# Indifference Curve MCQ Questions & Answers

Indifference Curve MCQs : This section focuses on the "Indifference Curve". These Multiple Choice Questions (MCQs) should be practiced to improve the Indifference Curve skills required for various interviews (campus interview, walk-in interview, company interview), placement, entrance exam and other competitive examinations.

Question 1

An indifference curve is related to:

A. Choices and preferences of consumer
B. Prices of goods X and Y
C. Consumerâ€™s income
D. Total utility from goods X and Y

Question 2

An Indifference curve slope down towards right since more of one commodity and less of another result in:

A. Decreasing expenditure
B. Maximum satisfaction
C. Greater satisfaction
D. Same satisfaction

Question 3

As we move down the indifference curve left to right, the slope of indifference curve tends to:

A. Unity
B. Zero
C. Decline
D. Rise

Question 4

Hicks and Allen believed that utility:

A. Can be measured in cardinal numbers
B. Can be measured in ordinal numbers
C. Cannot be measured
D. Cannot be expressed

Question 5

In indifference map, higher IC indicates:

A. Lower level of satisfaction
B. Higher level of satisfaction
C. Same level of satisfaction
D. Either higher or same level of satisfaction

Question 6

Moving along an indifference curve the

A. Consumers prefer some of the consumption points to others.
B. Marginal rate of substitution for a good increases as more of the good is consumed.
C. Marginal rate of substitution is constant.
D. Consumers do not prefer one consumption point to another.

Question 7

The slope indifference curve is equal to:

A. One
B. Marginal utility
C. Marginal rate of substitution
D. None of these

Question 8

Two indifference curves cannot cut each other because:

A. They represent those combinations of two goods that give the same satisfaction
B. They slope downwards.
C. Each indifference curve represents a different level of satisfaction
D. They are convex to origin

Question 9

Which of the following is not the property of indifference curve:

A. Higher the indifference curves higher the level of satisfaction
B. Indifference curve is downward sloping
C. Indifference curve is concave to origin
D. Two indifference curves cannot intersect each other