Why Is the Preferred Path to the Highest Utility One

question 103

Multiple Choice

Why is the preferred path to the highest utility one in which both items are economic "goods"?

• A) Since indifference curves are not thick,there is only one path to the highest utility.
• B) "Goods" produce an upward-sloping curve and is the only way up to the maximization point.
• C) "Goods" reduce economic "bads" and permit movement to the maximization point from all four directions.
• D) People are unlikely to willingly pay in order to feel worse.
• E) The combination of "goods" produces both an upward- and a downward-sloping curve that converge at the maximization point.

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