Q339
A higher indifference curve shows
A.
A higher level of satisfaction
AnswerB.
A higher level of production
C.
A higher level of income
D.
None of the above
Answer: Option A
Solution
Answer: Option A
Solution:
A higher indifference curve shows a higher level of satisfaction. A higher indifference curve will represent a higher level of satisfaction than a lower indifference curve. In other words, the combinations which lie on a higher indifference curve will be preferred to the combinations which lie on a lower indifference curve.