Multiple Choice Questions on Assertion A A lower indifference curve represents a higher level of satisfaction Reason R Accor........... for Common University Entrance Test (CUET) Preparation

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Multiple Choice Questions

Assertion A A lower indifference curve represents a higher level of satisfaction Reason R Accor...........

Introductory Microeconomics Consumer Behavious and Demand
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    Assertion (A): A lower indifference curve represents a higher level of satisfaction.

    Reason (R): According to the Indifference Curve Approach, utility is an ordinal concept, that is, it can be ranked and not measured.

     

    Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

     

    Incorrect Answer

    Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
     

    Incorrect Answer

    Assertion (A) is true, but Reason (R) is false.

     

    Incorrect Answer

    Assertion (A) is false, but Reason (R) is true.

    Correct Answer
    Explanation:

    Option (4) is correct.

    Explanation: A higher indifference curve represents a higher level of satisfaction. It is because of the assumption that preferences are monotonic. Therefore, the assertion is incorrect and the reason is true.

     

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