Final answer:
Indifference curves do not fill the fourth quadrant of the plane; this statement is false. They are graphed in the first quadrant and represent different combinations of goods offering equal utility. Points on a higher indifference curve offer greater utility.
Step-by-step explanation:
The statement that indifference curves fill the fourth quadrant of the plane is false. Indifference curves are typically graphed in the first quadrant of a two-dimensional graph where both axes represent positive quantities of different goods or services.
Indifference curves illustrate combinations of two goods between which a consumer is indifferent because they provide the same level of utility. For example, Lilly is indifferent between the points A, B, C, and D on the indifference curve Um, since each point offers the same utility level.
Different indifference curves represent different levels of utility. The points on a higher indifference curve, like point F on curve Uh, provide greater utility than points on a lower curve, like points on curve Um.