Indifference curves close to the origin are ________ those farther from the origin because of ________.
A)better than; transitivity
B)worse than; nonsatiation
C)better than; completeness
D)worse than; transitivity

Question

Quizplus · Accepted Answer

Indifference curves close to the origin are worse than those farther from the origin because of the principle of nonsatiation, which states that more is preferred to less. Indifference curves farther from the origin represent higher levels of utility or satisfaction, which is preferred to lower levels of utility or satisfaction represented by indifference curves closer to the origin.

Indifference Curves Close to the Origin Are ________ Those Farther