Indifference Curves That Cross Would Suggest That

question 393

Multiple Choice

Indifference curves that cross would suggest that

• A)the consumer does not prefer more to less.
• B)the consumer is likely to prefer a redistribution of income from rich to poor.
• C)different individuals have different preferences for the same goods.
• D)the marginal rate of substitution is the same for both indifference curves.

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Definitions:

Net Income

The total profit or loss of a company after all revenues and expenses have been accounted for, often referred to as the bottom line.

Salary Allowances

Additional benefits provided to employees on top of their base salary, which could include housing, transportation, or health benefits.

Voluntary Association

An organization formed by individuals who voluntarily come together to pursue common interests or goals without seeking profit.

Co-Own Business

A business jointly owned by two or more individuals or entities, sharing the responsibilities, profits, and losses.