Question 1

If both prices increases by 50%,

Accepted Answer

A)  budget constraint will be unchanged. 
B)  slope of the budget constraint stay the same. 
C)  slope of the budget constraint will decrease. 
D)  budget constraint will shift outward in a parallel fashion. 
A)  budget constraint will be unchanged. 
B)  slope of the budget constraint stay the same. 
C)  slope of the budget constraint will decrease. 
D)  budget constraint will shift outward in a parallel fashion.

Question 2

Explain why most indifference curves are convex.

Accepted Answer

Diminishing marginal rates of substituti

Question 3

Joe's income is $500,the price of food (F)is $2 per unit,and the price of shelter (S)is $100.Which of the following represents his budget constraint?

Accepted Answer

A)  500 = 2F + 100S 
B)  F = 250 - 50S 
C)  S = 5 - .02F 
D)  All of the above. 
A)  500 = 2F + 100S 
B)  F = 250 - 50S 
C)  S = 5 - .02F 
D)  All of the above.

Question 4

-Max has allocated $100 toward meats for his barbecue.His budget line and indifference map are shown in the above figure.If Max is currently at point d,

Accepted Answer

A)  the absolute value of his MRS is larger than the trade-off offered by the market. 
B)  he is willing to give up more chicken than he has to, given market prices. 
C)  he is not maximizing his utility. 
D)  All of the above. 
A)  the absolute value of his MRS is larger than the trade-off offered by the market. 
B)  he is willing to give up more chicken than he has to, given market prices. 
C)  he is not maximizing his utility. 
D)  All of the above.

Question 5

Which of the following might explain the evidence of an endowment effect in behavioral economics?

Accepted Answer

A)  government regulation 
B)  knowledge and experience 
C)  the federal tax code 
D)  class envy 
A)  government regulation 
B)  knowledge and experience 
C)  the federal tax code 
D)  class envy

If both prices increases by 50%,

Explain why most indifference curves are convex.

Joe's income is $500,the price of food (F)is $2 per unit,and the price of shelter (S)is $100.Which of the following represents his budget constraint?

-Max has allocated $100 toward meats for his barbecue.His budget line and indifference map are shown in the above figure.If Max is currently at point d,

Which of the following might explain the evidence of an endowment effect in behavioral economics?

Introduction

Supply and Demand

Applying the Supply-And-Demand Model

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 4: Consumer Choice

If both prices increases by 50%,

Explain why most indifference curves are convex.

Joe's income is $500,the price of food (F)is $2 per unit,and the price of shelter (S)is $100.Which of the following represents his budget constraint?

-Max has allocated $100 toward meats for his barbecue.His budget line and indifference map are shown in the above figure.If Max is currently at point d,

Which of the following might explain the evidence of an endowment effect in behavioral economics?

Introduction

Supply and Demand

Applying the Supply-And-Demand Model

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters