As a Consumer Moves Along an Indifference Curve

question 20

Multiple Choice

As a consumer moves along an indifference curve

• A)the combination of goods will vary but the level of utility remains constant.
• B)the combination of goods he prefers will remain constant,but the level of satisfaction will vary.
• C)the combination of goods and the consumer's income level will remain constant.
• D)his level of utility will vary as the combinations of goods varies.
• E)the combination of goods will vary,but the level of money income remains constant.

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Definitions:

Maturity Value

The amount payable to an investor at the end of a debt instrument's life, including both the principal and the interest.

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time or on demand.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Simple Interest

Interest calculated only on the principal amount, or the initial amount of money borrowed or invested, without compounding.