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  3. Finance Glossary
  4. Terms Beginning With I
  5. Indifference Curve

Indifference Curve

Definition of 'Indifference Curve'

Alternative combinations of two goods, or one good and one bad (e.g. return on investment and risk on that investment) which are equally acceptable to the investor. That is, the alternatives provide the same level of utility.

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Related Terms

Market Demand CurveSupply CurveExpectations Hypothesis of the Term Structure of Interest Rates (Yield Curve)Imperfectly Competitive FirmLaffer CurveLiquidity-Preference Hypothesis of the Term Structure of Interest RatesLong-Run EquilibriumLong-Run Total Cost CurveMarket Segementation Hypothesis of the Term Structure of Interest RatesMinimum Efficient ScaleShort-Run EquilibriumYield Curve

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