The introduction of community indifference curves into our trading example focuses attention on the nation's:
A) Income level
B) Resource prices
C) Tastes and preferences
D) Productivity level

Question

Quizplus · Accepted Answer

Community indifference curves represent the collective preferences and tastes of a community or nation. Therefore, the introduction of community indifference curves into our trading example would focus attention on the nation's preferences and tastes. Choice A is incorrect because income level is not directly related to community indifference curves. Choice B is incorrect because resource prices are not the primary determinant of community indifference curves. Choice D is incorrect because productivity level does not impact preferences and tastes.

The Introduction of Community Indifference Curves into Our Trading Example