Figure: Preferences and Indifference Curves Refer to the Figure

question 14

Multiple Choice

Figure: Preferences and Indifference Curves Refer to the figure. According to the indifference curves for Kiwis and Nuts, which statement is TRUE?

• A) Indifference curve U₁ provides higher utility than indifference curve U₂.
• B) Bundle A is preferred to Bundle B.
• C) Bundle C is preferred to Bundle D.
• D) Bundle C is preferred to Bundle B.

---

Definitions:

Permissive

An adjective describing an approach or policy that allows or tolerates behaviors that might be restricted in more controlled environments.

Adopted Children

Individuals who have been legally taken and raised by parents who are not their biological parents.

Authoritarian

An authoritarian refers to a governing or leadership style characterized by absolute or blind obedience to authority, as against individual freedom and related to centralized power.

Authoritative

A parenting style characterized by high demands and high responsiveness, where parents set clear standards for their children but also encourage independence and are open to communication.