Exam 4: Consumer Choice

An interior solution to a consumer's utility maximization problem implies

The marginal rate of transformation of y for x represents

Indifference curves cannot intersect.

Economists assume consumers select a bundle of goods that maximizes their well-being subject to

For which of the following pairs of goods would most people likely have convex indifference curves?

-The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. As the price of snacks rises, Bobby's utility

An individual's demand curve for a good can be derived by measuring the quantities selected as

With respect to consuming food and shelter, two consumers face the same prices and both claim to be in equilibrium. We therefore know that

The rate at which a consumer must give up y to get one more x is equal to

If Toby buys two goods and the prices of both goods increase by 50%

What is the difference between ordinal and cardinal measurement?

Indifference curves are downward sloping because of the assumption of

-The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks assuming he has $20 to spend on these goods. Which of the following points are on Bobby's price-consumption curve?

An optimum that occurs as a corner solution

In Spain, people are considered organ donors unless they explicitly indicate they do not want to be. In the United States, people are only considered organ donors if they explicitly indicate they wish to be. Behavioral economics would suggest that

Perfect substitutes

In behavioral economics, the term salience refers to

If a consumer weakly prefers pizza to hot dogs, and weakly prefers hot dogs to chicken, then he ________ pizza ________ chicken.

Indifference curves close to the origin are ________ those farther from the origin because of ________.

A consumer's willingness to trade one good for another can be expressed by the consumer's