Question 1

Suppose when the consumer's income rises by 100%,the consumer's consumption of good   only increases by 1%.We can infer that the consumer's income elasticity for good   is

Accepted Answer

A)  -0.01 
B)  -1 
C)  0.01 
D)  1 
A)  -0.01 
B)  -1 
C)  0.01 
D)  1

Question 2

One way to measure the opportunity cost of an hour of leisure is

Accepted Answer

A)  the wage rate that an individual could earn for that hour. 
B)  the cost of going to a restaurant every evening to eat. 
C)  the cost of visiting a museum just for fun. 
D)  the cost of the cleaning service that I hire to clean my house because I work 50 hours per week. 
A)  the wage rate that an individual could earn for that hour. 
B)  the cost of going to a restaurant every evening to eat. 
C)  the cost of visiting a museum just for fun. 
D)  the cost of the cleaning service that I hire to clean my house because I work 50 hours per week.

Question 3

If a consumer's preferences for two goods,say food and clothing,are such that as income decreases,consumption of food increases but consumption of clothing decreases,we can say that

Accepted Answer

A)  food and clothing are inferior goods. 
B)  food is a normal good and clothing is an inferior good. 
C)  food is an inferior good and clothing is a normal good. 
D)  food and clothing are both normal goods. 
A)  food and clothing are inferior goods. 
B)  food is a normal good and clothing is an inferior good. 
C)  food is an inferior good and clothing is a normal good. 
D)  food and clothing are both normal goods.

Question 4

On a typical optimal choice diagram,with budget lines and indifference curves,the line that connects the consumer's optimal baskets as the price of one good changes holding income and the price of the other good constant is called the consumer's

Accepted Answer

A)  income-consumption curve. 
B)  price-consumption curve. 
C)  demand curve. 
D)  Engel curve. 
A)  income-consumption curve. 
B)  price-consumption curve. 
C)  demand curve. 
D)  Engel curve.

Question 5

Suppose when the consumer's income rises by 100%,the consumer's consumption of good   falls by 1%.We can infer that good   is a(n)

Accepted Answer

A)  normal good. 
B)  inferior good. 
C)  Giffen good. 
D)  marginal good. 
A)  normal good. 
B)  inferior good. 
C)  Giffen good. 
D)  marginal good.

Question 6

Suppose the consumer's utility function is given by U(x,y) = x1/4y3/4 where     The equation for this consumer's demand curve for   is

Accepted Answer

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

Suppose when the consumer's income rises by 100%,the consumer's consumption of good only increases by 1%.We can infer that the consumer's income elasticity for good is

One way to measure the opportunity cost of an hour of leisure is

If a consumer's preferences for two goods,say food and clothing,are such that as income decreases,consumption of food increases but consumption of clothing decreases,we can say that

On a typical optimal choice diagram,with budget lines and indifference curves,the line that connects the consumer's optimal baskets as the price of one good changes holding income and the price of the other good constant is called the consumer's

Suppose when the consumer's income rises by 100%,the consumer's consumption of good falls by 1%.We can infer that good is a(n)

Suppose the consumer's utility function is given by U(x,y) = x^1/4y^3/4 where The equation for this consumer's demand curve for is

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Competitive Markets

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

Exam 5: The Theory of Demand

Suppose when the consumer's income rises by 100%,the consumer's consumption of good only increases by 1%.We can infer that the consumer's income elasticity for good is

One way to measure the opportunity cost of an hour of leisure is

If a consumer's preferences for two goods,say food and clothing,are such that as income decreases,consumption of food increases but consumption of clothing decreases,we can say that

On a typical optimal choice diagram,with budget lines and indifference curves,the line that connects the consumer's optimal baskets as the price of one good changes holding income and the price of the other good constant is called the consumer's

Suppose when the consumer's income rises by 100%,the consumer's consumption of good falls by 1%.We can infer that good is a(n)

Suppose the consumer's utility function is given by U(x,y) = x1/4y3/4 where The equation for this consumer's demand curve for is

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Competitive Markets

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Game Theory and Strategic Behavior

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters

Suppose the consumer's utility function is given by U(x,y) = x^1/4y^3/4 where The equation for this consumer's demand curve for is