A) a series of points that represent levels of equal satisfaction. B) a series of demand curves. C) a series of supply curves. D) a map that shows contour lines. E) a series of indifference curves. A) a series of points that represent levels of equal satisfaction. B) a series of demand curves. C) a series of supply curves. D) a map that shows contour lines. E) a series of indifference curves.

Exam 9: Possibilities, Preferences, and Choices

Tonya, who is wealth, and Jerome, who is not, both buy orange juice and croissants for lunch at the student cafeteria.Their budget lines are drawn with orange juice on the vertical axis and croissants on the horizontal axis.Choose the correct statement.

(Multiple Choice)

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Question 101

What is a distinguishing characteristic of an inferior good?

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Question 102

For a normal good, the income effect

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Question 103

Use the figure below to answer the following questions. Figure 9.3.3 -Consider an initial budget line labelled RS in Figure 9.3.3.If the budget line becomes RT, the substitution effect is illustrated by the move from point

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Question 104

Let Y = $100, QX = quantity of good X, and QW = quantity of good W, PX = $4 and PW = $5.The budget equation is

(Multiple Choice)

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Question 105

A preference map is

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Question 106

Use the figure below to answer the following questions. Figure 9.1.1 -Shelly's budget line is shown in Figure 9.1.1.Which points are affordable given her income and current prices?

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Question 107

If the price of a normal good rises, the income effect

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Question 108

Use the information below to answer the following questions. Fact 9.3.3 Jim has made his best affordable choice of muffins and coffee. He spends all of his income on 10 muffins at $1 each and 20 cups of coffee at $2 each. Muffins and coffee are ordinary goods. Now the price of a muffin rises to $1.50 and the price of coffee falls to $1.75 a cup. -Refer to Fact 9.3.3.When the price of a muffin rises to $1.50 and the price of coffee falls to $1.75 a cup, Jim

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Question 109

A change in the price of a good has

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Question 110

Use the figure below to answer the following questions. Figure 9.3.1 -Consider the budget line and indifference curve in Figure 9.3.1.If the price of good X is $1 a unit, then the price of good Y is

(Multiple Choice)

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Question 111

Use the figure below to answer the following questions. Figure 9.3.3 -Consider an initial budget line labelled RS in Figure 9.3.3.The budget line becomes RT with

(Multiple Choice)

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Question 112

The initial budget equation for pop (p)and movies (m)is Qp = 20 - 4Qm, and the price of a pop is $5.If the price of a pop falls to $4, what is the new budget equation?

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Question 113

Sara's income is $12 a week.The price of popcorn is $3 a bag, and the price of a smoothie is $3.The opportunity cost of a smoothie is

(Multiple Choice)

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Question 114

The effect of a change in income on buying plans is called the

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Question 115

Use the figure below to answer the following questions. Figure 9.3.1 -Consider the budget line and indifference curve in Figure 9.3.1.If the price of good X is $2 a unit, what is the price of good Y?

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Question 116

Leah consumes at a point on her budget line where her marginal rate of substitution is less than the magnitude of the slope of her budget line.As Leah moves towards her best affordable point, she will move to

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Question 117

Which one of the following statements is true about the indifference curves for two goods that are close but not perfect substitutes?

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Question 118

Jay has an income of $10 to buy peanuts and popcorn.The price of peanuts is $1 a bag and the price of popcorn is $2 a bag.He chooses to consume 5 bags of peanuts and 2 bags of popcorn.What can we say about this consumption choice?

(Multiple Choice)

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Question 119

Which one of the following statements is false?

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Question 120

Showing 101 - 120 of 124

Tonya, who is wealth, and Jerome, who is not, both buy orange juice and croissants for lunch at the student cafeteria.Their budget lines are drawn with orange juice on the vertical axis and croissants on the horizontal axis.Choose the correct statement.

What is a distinguishing characteristic of an inferior good?

For a normal good, the income effect

Use the figure below to answer the following questions. Figure 9.3.3 -Consider an initial budget line labelled RS in Figure 9.3.3.If the budget line becomes RT, the substitution effect is illustrated by the move from point

Let Y = $100, QX = quantity of good X, and QW = quantity of good W, PX = $4 and PW = $5.The budget equation is

A preference map is

Use the figure below to answer the following questions. Figure 9.1.1 -Shelly's budget line is shown in Figure 9.1.1.Which points are affordable given her income and current prices?

If the price of a normal good rises, the income effect

A change in the price of a good has

Use the figure below to answer the following questions. Figure 9.3.1 -Consider the budget line and indifference curve in Figure 9.3.1.If the price of good X is $1 a unit, then the price of good Y is

Use the figure below to answer the following questions. Figure 9.3.3 -Consider an initial budget line labelled RS in Figure 9.3.3.The budget line becomes RT with

The initial budget equation for pop (p)and movies (m)is Qp = 20 - 4Qm, and the price of a pop is $5.If the price of a pop falls to $4, what is the new budget equation?

Sara's income is $12 a week.The price of popcorn is $3 a bag, and the price of a smoothie is $3.The opportunity cost of a smoothie is

The effect of a change in income on buying plans is called the

Use the figure below to answer the following questions. Figure 9.3.1 -Consider the budget line and indifference curve in Figure 9.3.1.If the price of good X is $2 a unit, what is the price of good Y?

Leah consumes at a point on her budget line where her marginal rate of substitution is less than the magnitude of the slope of her budget line.As Leah moves towards her best affordable point, she will move to

Which one of the following statements is true about the indifference curves for two goods that are close but not perfect substitutes?

Jay has an income of $10 to buy peanuts and popcorn.The price of peanuts is $1 a bag and the price of popcorn is $2 a bag.He chooses to consume 5 bags of peanuts and 2 bags of popcorn.What can we say about this consumption choice?

Which one of the following statements is false?

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