggested Answer: A, C
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In Global Economics for Managers, indifference curves have two key properties: higher curves represent higher utility, and curves do not cross, making options A and C correct.
If curves crossed, preferences would be inconsistent. Higher curves indicate greater satisfaction.
Options B and D violate consumer theory assumptions.
Thus, A and C are correct.
12 comments · newest first
TE
Tegan
2 months ago
Definitely A and C. If they crossed, it would confuse preferences!
LE
Leota
2 months ago
I agree! A and C make sense. Curves can't cross, right?
PA
Pamella
2 months ago
I think A and C are correct. Higher curves mean more utility.
GE
Geraldine
2 months ago
Totally agree, higher curves are better!
ZO
Zona
2 months ago
Wait, they slope upward? That seems off.
RO
Ronna
2 months ago
Nope, they can't cross! That's a key property.
MA
Maddie
3 months ago
I thought indifference curves could intersect?
CI
Ciara
3 months ago
Higher indifference curves are definitely preferred!
HU
Huey
3 months ago
I have a vague memory of discussing how indifference curves can’t intersect, but I’m not completely confident about it.
LI
Lina
3 months ago
I practiced a question similar to this, and I think it was clear that indifference curves slope downward, so maybe that's part of it too.
BU
Buck
3 months ago
I’m not sure about B and C, but I feel like indifference curves shouldn’t cross because that would imply inconsistent preferences.
FA
Fallon
4 months ago
I remember that higher indifference curves are generally preferred, so I think A is definitely one of the answers.