Question

An indifference curve shows all the alternative combinations of two consumption goods that... Select one: a. can be produced by a given country. b. can be produced without exhausting natural resources. c. can be produced with a given set of resources and technology. d. yield the same total utility. e. can be purchased with a given budget at given prices. f. equate the marginal utilities of these goods and, therefore, make the consumer indifferent between them.

Answer 1

Answer: Option (d) is correct.

Explanation:

An indifference curve is a graphical representation of two goods which reflects all the combination of two goods to be consumed by the individual.

Indifference curves are convex to the origin and two indifference curves never intersect each other.

All the combination of two goods on a single indifference gives equal level of satisfaction and yield the same level of total utility.