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On an indifference map, a curve lying farther from the origin represents:
Aa higher level of satisfaction
Ba lower level of satisfaction
Czero level of satisfaction
Dthe same level of satisfaction
Answer & Solution
Correct answer: A. a higher level of satisfaction
1. Combinations on higher indifference curves contain more of one or both goods.
2. Since more goods are preferred to less, a farther curve means greater satisfaction.
3. It is not lower, equal, or zero satisfaction, so those options are wrong.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit II "Theory of Consumer Behaviour", p.13_
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