Question

Identify the correct pair of items from the following Columns I and II:

Column I	Column II
(1) Monotonic Preferences	(a) Consumer preferences are called monotonic when between any three bundles, consumers always choose a bundle having more of one good and no less of other goods.
(2) Indifference Set	(b) It is a set of those divisions of two goods that offer the consumer the same level of satisfaction so that the consumer is indifferent across any number of combinations in his indifference set.
(3) Indifference Curve	(c) It is a curve showing the different combinations of two goods, each combination offering the same level of satisfaction to the consumer.
(4) Indifference Map	(d) It refers to a set of indifference curves placed in different diagrams for the same type of goods.

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

3 - (c)

Explanation:

Monotonic Preference: Consumer preferences are said to be monotonic when, given a choice between two bundles, consumers always choose the one with more of one good and no less of the other.

Indifference Set: It is a set of two-good combinations that provide the same level of satisfaction to the consumer so that the consumer is indifferent across any number of combinations in his indifference set.

Indifference Curve: It is a curved line. Displaying various combinations of two goods, each offering the same level of satisfaction to the consumer.

Indifference Curve: A curve that is a graphical representation of an indifference set that shows various combinations of two commodities between which a consumer is agnostic.

Indifference Map: It refers to a grouping of indifference curves in a diagram.