Question 1

Consumers' preference are described by

Accepted Answer

A)  indifference curves. 
B)  budget lines. 
C)  their wealth. 
D)  price level in the economy. 
A)  indifference curves. 
B)  budget lines. 
C)  their wealth. 
D)  price level in the economy.

Question 2

An increase in p will ________ the VMPL schedule and will lead to ________in the quantity of low-skill labor demanded.

Accepted Answer

A)  shift up; an increase 
B)  shift up; a decrease 
C)  shift down; an increase 
D)  shift down; a decrease 
A)  shift up; an increase 
B)  shift up; a decrease 
C)  shift down; an increase 
D)  shift down; a decrease

Question 3

Which of the following will increase consumption for a normal good?

Accepted Answer

A)  an increase in income. 
B)  a decrease in income. 
C)  an increase in the price of a complement. 
D)  a decrease in the price of a substitute. 
A)  an increase in income. 
B)  a decrease in income. 
C)  an increase in the price of a complement. 
D)  a decrease in the price of a substitute.

Question 4

When labor suppliers choose how much time to allocate to wage labor and to other activities seeking to maximize utility ,their constraint is given by

Accepted Answer

A)  the time constraint S + H ≤ T 
B)  the cash constraint that C ≤ wS + M. 
C)  C + wH ≤ wT + M. 
D)  all of the above. 
A)  the time constraint S + H ≤ T 
B)  the cash constraint that C ≤ wS + M. 
C)  C + wH ≤ wT + M. 
D)  all of the above.

Question 5

The income elasticity of demand is________.

Accepted Answer

A)  always positive. 
B)  always negative. 
C)  positive for a normal good and negative for an inferior good. 
D)  negative for a normal good and positive for an inferior good. 
A)  always positive. 
B)  always negative. 
C)  positive for a normal good and negative for an inferior good. 
D)  negative for a normal good and positive for an inferior good.

Question 6

When consumers receive distributions of free rise,the quantities of rise they consume are likely to ________ and by ________ the quantity of rice received in the distribution.

Accepted Answer

A)  rise; more than 
B)  rise; the same amount as 
C)  rise,less than 
D)  the quantities of rise they consume are not going to change 
A)  rise; more than 
B)  rise; the same amount as 
C)  rise,less than 
D)  the quantities of rise they consume are not going to change

Question 7

If one worker suppliers more hours of labor when wage increases,we can conclude that ________.

Accepted Answer

A)  the substitution effect is greater than the income effect 
B)  the income effect is greater than the substitution effect 
C)  the income effect is the same as the substitution effect 
D)  this worker is not efficient. 
A)  the substitution effect is greater than the income effect 
B)  the income effect is greater than the substitution effect 
C)  the income effect is the same as the substitution effect 
D)  this worker is not efficient.

Consumers' preference are described by

An increase in p will the VMPL schedule and will lead to in the quantity of low-skill labor demanded.

Which of the following will increase consumption for a normal good?

When labor suppliers choose how much time to allocate to wage labor and to other activities seeking to maximize utility ,their constraint is given by

The income elasticity of demand is________.

When consumers receive distributions of free rise,the quantities of rise they consume are likely to and by the quantity of rice received in the distribution.

If one worker suppliers more hours of labor when wage increases,we can conclude that ________.

What Is Development Economics Good for

Well-Being

Economic Growth

Economic Growth Theory in Historical Perspective

Poverty,Inequality and Vulnerability

Houesholds

Domestic Markets for Goods and Services

Labor Markets

Investment and Financial Markets

International Markets and General Equilibrium

Institutions and Cooperation

Policy Governance and Political Economy

Policy Analysis

Targeted Transfer Programs

Workfare

Agricultural Market Interactions and Reforms

Infrastructure Policies and Programs

Education

Agricultural Research and Extension

Microfinance

Public Health, Health Care and Health Insurance

Filters

Exam 6: Consumption, Time Allocation and Production Choices

Consumers' preference are described by

An increase in p will ________ the VMPL schedule and will lead to ________in the quantity of low-skill labor demanded.

Which of the following will increase consumption for a normal good?

When labor suppliers choose how much time to allocate to wage labor and to other activities seeking to maximize utility ,their constraint is given by

The income elasticity of demand is________.

When consumers receive distributions of free rise,the quantities of rise they consume are likely to ________ and by ________ the quantity of rice received in the distribution.

If one worker suppliers more hours of labor when wage increases,we can conclude that ________.

What Is Development Economics Good for

Well-Being

Economic Growth

Economic Growth Theory in Historical Perspective

Poverty,Inequality and Vulnerability

Houesholds

Domestic Markets for Goods and Services

Labor Markets

Investment and Financial Markets

International Markets and General Equilibrium

Institutions and Cooperation

Policy Governance and Political Economy

Policy Analysis

Targeted Transfer Programs

Workfare

Agricultural Market Interactions and Reforms

Infrastructure Policies and Programs

Education

Agricultural Research and Extension

Microfinance

Public Health, Health Care and Health Insurance

Filters

An increase in p will the VMPL schedule and will lead to in the quantity of low-skill labor demanded.

When consumers receive distributions of free rise,the quantities of rise they consume are likely to and by the quantity of rice received in the distribution.