Exam 4: The Theory of Individual Behavior

Suppose that a consumer's preferences are well behaved in that properties 4-1 - 4-4 are satisfied and the initial equilibrium consumption bundle consists of 10 units of X and 25 units of Y.If P_Y increases such that the new equilibrium consumption bundle is 15 units of X and 10 units of Y, then goods X and Y are

(Multiple Choice)

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Question 161

Joe consumes 48 units of food and 12 units of clothing.If food is an inferior good,

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Question 162

If income decreases, then

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Question 163

What is the maximum amount of good X that can be purchased if X and Y are the only two goods available for purchase and P_x = $10, P_y = $20, Y = 0, and M = 400?

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Question 164

Managers can get workers to work longer hours

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Question 165

The substitution effect reflects how a consumer will react to a different

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Question 166

Suppose that consumers' preferences are well behaved in that properties 4-1 - 4-4 are satisfied.Furthermore, assume that both X and Y are normal goods and that the price of good Y decreases.Then, which of the following effect is known with certainty.

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Question 167

The difference between a price decrease and an increase in income is that

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Question 168

If a firm offers to pay a worker $10 for each hour of leisure the worker gives up then the opportunities confronting the worker will be given by the

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Question 169

If an increase in the price of good X leads to an increase in the consumption of good Y, then goods X and Y are called

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Question 170

When the price of a good increases with other things unchanged, the real income of the consumer

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Question 171

Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can use 24 hours per day.What is the market rate of substitution between leisure and income?

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Question 172

Which of the following pairs of goods is probably not an example of substitutes?

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Question 173

Mitchell's money income is $150, the price of X is $2, and the price of Y is $2.Given these prices and income, Mitchell buys 50 units of X and 25 units of Y.Call this combination of X and Y bundle J.At bundle J Mitchell's MRS is 2.At bundle J, if Mitchell increases consumption of Y by 1 unit how many units of X must he give up in order to satisfy his budget constraint?

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Question 174

Showing 161 - 174 of 174

Joe consumes 48 units of food and 12 units of clothing.If food is an inferior good,

If income decreases, then

What is the maximum amount of good X that can be purchased if X and Y are the only two goods available for purchase and P_x = $10, P_y = $20, Y = 0, and M = 400?

Managers can get workers to work longer hours

The substitution effect reflects how a consumer will react to a different

Suppose that consumers' preferences are well behaved in that properties 4-1 - 4-4 are satisfied.Furthermore, assume that both X and Y are normal goods and that the price of good Y decreases.Then, which of the following effect is known with certainty.

The difference between a price decrease and an increase in income is that

If a firm offers to pay a worker $10 for each hour of leisure the worker gives up then the opportunities confronting the worker will be given by the

If an increase in the price of good X leads to an increase in the consumption of good Y, then goods X and Y are called

When the price of a good increases with other things unchanged, the real income of the consumer

Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can use 24 hours per day.What is the market rate of substitution between leisure and income?

Which of the following pairs of goods is probably not an example of substitutes?

The Fundamentals of Managerial Economics

Market Forces: Demand and Supply

Quantitative Demand Analysis

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

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Exam 4: The Theory of Individual Behavior

Joe consumes 48 units of food and 12 units of clothing.If food is an inferior good,

If income decreases, then

What is the maximum amount of good X that can be purchased if X and Y are the only two goods available for purchase and Px = $10, Py = $20, Y = 0, and M = 400?

Managers can get workers to work longer hours

The substitution effect reflects how a consumer will react to a different

Suppose that consumers' preferences are well behaved in that properties 4-1 - 4-4 are satisfied.Furthermore, assume that both X and Y are normal goods and that the price of good Y decreases.Then, which of the following effect is known with certainty.

The difference between a price decrease and an increase in income is that

If a firm offers to pay a worker $10 for each hour of leisure the worker gives up then the opportunities confronting the worker will be given by the

If an increase in the price of good X leads to an increase in the consumption of good Y, then goods X and Y are called

When the price of a good increases with other things unchanged, the real income of the consumer

Suppose a worker is offered a wage of $8 per hour, plus a fixed payment of $100 per day, and he can use 24 hours per day.What is the market rate of substitution between leisure and income?

Which of the following pairs of goods is probably not an example of substitutes?

The Fundamentals of Managerial Economics

Market Forces: Demand and Supply

Quantitative Demand Analysis

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

Filters

What is the maximum amount of good X that can be purchased if X and Y are the only two goods available for purchase and P_x = $10, P_y = $20, Y = 0, and M = 400?