Post Utme Futa 2020 Commerce Question 3

Practice objective / multiple choice question 3 from the 2020 Post Utme Futa Commerce examination.

Post Utme Futa 2020 Commerce Objective / Multiple Choice
Question 3 POST_UTME_FUTA • 2020 • COMMERCE • objective

A consumer has a budget constraint of 100 units of currency and a preference for two goods, A and B. The prices of the goods are 5 units of currency for good A and 10 units of currency for good B. Using the budget constraint and the prices of the goods, calculate the consumer's indifference curve.

Answer Options

Correct Answer A. The indifference curve is a straight line with a slope of -1.
B. The indifference curve is a straight line with a slope of 1.
C. The indifference curve is a curved line with a slope that increases as the quantity of good A increases.
D. The indifference curve is a curved line with a slope that decreases as the quantity of good A increases.
Correct Answer
A
Correct Option:
The indifference curve is a straight line with a slope of -1.

About This Question

This is Post Utme Futa 2020 Commerce Question 3. It is one of the objective questions from the 2020 Post Utme Futa Commerce examination.

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