WGU C211 - COMPETENCY 3: QUESTIONS WITH
CORRECT ANSWERS 2026
Four S properties S of S an S indifference S curve S - S CORRECT S ANSWER S -
(1) Higher S indifference S curves S are S preferred S to S lower S ones. S People S usually S prefer S to
S consume S more Sgoods S rather S than S less.
(2) Indifference S curves S are S downward S sloping. S The S slope S of S an S indifference S curve
S reflects S the S rate S a St S which S the S consumer S is S willing S to S substitute S one S good S for
S the S other.
(3) Indifference S curves S do S not S cross.
(4) Indifference S curves S are S bowed S inward. S The S slope S of S an S indifference S curve S is S the
S marginal S rate S o Sf S substitution—the S rate S at S which S the S consumer S is S willing S to S trade
S off S one S good S for S the S other.
Marginal S rate S of S substitution. S - S CORRECT S ANSWER S -
The S rate S at S which S the S consumer S is S willing S to S trade S off S one S good S for S the S other
S (i.e. S how S much S Pep Ssi S the S consumer S requires S to S be S compensated S for S a S one-unit
S reduction S in S pizza S consumption)
Budget S constraint S - S CORRECT S ANSWER S -The S consumption S bundles S that S the S consumer S can
S afford.
How S might S a S budget S constraint S be S impacted S by S an S increase S in S income? S - S CORRECT
S ANSWER S - SAdditional S bundles S could S be S consumed S with S an S increase S in S income.
Graphical S elements S needed S to S determine S a S consumer's S optimal S point S of
S consumption S - SCORRECT S ANSWER S -Indifference S curve S and S budget S constraint.
How S is S a S consumer's S optimal S point S of S consumption S determined S precisely? S What S is
S the S condition S th Sat S must S be S met? S - S CORRECT S ANSWER S -
CORRECT ANSWERS 2026
Four S properties S of S an S indifference S curve S - S CORRECT S ANSWER S -
(1) Higher S indifference S curves S are S preferred S to S lower S ones. S People S usually S prefer S to
S consume S more Sgoods S rather S than S less.
(2) Indifference S curves S are S downward S sloping. S The S slope S of S an S indifference S curve
S reflects S the S rate S a St S which S the S consumer S is S willing S to S substitute S one S good S for
S the S other.
(3) Indifference S curves S do S not S cross.
(4) Indifference S curves S are S bowed S inward. S The S slope S of S an S indifference S curve S is S the
S marginal S rate S o Sf S substitution—the S rate S at S which S the S consumer S is S willing S to S trade
S off S one S good S for S the S other.
Marginal S rate S of S substitution. S - S CORRECT S ANSWER S -
The S rate S at S which S the S consumer S is S willing S to S trade S off S one S good S for S the S other
S (i.e. S how S much S Pep Ssi S the S consumer S requires S to S be S compensated S for S a S one-unit
S reduction S in S pizza S consumption)
Budget S constraint S - S CORRECT S ANSWER S -The S consumption S bundles S that S the S consumer S can
S afford.
How S might S a S budget S constraint S be S impacted S by S an S increase S in S income? S - S CORRECT
S ANSWER S - SAdditional S bundles S could S be S consumed S with S an S increase S in S income.
Graphical S elements S needed S to S determine S a S consumer's S optimal S point S of
S consumption S - SCORRECT S ANSWER S -Indifference S curve S and S budget S constraint.
How S is S a S consumer's S optimal S point S of S consumption S determined S precisely? S What S is
S the S condition S th Sat S must S be S met? S - S CORRECT S ANSWER S -
