A worker's utility is increasing in wages received and decreasing in the effort exerted. What is the shape of the indifference curve in the wage-effort space?
Tap an option to check your answer.
4 marks, −1MicroeconomicsConsumer preferences and utilityIndifference curves and their propertiesEasyabout 1 min
JNU SIS 2013 Question 15: Consumer preferences and utility
Answer and worked solution
Checking your account…
Plain-text version
A worker's utility is increasing in wages received and decreasing in the effort exerted. What is the shape of the indifference curve in the wage-effort space? (A) Upward sloping (B) Downward sloping (C) Straight line parallel to the X -axis (D) Straight line parallel to the Y -axis
Consumer preferences and utility has come up 93 times in 7 exams since 2007.
What this question tests
This question is on Indifference curves and their properties, part of Consumer preferences and utility in Microeconomics.
What indifference curves look like for goods, bads and neutrals, and why they slope down and never cross.
TestStop has 11 past-paper questions on this subtopic.
Similar questions from other papers
- Which among the following is not an assumption of Indifference Curve?
- Madhu's utility function is given by U=max (2C,3F), where C represents the amount of cloth and F represents the amount of food. Her preferences DO NOT satisfy which one…
- Which of the following is NOT the assumption of the Revealed Preference Hypothesis?
- If the demand function is given as P = 110 - Q² and market equilibrium is attained at P₀ = 29 and Q₀ = 9, calculate the consumer surplus.
- A Constant Elasticity of Substitution (CES) utility function is given as: U_(CES)(z₁,z₂) = 1/δ(z₁^δ + z₂^δ) where z₁ and z₂ are two goods, and δ ≤ 1, δ ≠ 0. A…
Question from the JNU SIS 2013 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.