Moving Down Along an Indifference Curve

question 217

Multiple Choice

Moving down along an indifference curve,

• A) the price of the good measured on the vertical axis decreases.
• B) total utility decreases.
• C) the marginal rate of substitution for the good on the horizontal axis decreases.
• D) the slope of the budget line decreases.
• E) the consumer increasingly prefers the new consumption points to the old consumption points.

---

Definitions:

Work in Process

Inventory that includes partially completed goods that are still in the production process.

Wages Payable

An account that records the amounts owed to employees for work performed that has not yet been paid.

Factory Overhead

All indirect costs associated with the production process, such as maintenance, utilities, and management salaries, not directly tied to specific units of product.

Factory Overhead

Costs associated with operating a factory that are not directly tied to the production of goods, such as utilities, maintenance, and management salaries.