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WGU Global Economics for Managers Exam - Topic 2 Question 9 Discussion

What are properties of a typical indifference curve? (Choose TWO.)
A) Higher indifference curves are preferred to lower ones. and C) Indifference curves do not cross.
B) Indifference curves can intersect.
D) Indifference curves slope upward.

WGU Global Economics for Managers Exam - Topic 2 Question 9 Discussion

Actual exam question for WGU's Global Economics for Managers exam
Question #: 9
Topic #: 2
[All Global Economics for Managers Questions]

What are properties of a typical indifference curve? (Choose TWO.)

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Suggested Answer: A, C

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.


Contribute your Thoughts:

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I have a vague memory of discussing how indifference curves can’t intersect, but I’m not completely confident about it.
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Lina
5 days 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.
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Buck
10 days ago
I’m not sure about B and C, but I feel like indifference curves shouldn’t cross because that would imply inconsistent preferences.
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Fallon
15 days ago
I remember that higher indifference curves are generally preferred, so I think A is definitely one of the answers.
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