Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
indifference curve indifference map income effect substitution effect | An infinite set of indifference curves in which each curve represents a different level of utility or satisfaction Shows all the combinations of two goods where the consumer is indifferent (gets the same level of satisfaction) (labor) Higher wages mean that the value of work has increased, and the opportunity costs of leisure are higher, hence work is substituted for leisure (labor) Higher wages mean that you can maintain the same standard of living by working fewer hours. The impact on labor supply is generally negative |