Higher indifference curves:
A) have lesser levels of utility than lower curves.
B) have greater levels of utility than lower curves.
C) have the same levels of utility as lower curves.
D) may have either lesser or greater levels of utility than lower curves.

Question

Quizplus · Accepted Answer

Indifference curves represent different levels of utility, and higher curves represent higher levels of utility because they indicate a greater level of satisfaction from consuming more of both goods. Therefore, choice B is the correct answer. Choice A is incorrect because higher indifference curves represent higher levels of utility, not lesser levels. Choice C is incorrect because higher indifference curves represent higher levels of utility, not the same levels as lower curves. Choice D is incorrect because higher indifference curves always represent higher levels of utility, not lesser or greater levels randomly.

Higher Indifference Curves