Question :
Figure 10-4
8) Refer to Figure 10-4. What the marginal rate : 1387722
Figure 10-4
8) Refer to Figure 10-4. What is the marginal rate of substitution between g and h?
A) cookie.
B) cookie.
C) 2 cookies.
D) 3 cookies.
9) Refer to Figure 10-4. What is the marginal rate of substitution between h and j?
A) cookie.
B) cookie.
C) 2 cookies.
D) 4 cookies.
10) The absolute value of the slope of the budget constraint is equal to
A) the marginal rate of substitution between the two goods in question.
B) the price of good on the vertical axis divided by the price of the good on the horizontal axis.
C) the price of good on the horizontal axis divided by the price of the good on the vertical axis.
D) quantity of the good on the vertical axis divided by the quantity of the good on the horizontal axis.
11) A consumer’s utility-maximizing combination of goods is given by the bundle that corresponds to the point on
A) the indifference curve that intersects the horizontal axis.
B) the indifference curve that intersects the vertical axis.
C) an indifference curve that is tangent to the budget constraint.
D) the budget constraint where it intersects one of the axes.
Figure 10-5
12) Refer to Figure 10-5. The consumer can afford consumption bundles
A) r, s, t and u.
B) r, s, v and u.
C) s, v and u only.
D) s, v, t and u.
13) Refer to Figure 10-5. Which of the following statements is true?
A) The consumer gets more utility from bundle r than from bundle v.
B) The consumer gets less utility from bundle w than from bundle v.
C) Bundles r, s, t and u all cost the same.
D) Bundles r and w are not affordable.
14) Refer to Figure 10-5. Suppose the price of pizza increases while the price of hamburger remains constant. Then, the consumer’s
A) indifference curve becomes more concave away from the origin.
B) indifference curve becomes straighter.
C) budget constraint moves inward toward the origin on the pizza axis while the hamburger intercept remains the same.
D) budget constraint moves outward away from the origin on the pizza axis while the hamburger intercept remains the same.
15) Aisha and Debbie both purchase milk and bread at the same Quik Mart. They have different tastes for milk and bread and different incomes. They both buy some milk and some bread, but they buy considerably different quantities of the two goods. Which of the following statements is true, given that Aisha and Debbie are utility-maximizers?
A) In equilibrium, their marginal rate of substitution between milk and bread is the same.
B) In equilibrium, their marginal rate of substitution between milk and bread is higher for the person with the higher income.
C) In equilibrium, the marginal rate of substitution between milk and bread is greater for the person who prefers milk more than bread.
D) No statement can be made about their respective marginal rates of substitution without their budget constraint/indifference curve diagrams.
Figure 10-6
16) Refer to Figure 10-6. A change in income is shown in
A) Panel A.
B) Panel B.
C) Panel C.
D) none of the above panels.
17) Refer to Figure 10-6. A change in the price of candy only is shown in
A) Panel A.
B) Panel B.
C) Panel C.
D) none of the above panels.
