As a Consumer Moves Along an Indifference Curve

question 30

Multiple Choice

As a consumer moves along an indifference curve

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

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Definitions:

Liabilities

Financial obligations or debts owed by a business to external parties or individuals, which must be repaid at a future date.

Wages Owed

The total amount of compensation that a company owes to its employees for work performed but not yet paid.

Cash Account

A ledger account that represents the amount of cash a company has on hand at any given time.

Credit

An accounting entry that either decreases assets or increases liabilities and equity on a company's balance sheet, or an entry on the right side of a double-entry bookkeeping system that represents the addition of value to an account.