When the more-is-better principle holds,we assign higher utility values to indifference curves:
A) that are closer to the origin.
B) that are farther from the origin.
C) that are concave.
D) that are L-shaped.

Question

Quizplus · Accepted Answer

When the more-is-better principle holds, people prefer to have more of a commodity rather than less. This means that indifference curves will be farther away from the origin as they reflect higher levels of utility. Therefore, choice B correctly identifies that higher utility values are assigned to indifference curves that are farther from the origin.

When the More-Is-Better Principle Holds,we Assign Higher Utility Values to Indifference