Question

Who propounded indifference curve analysis ?

• A. Marshall
• B. Pigou
• C. Hicks
• D. Robbins

Hint:

Associate economists with their major contributions. For indifference curves, the key names to remember are Hicks and Allen, who developed the modern ordinal utility approach, as a refinement of earlier work by Edgeworth and Pareto.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Indifference curve analysis is a tool in microeconomics used to study consumer behavior. It shows various combinations of two goods that provide a consumer with an equal level of satisfaction or utility.
Step 2: Detailed Explanation:
The concept of indifference curves was originally developed by Francis Ysidro Edgeworth in 1881 and later refined by Vilfredo Pareto in 1906. However, the modern, comprehensive form of indifference curve analysis was propounded and popularized by Sir John R. Hicks and R.G.D. Allen in the 1930s. Among the given options, Hicks is the correct choice as he was a key figure in developing this theory into its current form.
- Alfred Marshall is known for the cardinal utility approach.
- A.C. Pigou is known for his work in welfare economics.
- Lionel Robbins is known for his definition of economics based on scarcity.
Step 3: Final Answer:
Given the options, J.R. Hicks is the economist credited with propounding the modern indifference curve analysis. Thus, option (C) is correct.