Indifference curves drawn with leisure and income on the axes have negative slopes

Question

Quizplus · Accepted Answer

Indifference curves represent different combinations of leisure and income that provide the same level of satisfaction to an individual. Since people are generally willing to give up some income in exchange for more leisure (and vice versa), the slope of the indifference curve is negative. If the slope were positive, it would mean that the individual would prefer to have less of both goods, which is not rational. Indifference curves can never intersect, which rules out option C. The concept of an inferior good does not apply to leisure, so option D can also be ruled out. Option B is partially true, but it is not the only reason why indifference curves have negative slopes.

Indifference Curves Drawn with Leisure and Income on the Axes