Question

A schedule of various combinations of goods which will be equally satisfactory to the consumer is called :

• A. Indifference curve
• B. Iso-quant
• C. Production possibility curve
• D. Marginal utility curve

Hint:

To avoid confusion, associate these key terms:
- Consumer satisfaction \(\rightarrow\) Indifference curve.
- Producer output level \(\rightarrow\) Iso-quant.
- Economy's output \(\rightarrow\) Production Possibility Curve.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
This question requires identifying standard definitions used in consumer behavior and production economics.

Step 3: Detailed Explanation:
Let us analyze each of the choices to determine the correct term:
- Option (A): Indifference curve
An indifference curve represents different combinations of two goods that provide the exact same level of total utility or satisfaction to a consumer.
Since the level of satisfaction is constant along the curve, the consumer is indifferent among any of these combinations.
The tabular representation of these combinations is called an indifference schedule.
This aligns with the definition given in the question.
- Option (B): Iso-quant
An iso-quant is a curve that shows different combinations of two input factors (like labor and capital) that yield the same level of output in production.
This is a production concept, not a consumer utility concept.
- Option (C): Production possibility curve
A Production Possibility Curve (PPC) shows the maximum combinations of two goods that an economy can produce given its resources and technology.
- Option (D): Marginal utility curve
A marginal utility curve shows how the additional utility obtained from consuming each successive unit of a single good decreases (law of diminishing marginal utility).

Step 4: Final Answer:
The schedule representing combinations of goods with equal satisfaction is an indifference curve.
Therefore, the correct choice is Option (A).