Maximising Satisfaction – Indifference Curves (Grade 10 NSC Matric Economics): Quizzes
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Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What does an indifference curve show?
What does an indifference curve show?
Combos of 2 goods giving equal satisfaction
What is true about all points on the same indifference curve?
What is true about all points on the same indifference curve?
They provide equal satisfaction
How does an indifference curve slope?
How does an indifference curve slope?
Downward from left to right, convex to origin
What happens when a consumer's income increases?
What happens when a consumer's income increases?
Move to higher indifference curve
What does an indifference curve further from the origin represent?
What does an indifference curve further from the origin represent?
Higher level of satisfaction
Can two indifference curves representing different satisfaction levels intersect?
Can two indifference curves representing different satisfaction levels intersect?
No, they can never cross each other
What does the convex shape of indifference curves reflect?
What does the convex shape of indifference curves reflect?
Diminishing marginal rate of substitution
What do the axes on an indifference curve graph show?
What do the axes on an indifference curve graph show?
Horizontal: good x quantity; Vertical: good y
What happens to get more of one good whilst maintaining equal satisfaction?
What happens to get more of one good whilst maintaining equal satisfaction?
Must give up some of the other good
Why do indifference curves slope downward?
Why do indifference curves slope downward?
Increasing one good requires decreasing other