A) the average consumer chooses to consume at a normal level. B) the average consumer chooses to consume over other similar goods. C) for which an increase in income increases consumption of the good. D) for which an increase in income decreases consumption of the good. A) the average consumer chooses to consume at a normal level. B) the average consumer chooses to consume over other similar goods. C) for which an increase in income increases consumption of the good. D) for which an increase in income decreases consumption of the good.

Exam 21: The Theory of Consumer Choice

Figure 21-31 The figure shows two indifference curves and two budget constraints for a consumer named Kevin. -Refer to Figure 21-31. If Kevin's income is $1,260, then what is the price of a sweater?

(Short Answer)

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Question 241

A worker with a backward-bending labor supply curve responds to an increase in wages by working more hours.

(True/False)

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Question 242

Figure 21-23 -Refer to Figure 21-23. When the price of X is $80, the price of Y is $20, and the consumer's income is $160, the consumer's optimal choice is D. Then the price of X decreases to $20. The substitution effect can be illustrated as the movement from

(Multiple Choice)

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Question 243

Which of the following is not correct?

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Question 244

A normal good is one

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Question 245

A typical consumer consumes both coffee and donuts. After the consumer's income decreases, the consumer consumes more coffee but fewer donuts than before. For this consumer, coffee is a normal good, but donuts are an inferior good.

(True/False)

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Question 246

When leisure is a normal good, the income effect from a decrease in wages is evident in

(Multiple Choice)

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Question 247

Figure 21-19 -Refer to Figure 21-19. Assume that the consumer depicted in the figure has an income of $20. The price of Skittles is $2 and the price of M&M's is $2. The consumer's optimal choice is point

(Multiple Choice)

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Question 248

Consider the budget constraint between "spending today" on the horizontal axis and "spending a year from today" on the vertical axis. 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. Suppose now that the interest rate increases to 40%. What happens to the slope of your budget constraint relative to when the interest rate was 25%? The slope

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Question 249

Taylor spends all of her income on tank tops and running shoes, and the price of a pair of running shoes is four times the price of a tank top. In order to maximize total utility, Taylor should buy

(Multiple Choice)

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Question 250

When Joshua's income increases, he purchases more primerib dinners than he did before his income increased. For Joshua, prime-rib dinners are a(n)

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Question 251

Which of the following equations corresponds to an optimal choice point?

(Multiple Choice)

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Question 252

An increase in a consumer's income

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Question 253

Figure 21-25 The figure pertains to a particular consumer. On the axes, X represents the quantity of good X and Y represents the quantity of good Y. -Refer to Figure 21-25. Suppose the price of good X is $10, the price of good Y is $5, and the consumer's income is $210. Then the consumer's optimal choice is represented by a point on which curve?

(Multiple Choice)

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Question 254

A decrease in a consumer's income

(Multiple Choice)

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Question 255

Suppose a consumer spends her income on two goods: iTunes music downloads and books. The consumer has $100 to allocate to these two goods, the price of a downloaded song is $1, and the price of a book is $20. What is the maximum number of books the consumer can purchase?

(Multiple Choice)

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Question 256

Figure 21-24 The figure shows three indifference curves and a budget constraint for a certain consumer named Steve. -Refer to Figure 21-24. Steve

(Multiple Choice)

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Question 257

Figure 21-8 -Refer to Figure 21-8. If the price of good X is $5, and your budget constraint is DE, what is the price of good Y?

(Multiple Choice)

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Question 258

When two goods are perfect complements, the indifference curves are right angles.

(True/False)

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Question 259

The following diagram shows two budget lines: A and B. Which of the following could explain the change in the budget line from A to B?

(Multiple Choice)

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Question 260

Showing 241 - 260 of 440

Figure 21-31 The figure shows two indifference curves and two budget constraints for a consumer named Kevin. -Refer to Figure 21-31. If Kevin's income is $1,260, then what is the price of a sweater?

A worker with a backward-bending labor supply curve responds to an increase in wages by working more hours.

Figure 21-23 -Refer to Figure 21-23. When the price of X is $80, the price of Y is $20, and the consumer's income is $160, the consumer's optimal choice is D. Then the price of X decreases to $20. The substitution effect can be illustrated as the movement from

Which of the following is not correct?

A normal good is one

A typical consumer consumes both coffee and donuts. After the consumer's income decreases, the consumer consumes more coffee but fewer donuts than before. For this consumer, coffee is a normal good, but donuts are an inferior good.

When leisure is a normal good, the income effect from a decrease in wages is evident in

Figure 21-19 -Refer to Figure 21-19. Assume that the consumer depicted in the figure has an income of $20. The price of Skittles is $2 and the price of M&M's is $2. The consumer's optimal choice is point

Taylor spends all of her income on tank tops and running shoes, and the price of a pair of running shoes is four times the price of a tank top. In order to maximize total utility, Taylor should buy

When Joshua's income increases, he purchases more primerib dinners than he did before his income increased. For Joshua, prime-rib dinners are a(n)

Which of the following equations corresponds to an optimal choice point?

An increase in a consumer's income

A decrease in a consumer's income

Suppose a consumer spends her income on two goods: iTunes music downloads and books. The consumer has $100 to allocate to these two goods, the price of a downloaded song is $1, and the price of a book is $20. What is the maximum number of books the consumer can purchase?

Figure 21-24 The figure shows three indifference curves and a budget constraint for a certain consumer named Steve. -Refer to Figure 21-24. Steve

Figure 21-8 -Refer to Figure 21-8. If the price of good X is $5, and your budget constraint is DE, what is the price of good Y?

When two goods are perfect complements, the indifference curves are right angles.

The following diagram shows two budget lines: A and B. Which of the following could explain the change in the budget line from A to B?

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

Filters

Exam 21: The Theory of Consumer Choice

Figure 21-31 The figure shows two indifference curves and two budget constraints for a consumer named Kevin. -Refer to Figure 21-31. If Kevin's income is $1,260, then what is the price of a sweater?

A worker with a backward-bending labor supply curve responds to an increase in wages by working more hours.

Figure 21-23 -Refer to Figure 21-23. When the price of X is $80, the price of Y is $20, and the consumer's income is $160, the consumer's optimal choice is D. Then the price of X decreases to $20. The substitution effect can be illustrated as the movement from

Which of the following is not correct?

A normal good is one

A typical consumer consumes both coffee and donuts. After the consumer's income decreases, the consumer consumes more coffee but fewer donuts than before. For this consumer, coffee is a normal good, but donuts are an inferior good.

When leisure is a normal good, the income effect from a decrease in wages is evident in

Figure 21-19 -Refer to Figure 21-19. Assume that the consumer depicted in the figure has an income of $20. The price of Skittles is $2 and the price of M&M's is $2. The consumer's optimal choice is point

Taylor spends all of her income on tank tops and running shoes, and the price of a pair of running shoes is four times the price of a tank top. In order to maximize total utility, Taylor should buy

When Joshua's income increases, he purchases more prime­rib dinners than he did before his income increased. For Joshua, prime-rib dinners are a(n)

Which of the following equations corresponds to an optimal choice point?

An increase in a consumer's income

A decrease in a consumer's income

Suppose a consumer spends her income on two goods: iTunes music downloads and books. The consumer has $100 to allocate to these two goods, the price of a downloaded song is $1, and the price of a book is $20. What is the maximum number of books the consumer can purchase?

Figure 21-24 The figure shows three indifference curves and a budget constraint for a certain consumer named Steve. -Refer to Figure 21-24. Steve

Figure 21-8 -Refer to Figure 21-8. If the price of good X is $5, and your budget constraint is DE, what is the price of good Y?

When two goods are perfect complements, the indifference curves are right angles.

The following diagram shows two budget lines: A and B. Which of the following could explain the change in the budget line from A to B?

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

Filters

When Joshua's income increases, he purchases more primerib dinners than he did before his income increased. For Joshua, prime-rib dinners are a(n)