Exam 4: The Theory of Individual Behavior

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?

(Multiple Choice)

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Question 121

Suppose that three consumers are in the market for good X.Consumer 1's (inverse)demand is P_X = 40 − Q_X; Consumer 2's (inverse)demand is P_X = 50 − 2Q_X; and Consumer 3's (inverse)demand is P_X = 70 − 4Q_X.When P_X = $20,the market will demand:

(Multiple Choice)

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Question 122

Managers can get workers to work longer hours by:

(Multiple Choice)

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Question 123

By the transitivity property,if A ≻ B and B ≻ C then:

(Multiple Choice)

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Question 124

Indifference curves further from the origin imply:

(Multiple Choice)

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Question 125

If income decreases,then:

(Multiple Choice)

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Question 126

Clothing stores frequently run "sales" where they discount clothing prices by as much as 25 percent.What impact,if any,would you expect these "sales" to have on a store that specializes in selling shoes produced by Rockport?

(Essay)

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Question 127

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

(Multiple Choice)

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Question 128

Suppose we are given that the value of a particular utility function is a constant.That is,U(X,Y)= c.Then,the total derivative of this relation is:

(Multiple Choice)

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Question 129

Suppose a manager's preferences depend only on profit.Such a manager will then have an indifference curve that:

(Multiple Choice)

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Question 130

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

(Multiple Choice)

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Question 131

What are the advantages to a firm of selling gift certificates?

(Multiple Choice)

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Question 132

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?

(Multiple Choice)

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Question 133

Suppose earnings are given by E = $60 + $7(24 − L),where E is earnings and L is the hours of leisure.What is the price to the worker of consuming an additional hour of leisure?

(Multiple Choice)

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Question 134

A consumer has a choice of spending $13,000 on a Honda or $9,000 on a Saturn.She is observed buying the Saturn.Does this mean the consumer prefers the Saturn? Explain your answer.

(Essay)

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Question 135

Suppose earnings are given by E = $50 + $20(24 − L),where E is earnings and L is the hours of leisure.What is the price to the worker of consuming an additional hour of leisure?

(Multiple Choice)

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Question 136

Suppose that consumers' preferences are well behaved in that properties 4-1 to 4-4 are satisfied.Furthermore,assume goods X and Y are normal goods and the price of good X decreases.Then the substitution effect will lead consumers to consume:

(Multiple Choice)

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Question 137

A price decrease causes a consumer's "real" income to:

(Multiple Choice)

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Question 138

Joe consumes 10 units of food and 12 units of clothing.If food is an inferior good,will Joe be indifferent between receiving a $12 gift certificate at a clothing store and receiving $12 in cash? Explain and show graphically.

(Essay)

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Question 139

How does a decrease in the price of good X affect the market rate of substitution between goods X and Y?

(Multiple Choice)

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Question 140

Showing 121 - 140 of 183

Suppose that three consumers are in the market for good X.Consumer 1's (inverse)demand is P_X = 40 − Q_X; Consumer 2's (inverse)demand is P_X = 50 − 2Q_X; and Consumer 3's (inverse)demand is P_X = 70 − 4Q_X.When P_X = $20,the market will demand:

Managers can get workers to work longer hours by:

By the transitivity property,if A ≻ B and B ≻ C then:

Indifference curves further from the origin imply:

If income decreases,then:

Clothing stores frequently run "sales" where they discount clothing prices by as much as 25 percent.What impact,if any,would you expect these "sales" to have on a store that specializes in selling shoes produced by Rockport?

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

Suppose we are given that the value of a particular utility function is a constant.That is,U(X,Y)= c.Then,the total derivative of this relation is:

Suppose a manager's preferences depend only on profit.Such a manager will then have an indifference curve that:

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

What are the advantages to a firm of selling gift certificates?

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?

Suppose earnings are given by E = $60 + $7(24 − L),where E is earnings and L is the hours of leisure.What is the price to the worker of consuming an additional hour of leisure?

A consumer has a choice of spending $13,000 on a Honda or $9,000 on a Saturn.She is observed buying the Saturn.Does this mean the consumer prefers the Saturn? Explain your answer.

Suppose earnings are given by E = $50 + $20(24 − L),where E is earnings and L is the hours of leisure.What is the price to the worker of consuming an additional hour of leisure?

Suppose that consumers' preferences are well behaved in that properties 4-1 to 4-4 are satisfied.Furthermore,assume goods X and Y are normal goods and the price of good X decreases.Then the substitution effect will lead consumers to consume:

A price decrease causes a consumer's "real" income to:

Joe consumes 10 units of food and 12 units of clothing.If food is an inferior good,will Joe be indifferent between receiving a $12 gift certificate at a clothing store and receiving $12 in cash? Explain and show graphically.

How does a decrease in the price of good X affect the market rate of substitution between goods X and Y?

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

Suppose that three consumers are in the market for good X.Consumer 1's (inverse)demand is PX = 40 − QX; Consumer 2's (inverse)demand is PX = 50 − 2QX; and Consumer 3's (inverse)demand is PX = 70 − 4QX.When PX = $20,the market will demand:

Managers can get workers to work longer hours by:

By the transitivity property,if A ≻ B and B ≻ C then:

Indifference curves further from the origin imply:

If income decreases,then:

Clothing stores frequently run "sales" where they discount clothing prices by as much as 25 percent.What impact,if any,would you expect these "sales" to have on a store that specializes in selling shoes produced by Rockport?

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

Suppose we are given that the value of a particular utility function is a constant.That is,U(X,Y)= c.Then,the total derivative of this relation is:

Suppose a manager's preferences depend only on profit.Such a manager will then have an indifference curve that:

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

What are the advantages to a firm of selling gift certificates?

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?

Suppose earnings are given by E = $60 + $7(24 − L),where E is earnings and L is the hours of leisure.What is the price to the worker of consuming an additional hour of leisure?

A consumer has a choice of spending $13,000 on a Honda or $9,000 on a Saturn.She is observed buying the Saturn.Does this mean the consumer prefers the Saturn? Explain your answer.

Suppose earnings are given by E = $50 + $20(24 − L),where E is earnings and L is the hours of leisure.What is the price to the worker of consuming an additional hour of leisure?

Suppose that consumers' preferences are well behaved in that properties 4-1 to 4-4 are satisfied.Furthermore,assume goods X and Y are normal goods and the price of good X decreases.Then the substitution effect will lead consumers to consume:

A price decrease causes a consumer's "real" income to:

Joe consumes 10 units of food and 12 units of clothing.If food is an inferior good,will Joe be indifferent between receiving a $12 gift certificate at a clothing store and receiving $12 in cash? Explain and show graphically.

How does a decrease in the price of good X affect the market rate of substitution between goods X and Y?

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

Suppose that three consumers are in the market for good X.Consumer 1's (inverse)demand is P_X = 40 − Q_X; Consumer 2's (inverse)demand is P_X = 50 − 2Q_X; and Consumer 3's (inverse)demand is P_X = 70 − 4Q_X.When P_X = $20,the market will demand:

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?