Exam 9: Possibilities, Preferences, and Choices

-In the above figure, as Brendan's income rises his consumption bundle moves from point A to point B. This implies that for Brendan, compact discs are good and haircuts are good.

(Multiple Choice)

4.9/5

(40)

Question 21

Suppose you are graphing the quantity of bagels on the vertical axis and the quantity of coffee on the horizontal axis. A household's real income in terms of bagels is the

(Multiple Choice)

4.8/5

(38)

Question 22

Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon. If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy ________ gallons of gas per month.

(Multiple Choice)

4.8/5

(28)

Question 23

During October and November 2008, gasoline prices were falling dramatically making travel by car less expensive but air travel prices were as high as ever. If travel by car is less expensive, and income remains the same, describe the substitution and income effects that occur for travelling by car.

(Multiple Choice)

4.8/5

(30)

Question 24

-Consider the budget line labeled RT in the above figure. What would shift the budget line to RS?

(Multiple Choice)

4.7/5

(39)

Question 25

For a person who consumes only steak and lobster, a fall in either the price of a steak or the price of a lobster shifts the budget line for the two leftward and does not change its slope.

(True/False)

4.8/5

(29)

Question 26

-The MRS of the indifference curves in the above figure

(Multiple Choice)

4.8/5

(28)

Question 27

-The figure above shows a consumer is indifferent between points

(Multiple Choice)

4.9/5

(39)

Question 28

-The figure above shows Sam's budget line. Which of the following formulas represents Sam's budget equation?

(Multiple Choice)

4.8/5

(37)

Question 29

Bob plans to spend $60 per month on DVD movie rentals and CDs. The price of a movie rental is $3 and the price of a CD is $15. If Bob rents 5 DVDs per month, how many CDs can he buy?

(Multiple Choice)

4.8/5

(38)

Question 30

-The above figure gives your budget line between CDs and magazines. If the price of a magazine increased, then the budget line

(Multiple Choice)

4.7/5

(32)

Question 31

If the relative price of pizza in terms of movies is 3, this means that

(Multiple Choice)

4.9/5

(38)

Question 32

The marginal rate of substitution is

(Multiple Choice)

4.8/5

(41)

Question 33

-Given the budget line in the above figure, which of the following combinations of pizza and milk are affordable?

(Multiple Choice)

4.9/5

(41)

Question 34

When two goods are perfect substitutes, their indifference curves are straight lines.

(True/False)

4.8/5

(40)

Question 35

-Lizzie's budget line is shown in the figure above. If Lizzie's income is $20, which of the following formulas represents her budget equation?

(Multiple Choice)

4.8/5

(34)

Question 36

Which of the following statements about the marginal rate of substitution is NOT correct?

(Multiple Choice)

4.9/5

(30)

Question 37

What is the meaning of the term "marginal rate of substitution"?

(Essay)

4.8/5

(41)

Question 38

As a consumer moves rightward along an indifference curve, the

(Multiple Choice)

4.8/5

(38)

Question 39

-In the above figure, Reggie's budget line rotates outward from BL₁ to BL₂. He initially consumes at point A. If his new consumption bundle is at point C, this implies that his demand curve for kiwi fruit

(Multiple Choice)

4.7/5

(36)

Question 40

Showing 21 - 40 of 459

-In the above figure, as Brendan's income rises his consumption bundle moves from point A to point B. This implies that for Brendan, compact discs are good and haircuts are good.

Suppose you are graphing the quantity of bagels on the vertical axis and the quantity of coffee on the horizontal axis. A household's real income in terms of bagels is the

Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon. If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy ________ gallons of gas per month.

During October and November 2008, gasoline prices were falling dramatically making travel by car less expensive but air travel prices were as high as ever. If travel by car is less expensive, and income remains the same, describe the substitution and income effects that occur for travelling by car.

-Consider the budget line labeled RT in the above figure. What would shift the budget line to RS?

For a person who consumes only steak and lobster, a fall in either the price of a steak or the price of a lobster shifts the budget line for the two leftward and does not change its slope.

-The MRS of the indifference curves in the above figure

-The figure above shows a consumer is indifferent between points

-The figure above shows Sam's budget line. Which of the following formulas represents Sam's budget equation?

Bob plans to spend $60 per month on DVD movie rentals and CDs. The price of a movie rental is $3 and the price of a CD is $15. If Bob rents 5 DVDs per month, how many CDs can he buy?

-The above figure gives your budget line between CDs and magazines. If the price of a magazine increased, then the budget line

If the relative price of pizza in terms of movies is 3, this means that

The marginal rate of substitution is

-Given the budget line in the above figure, which of the following combinations of pizza and milk are affordable?

When two goods are perfect substitutes, their indifference curves are straight lines.

-Lizzie's budget line is shown in the figure above. If Lizzie's income is $20, which of the following formulas represents her budget equation?

Which of the following statements about the marginal rate of substitution is NOT correct?

What is the meaning of the term "marginal rate of substitution"?

As a consumer moves rightward along an indifference curve, the

-In the above figure, Reggie's budget line rotates outward from BL₁ to BL₂. He initially consumes at point A. If his new consumption bundle is at point C, this implies that his demand curve for kiwi fruit

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 9: Possibilities, Preferences, and Choices

-In the above figure, as Brendan's income rises his consumption bundle moves from point A to point B. This implies that for Brendan, compact discs are ________ good and haircuts are ________ good.

Suppose you are graphing the quantity of bagels on the vertical axis and the quantity of coffee on the horizontal axis. A household's real income in terms of bagels is the

Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon. If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy ________ gallons of gas per month.

During October and November 2008, gasoline prices were falling dramatically making travel by car less expensive but air travel prices were as high as ever. If travel by car is less expensive, and income remains the same, describe the substitution and income effects that occur for travelling by car.

-Consider the budget line labeled RT in the above figure. What would shift the budget line to RS?

For a person who consumes only steak and lobster, a fall in either the price of a steak or the price of a lobster shifts the budget line for the two leftward and does not change its slope.

-The MRS of the indifference curves in the above figure

-The figure above shows a consumer is indifferent between points

-The figure above shows Sam's budget line. Which of the following formulas represents Sam's budget equation?

Bob plans to spend $60 per month on DVD movie rentals and CDs. The price of a movie rental is $3 and the price of a CD is $15. If Bob rents 5 DVDs per month, how many CDs can he buy?

-The above figure gives your budget line between CDs and magazines. If the price of a magazine increased, then the budget line

If the relative price of pizza in terms of movies is 3, this means that

The marginal rate of substitution is

-Given the budget line in the above figure, which of the following combinations of pizza and milk are affordable?

When two goods are perfect substitutes, their indifference curves are straight lines.

-Lizzie's budget line is shown in the figure above. If Lizzie's income is $20, which of the following formulas represents her budget equation?

Which of the following statements about the marginal rate of substitution is NOT correct?

What is the meaning of the term "marginal rate of substitution"?

As a consumer moves rightward along an indifference curve, the

-In the above figure, Reggie's budget line rotates outward from BL1 to BL2. He initially consumes at point A. If his new consumption bundle is at point C, this implies that his demand curve for kiwi fruit

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

-In the above figure, as Brendan's income rises his consumption bundle moves from point A to point B. This implies that for Brendan, compact discs are good and haircuts are good.

-In the above figure, Reggie's budget line rotates outward from BL₁ to BL₂. He initially consumes at point A. If his new consumption bundle is at point C, this implies that his demand curve for kiwi fruit