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Refer to the Diagram, in Which the Downsloping Lines Are

Question 118

Multiple Choice

Refer to the diagram, in which the downsloping lines are budget lines and I1, I2, and I3 comprise an indifference map. The combinations of products M and N indicated by points 1, 2, and 5 are such that Refer to the diagram, in which the downsloping lines are budget lines and I<sub>1</sub>, I<sub>2</sub>, and I<sub>3</sub><sub> </sub>comprise an indifference map. The combinations of products M and N indicated by points 1, 2, and 5 are such that   A)  point 2 yields more utility than either 1 or 5. B)  points 1 and 5 yield more utility than point 2. C)  points 1, 2, and 5 yield equal amounts of utility. D)  the levels of utility associated with these three points cannot be compared.


A) point 2 yields more utility than either 1 or 5.
B) points 1 and 5 yield more utility than point 2.
C) points 1, 2, and 5 yield equal amounts of utility.
D) the levels of utility associated with these three points cannot be compared.

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