Question 1

The budget line indicates a constraint on a consumer's ability to purchase two goods.

Accepted Answer

A) True 
 B)False

Question 2

Marginal utility is negative when total utility is increasing.

Accepted Answer

A) True 
 B)False

Question 3

In the Case in Point on P.O.W. camps, the point was made that:

Accepted Answer

A)  people may attempt to maximize utility in normal situations, but when under the stress of being a prisoner such "rational" behavior disappears. 
B)  people generally tend to behave in ways that are consistent with utility-maximizing behavior. 
C)  tastes and preferences are irrelevant when considering the indifference curves of people from different cultures. 
D)  French and British prisoners of war were grateful for any provisions they received and tended to consume all of what they were given in similar quantities. 
A)  people may attempt to maximize utility in normal situations, but when under the stress of being a prisoner such "rational" behavior disappears. 
B)  people generally tend to behave in ways that are consistent with utility-maximizing behavior. 
C)  tastes and preferences are irrelevant when considering the indifference curves of people from different cultures. 
D)  French and British prisoners of war were grateful for any provisions they received and tended to consume all of what they were given in similar quantities.

Question 4

As a consumer moves upward along an indifference curve, giving up some of X (on the horizontal axis) to get more of Y (on the vertical axis), his or her marginal rate of substitution of X for Y:

Accepted Answer

A)  becomes infinite. 
B)  goes from negative to positive. 
C)  increases. 
D)  decreases. 
A)  becomes infinite. 
B)  goes from negative to positive. 
C)  increases. 
D)  decreases.

The budget line indicates a constraint on a consumer's ability to purchase two goods.

Marginal utility is negative when total utility is increasing.

In the Case in Point on P.O.W. camps, the point was made that:

As a consumer moves upward along an indifference curve, giving up some of X (on the horizontal axis) to get more of Y (on the vertical axis), his or her marginal rate of substitution of X for Y:

Welcome to Economics

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

The Macroeconomic Perspective

Economic Growth

Unemployment

Inflation

The International Trade and Capital Flows

The Aggregate Demandaggregate Supply Model

The Keynesian Perspective

The Neoclassical Perspective

Money and Banking

Monetary Policy and Bank Regulation

Exchange Rates and International Capital Flows

Government Budgets and Fiscal Policy

The Impacts of Government Borrowing

Macroeconomic Policy Around the World

International Trade

Globalization and Protectionism

Filters

Exam 7: Cost and Industry Structure

The budget line indicates a constraint on a consumer's ability to purchase two goods.

Marginal utility is negative when total utility is increasing.

In the Case in Point on P.O.W. camps, the point was made that:

As a consumer moves upward along an indifference curve, giving up some of X (on the horizontal axis) to get more of Y (on the vertical axis), his or her marginal rate of substitution of X for Y:

Welcome to Economics

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

The Macroeconomic Perspective

Economic Growth

Unemployment

Inflation

The International Trade and Capital Flows

The Aggregate Demandaggregate Supply Model

The Keynesian Perspective

The Neoclassical Perspective

Money and Banking

Monetary Policy and Bank Regulation

Exchange Rates and International Capital Flows

Government Budgets and Fiscal Policy

The Impacts of Government Borrowing

Macroeconomic Policy Around the World

International Trade

Globalization and Protectionism

Filters