The Indifference Curves in Figure 21

question 13

Multiple Choice

The indifference curves in Figure 21.1 slope upward because:

• A) a higher wage is necessary in order to compensate someone for getting more years of education.
• B) as people achieve higher levels of education, they generally receive higher wages.
• C) all indifference curves slope upward.
• D) education is an inferior good.

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Definitions:

Variable Manufacturing Overhead

Costs that fluctuate with the level of production output, such as utilities and supplies used in the manufacture of a product.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent or salaries.

Fixed Manufacturing Overhead

Costs that remain constant regardless of the level of production or output in a manufacturing environment.