Question 1

If bundles of goods A and B lie on the same indifference curve,one can assume the individual:

Accepted Answer

A) prefers bundle A to bundle B 
B) prefers bundle B to bundle A. 
C) enjoys bundle A and B equally. 
D) bundle A contains the same goods as bundle B. 
A) prefers bundle A to bundle B 
B) prefers bundle B to bundle A. 
C) enjoys bundle A and B equally. 
D) bundle A contains the same goods as bundle B. C

Question 2

Indifference curves:

Accepted Answer

A) may sometimes intersect. 
B) are contour lines only of a linear utility function. 
C) are convex if the utility function is quasi-concave. 
D) shift when prices change. 
A) may sometimes intersect. 
B) are contour lines only of a linear utility function. 
C) are convex if the utility function is quasi-concave. 
D) shift when prices change. C

Question 3

Which of the following utility functions would not be consistent with the notion that x and y are both "goods" with positive marginal utilities?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)    D

Question 4

refer to an individual whose utility function is given by:

-For this utility function,the MRS:

Accepted Answer

A) depends on the values of x and y. 
B) is always 0. 
C) is always 2. 
D) is always 4. 
A) depends on the values of x and y. 
B) is always 0. 
C) is always 2. 
D) is always 4.

Question 5

If an individual's utility function is quasi-concave,his or her MRS will:

Accepted Answer

A) diminish as x is substituted for y. 
B) increase as x is substituted for y. 
C) be undefined except in special cases. 
D) always depend only on the ratio of x to y. 
A) diminish as x is substituted for y. 
B) increase as x is substituted for y. 
C) be undefined except in special cases. 
D) always depend only on the ratio of x to y.

Question 6

Which of the following utility functions best represents the idea that two goods,x and y,are perfect complements?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 7

For an individual who consumes only two goods,x and y,the opportunity cost of consuming one more unit of x in terms of how much y must be given up is reflected by:

Accepted Answer

A) the individual's marginal rate of substitution. 
B) the market prices of x and y. 
C) the slope of the individual's indifference curve. 
D) none of the above. 
A) the individual's marginal rate of substitution. 
B) the market prices of x and y. 
C) the slope of the individual's indifference curve. 
D) none of the above.

Question 8

concern the CES utility function:  
-For this utility function,marginal utilities are:​

Accepted Answer

A) ​negative for   
B) ​diminishing only for   
C) ​increasing for   
D) ​always positive. 
A) ​negative for   
B) ​diminishing only for   
C) ​increasing for   
D) ​always positive.

Question 9

Which of these utility functions represent the same preferences as   
  ?

Accepted Answer

A)     
B)    
C)    
D) All of the above represent the same preferences. 
A)     
B)    
C)    
D) All of the above represent the same preferences.

Question 10

concern the CES utility function:  
-For this utility function smaller values for  
Imply:​

Accepted Answer

A) ​increasingly concave indifference curves. 
B) ​increasingly convex indifference curves. 
C) ​indifference curves that are convex,linear,and then concave. 
D) ​indifference curves that are concave,linear,and then convex. 
A) ​increasingly concave indifference curves. 
B) ​increasingly convex indifference curves. 
C) ​indifference curves that are convex,linear,and then concave. 
D) ​indifference curves that are concave,linear,and then convex.

Question 11

If utility is given by  
Then the bundle (3,2)provides the same utility as the bundle:

Accepted Answer

A) (1,3). 
B) (2,3). 
C) (4,1). 
D) (4,2). 
A) (1,3). 
B) (2,3). 
C) (4,1). 
D) (4,2).

Question 12

If utility is given by  
,this person's indifference curves are:

Accepted Answer

A) parabolas. 
B) hyperbolas. 
C) concentric circles. 
D) straight lines. 
A) parabolas. 
B) hyperbolas. 
C) concentric circles. 
D) straight lines.

Question 13

refer to an individual whose utility function is given by:

-With this utility function,the bundle (3,2)provides the same utility as the bundle:

Accepted Answer

A) (2,3). 
B) (2,4). 
C) (2,5). 
D) (3,3). 
A) (2,3). 
B) (2,4). 
C) (2,5). 
D) (3,3).

Question 14

If utility is given by  
,then the person's MRS at the point x = 5,y = 2 is given by:

Accepted Answer

A) 0.4. 
B) 1.0. 
C) 2.5. 
D) 5.0. 
A) 0.4. 
B) 1.0. 
C) 2.5. 
D) 5.0.

If bundles of goods A and B lie on the same indifference curve,one can assume the individual:

Indifference curves:

Which of the following utility functions would not be consistent with the notion that x and y are both "goods" with positive marginal utilities?

refer to an individual whose utility function is given by: -For this utility function,the MRS:

If an individual's utility function is quasi-concave,his or her MRS will:

Which of the following utility functions best represents the idea that two goods,x and y,are perfect complements?

For an individual who consumes only two goods,x and y,the opportunity cost of consuming one more unit of x in terms of how much y must be given up is reflected by:

concern the CES utility function: -For this utility function,marginal utilities are:

Which of these utility functions represent the same preferences as ?

concern the CES utility function: -For this utility function smaller values for Imply:

If utility is given by Then the bundle (3,2)provides the same utility as the bundle:

If utility is given by ,this person's indifference curves are:

refer to an individual whose utility function is given by: -With this utility function,the bundle (3,2)provides the same utility as the bundle:

If utility is given by ,then the person's MRS at the point x = 5,y = 2 is given by:

Utility Maximization and Choice

Income and Substitution Effects

Demand Relationships Among Goods

Uncertainty

Game Theory

Production Functions

Cost Functions

Profit Maximization

The Partial Equilibrium Competitive Model

General Equilibrium and Welfare

Monopoly

Imperfect Competition

Labor Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Filters

Exam 1: Preferences and Utility

If bundles of goods A and B lie on the same indifference curve,one can assume the individual:

Indifference curves:

Which of the following utility functions would not be consistent with the notion that x and y are both "goods" with positive marginal utilities?

refer to an individual whose utility function is given by: -For this utility function,the MRS:

If an individual's utility function is quasi-concave,his or her MRS will:

Which of the following utility functions best represents the idea that two goods,x and y,are perfect complements?

For an individual who consumes only two goods,x and y,the opportunity cost of consuming one more unit of x in terms of how much y must be given up is reflected by:

concern the CES utility function: -For this utility function,marginal utilities are:​

Which of these utility functions represent the same preferences as ?

concern the CES utility function: -For this utility function smaller values for Imply:​

If utility is given by Then the bundle (3,2)provides the same utility as the bundle:

If utility is given by ,this person's indifference curves are:

refer to an individual whose utility function is given by: -With this utility function,the bundle (3,2)provides the same utility as the bundle:

If utility is given by ,then the person's MRS at the point x = 5,y = 2 is given by:

Utility Maximization and Choice

Income and Substitution Effects

Demand Relationships Among Goods

Uncertainty

Game Theory

Production Functions

Cost Functions

Profit Maximization

The Partial Equilibrium Competitive Model

General Equilibrium and Welfare

Monopoly

Imperfect Competition

Labor Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Filters

concern the CES utility function: -For this utility function,marginal utilities are:

concern the CES utility function: -For this utility function smaller values for Imply: