As a consumer moves down one of her indifference curves, her satisfaction:
a. falls.
b. rises.
c. remains unchanged.
d. first falls, then levels out.
Ans: c. remains unchanged.
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Assume Bill's income to spend on the two goods in the graph shown is $48, and movie tickets cost $8. If Bill's budget constraint is one of the lines in the graph, which one must it be?
A. A
B. B
C. C
D. It could be line A or B.
The law of demand shows that there is
A) an inverse relationship between price and profit. B) an inverse relationship between price and resource cost. C) an inverse relationship between price and quantity demanded. D) a direct relationship between price and quantity demanded.
Which of the following statements is TRUE?
A. consumption + saving = personal income B. consumption - investment = disposable income C. consumption + saving = disposable income D. consumption - saving = personal income
Countries with high rates of economic growth tend to have
A) a labor force that is more productive. B) a lower life expectancy at birth. C) low rates of technological advancement. D) a declining incidence of business cycle fluctuations.