Consider an indifference curve drawn for movies and pizzas. Which of the following statements about this indifference curve is false?
A) As an individual consumes more pizzas, the amount of movies the consumer is willing to give up for an additional pizza increases.
B) If the individual consumes more pizzas, the amount of movies consumed must fall if the consumer is to stay on the same indifference curve.
C) The indifference curve will be convex to the origin, that is, bowed in toward the origin.
D) If the consumer purchases more of movies and pizzas, total utility will increase, but the consumer will be on a new indifference curve that is farther from the origin than the original indifference curve.
A
You might also like to view...
The earnings of a Spanish factory with British owners are
A) counted in Spain's GDP. B) part of Britain's GNP. C) only counted in Britain's GDP. D) only part of Spain's GNP. E) counted in Britain's GDP and are a part of Spain's GNP.
Horizontally summing different supply curves assumes
A) that individual firms cannot influence the good's price. B) that all firms operate in collusion. C) that only firms who volunteer are included in the summation. D) all firms produce the same amount of output.