Which one of the following statements is false?
A)Indifference curves are negatively sloped.
B)A preference map consists of a series of indifference curves.
C)Indifference curves are bowed out from the origin.
D)The marginal rate of substitution is the magnitude of the slope of an indifference curve.
E)The marginal rate of substitution increases as a consumer moves up along an indifference curve for ordinary goods.

Question

Quizplus · Accepted Answer

Indifference curves can be straight lines or curved, but they are never bowed out from the origin. This is because they represent the combinations of two goods that give a consumer the same level of satisfaction, and if one good is inferior, the indifference curve for that good will slope towards the origin.

Which One of the Following Statements Is False