Multiple choice

Which of the following is a property of an indifference curve?

  1. It is convex to the origin

  2. The marginal rate of substitution is constant as you move along an indifference curve.

  3. Marginal utility is constant as you move along an indifference curve.

  4. Total utility is greatest where the 45 - degree line cuts the indifference curve.

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Indifference curves are convex to the origin due to diminishing marginal rate of substitution. Option B is incorrect - MRS decreases along the curve, it is not constant. Option C is wrong - marginal utility of goods changes as we substitute. Option D has no theoretical basis - total utility is not maximized at the 45-degree intersection.

Keep practicing — related questions