Indifference Curves Are Generally Convex to the Origin Because Of

question 38

Multiple Choice

Indifference curves are generally convex to the origin because of:

• A)the law of diminishing marginal utility.
• B)substitution and income effects.
• C)limitations of the economy in producing an ever-increasing amount of the commodities in question.
• D)the instability of individual human wants.
• E)none of the above.

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Definitions:

Deferred Revenue

Income received by a company for goods or services yet to be provided; recognized as a liability until the service or product is delivered.

Journal Entry

A record in accounting that represents a transaction where debits and credits are equal, documenting financial transactions in the ledger.

Depreciation Expense

The deliberate apportionment of a tangible asset's cost over the period it is expected to be useful.

Useful Life

The estimated time period a fixed asset is expected to be usefully productive for a business.