A) inferior goods, and all inferior goods are Giffen goods. B) inferior goods, but not all inferior goods are Giffen goods. C) normal goods, but not all normal goods are Giffen goods. D) normal goods, and all normal goods are Giffen goods. A) inferior goods, and all inferior goods are Giffen goods. B) inferior goods, but not all inferior goods are Giffen goods. C) normal goods, but not all normal goods are Giffen goods. D) normal goods, and all normal goods are Giffen goods.

Exam 21: The Theory of Consumer Choice

A family on a trip budgets $800 for meals and gasoline. If the price of a meal for the family is $50, how many meals can the family buy if they do not buy any gasoline?

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Question 1

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If the price of bread is zero and the price of cheese is positive, then the budget constraint between bread (on the horizontal axis) and cheese (on the vertical axis) would

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Question 2

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If consumers purchase more of a good when their income rises, the good is a normal good.

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Question 3

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True

Thomas faces prices of $6 for a unit of good X and $30 for a unit of good Y. At his optimum, Thomas is willing to give up 1 unit of good Y for units of good X.

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Question 4

Which of the following statements is correct?

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Question 5

The indifference curves for nickels and dimes are straight lines.

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Question 6

If an increase in the interest rate lowers savings, then

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Question 7

Figure 21-8 -Refer to Figure 21-8. You have $600 to spend on good X and good Y. If good X costs $100 and good Y costs $100, your budget constraint is

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Question 8

Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. If you save all your money, how much money will you have one year from today?

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Question 9

Gerald spends his weekly income on gin and cocktail olives. The price of gin has risen from $7 to $9 per bottle, the price of cocktail olives has fallen from $6 to $5 per jar, and Gerald's income has stayed fixed at $46 per week. Since the price changes, Gerald has been buying 4 bottles of gin and 2 jars of cocktail olives per week. At the original prices, 4 bottles of gin and 2 jars of cocktail olives would have

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Question 10

If a consumer purchases more of good X and good Y after her income increases, then neither good X nor good Y is an inferior good for her.

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Question 11

When a consumer experiences a price increase for an inferior good, if the income effect is

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Question 12

If the relative price of a concert ticket is three times the price of a meal at a good restaurant, then the opportunity cost of a concert ticket can be measured by the

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Question 13

Giffen goods are inferior goods for which the income effect dominates the substitution effect.

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Question 14

Figure 21-7 -Refer to Figure 21-7. Suppose a consumer has $200 in income, the price of a book is $5, and the price of a DVD is $10. What is the value of A?

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Question 15

The substitution effect of a wage decrease in the work-leisure model results in the worker choosing to

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Question 16

For a typical consumer, most indifference curves are bowed inward.

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Question 17

The marginal rate of substitution between goods A and B measures the price of A relative to the price of B.

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Question 18

Figure 21-17 -Refer to Figure 21-17. When the price of X is $6, the price of Y is $24, and income is $48, Paul's optimal choice is point C. Then the price of Y decreases to $8. Paul's new optimal choice is point

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Question 19

All Giffen goods are

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Question 20

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Exam 21: The Theory of Consumer Choice

A family on a trip budgets $800 for meals and gasoline. If the price of a meal for the family is $50, how many meals can the family buy if they do not buy any gasoline?

If the price of bread is zero and the price of cheese is positive, then the budget constraint between bread (on the horizontal axis) and cheese (on the vertical axis) would

If consumers purchase more of a good when their income rises, the good is a normal good.

Thomas faces prices of $6 for a unit of good X and $30 for a unit of good Y. At his optimum, Thomas is willing to give up 1 unit of good Y for units of good X.

Which of the following statements is correct?

The indifference curves for nickels and dimes are straight lines.

If an increase in the interest rate lowers savings, then

Figure 21-8 -Refer to Figure 21-8. You have $600 to spend on good X and good Y. If good X costs $100 and good Y costs $100, your budget constraint is

Suppose that you have $100 today and expect to receive $100 one year from today. Your money market account pays an annual interest rate of 25%, and you may borrow money at that interest rate. If you save all your money, how much money will you have one year from today?

If a consumer purchases more of good X and good Y after her income increases, then neither good X nor good Y is an inferior good for her.

When a consumer experiences a price increase for an inferior good, if the income effect is

If the relative price of a concert ticket is three times the price of a meal at a good restaurant, then the opportunity cost of a concert ticket can be measured by the

Giffen goods are inferior goods for which the income effect dominates the substitution effect.

Figure 21-7 -Refer to Figure 21-7. Suppose a consumer has $200 in income, the price of a book is $5, and the price of a DVD is $10. What is the value of A?

The substitution effect of a wage decrease in the work-leisure model results in the worker choosing to

For a typical consumer, most indifference curves are bowed inward.

The marginal rate of substitution between goods A and B measures the price of A relative to the price of B.

Figure 21-17 -Refer to Figure 21-17. When the price of X is $6, the price of Y is $24, and income is $48, Paul's optimal choice is point C. Then the price of Y decreases to $8. Paul's new optimal choice is point

All Giffen goods are

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

Frontiers of Microeconomics

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