Question

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.

विकल्प

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

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

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

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

Answer 1

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

Explanation:

A higher level of satisfaction is represented by a higher indifference curve. It's because preferences are assumed to be monotonic. As a result, the assertion is false and the reason is correct.