The Assumption That More Is Preferred to Less Explains Why

question 61

Multiple Choice

The assumption that more is preferred to less explains why indifference curves:

• A)that lie closer to the origin represent higher levels of utility.
• B)that lie farther from the origin represent higher levels of utility.
• C)cross frequently.
• D)slope upward and away from the origin.

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Definitions:

Expected Population

An estimation of a population size in the future based on current trends and changes.

GIC

Guaranteed Investment Certificate, a type of Canadian investment that offers a guaranteed rate of return over a fixed period.

Maturity Value

The total amount of principal and interest due to be paid at the end of a loan or investment period.

Compounded Semi-annually

Interest that is calculated and added to the principal amount twice a year, leading to interest being earned on interest.