McqMate
| Q. |
An indifference curve measures the same level of - |
| A. | Output from two factors |
| B. | Satisfaction from two commodities |
| C. | Satisfaction from Income and Capital |
| D. | Satisfaction from expenditure and savings |
| Answer» B. Satisfaction from two commodities | |
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Explanation: An indifference curve is a locus of combinations of goods which derive the same level of satisfaction. so that the consumer is indifferent to any of the combination he consumes. If a consumer equally prefers two product bundles, then the consumer is indifferent between the two bundles. The consumer gets the same level of satisfaction (utility) from either bundle. In other words, an indifference curve is the locus of various points showing different combinations of two goods providing equal utility to the consumer |
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