Which curve shows all combinations of two goods that give a consumer equal satisfaction?
Indifference curve
An indifference curve is the locus of all combinations of two goods that yield the same level of utility (satisfaction) to the consumer. The consumer is “indifferent” among any of these combinations because they are equally preferred.
The other options describe different concepts: a budget constraint shows combinations of two goods affordable at given prices and income; an isoquant shows combinations of two inputs that produce the same output (a producer concept); and a marginal cost curve shows the cost of producing one extra unit of output.
Hence the correct answer is Indifference curve — option (1).
Similar Questions
What effect will a decrease in demand and an increase in supply have on equilibrium price?
A situation where the expenditure of the government exceeds its revenue is called ______.
Consider the following statements and choose the correct option:
Statement 1: The Production Possibility Frontier (PPF) shows the trade-offs and opportunity costs faced by an economy.
Statement 2: The PPF is used to estimate the government's total revenue and expenditure.
If the price of a product goes up by 10% and, as a result, the quantity demanded falls by 20%, how would you classify the demand?
- Which of the following refers to the extent to which demand for a particular commodity decreases because others are also consuming the same commodity?
- Which of the following statements accurately describes the law of demand in microeconomics?
- Which of the following best defines the concept of "opportunity cost"?
Important Questions from Microeconomics
Which of the following statement is correct?
I. Indifference curves are sloping from left to right.
II. Higher indifference curve gives a higher level of utility.
If in a production process, all inputs are tripled, which of the following statements follows?
I. If the output is tripled, then decreasing returns to scale apply.
II. When the output is doubled, constant returns to scale apply.
III. If the output is more than tripled, then increasing returns to scale apply.
A market, in which there are a large number of firms, homogeneous product, infinite elasticity of demand for an individual firm and no control over price by firms, is termed as________.
If the two goods are substituted, then the indifference curve will be:
Arrange the following market structures in the increasing order of pricing power to firms.
(A) Monopolistic competition
(B) Perfect competition
(C) Duopoly
(D) Monopoly
(E) Oligopoly
Choose the correct answer from the options given below:
