The assumption that "the farther from the origin an indifference curve is, the higher the level of utility it indicates" implies "more is better."
False

Question

Quizplus · Accepted Answer

The assumption that the farther from the origin an indifference curve is, the higher the level of utility it indicates is true, but it does not necessarily imply that "more is better." This assumption is based on the idea of consumer preferences and the satisfaction they derive from consuming goods and services, which does not necessarily follow a linear relationship with the quantity consumed. It is possible for a consumer to prefer a lower quantity of a certain good over a higher quantity, depending on their individual preferences and needs. Therefore, the assumption does not necessarily imply that "more is better" in all cases.

The Assumption That "The Farther from the Origin an Indifference