Explain why indifference curves have the following properties: ...

[oliviahorn72]

Explain why indifference curves have the following properties: (a) downward slope (b) convex to the origin (c) higher curves reflect higher utility (d) non-intersecting
 
  What will be an ideal response?

Question 2

________ is said to exist when the formation of a regional trading group leads to an expansion of trade above pre-group levels.
 
  A) Trade creation
  B) Trade diversion
  C) Trade exclusion
  D) Trade distortion

[mariahkathleeen]

Answer to Question 1

(a) Compensation required for the loss of any one good from the bundle
(b) Bundles with balanced quantities are preferred
(c) More is preferred to less
(d) Maintenance of transitivity of preferences

Answer to Question 2

A