Exam 4: The Theory of Individual Behavior

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 21

Joe consumes 10 units of food and 12 units of clothing. Since food is an inferior good, a gift to Joe of a $12 gift certificate at a clothing store will:

(Multiple Choice)

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Question 22

If income increases, the budget line:

(Multiple Choice)

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Question 23

What is/are the important things that must be developed when characterizing consumer behavior?

(Multiple Choice)

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Question 24

The total earnings of a worker are represented by E = 100 + $10(24 - L), where E is earnings and L is the number of hours of leisure. How many hours of leisure are consumed if this worker's total earnings are $160?

(Multiple Choice)

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Question 25

The horizontal intercept of the budget line is:

(Multiple Choice)

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Question 26

P_XX + P_YY = M is called:

(Multiple Choice)

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Question 27

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 28

If a consumer is given a $10 gift certificate good for items in store X, and all items in store X are inferior goods, then the consumer desires to consume:

(Multiple Choice)

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Question 29

Consumers adjust their purchasing behavior so that:

(Multiple Choice)

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Question 30

Sam Voter prefers Jack to Rob, Rob to Mark, and Jack to Mark. Sam's preferences:

(Multiple Choice)

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Question 31

The total earnings of a worker are represented by E = 100 + $10(24 - L), where E is earnings and L is the number of hours of leisure. How much will the worker earn if he takes 14 hours of leisure per day?

(Multiple Choice)

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Question 32

Sam Voter prefers Ronald to Joe, Joe to Gary, and Gary to Ronald. Sam's preferences:

(Multiple Choice)

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Question 33

At the equilibrium consumption bundle, which of the following holds?

(Multiple Choice)

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Question 34

Suppose you are the manager of a firm that produces Ultrasweet, a sugar substitute. Show graphically the effect of a reduction in the price of Sweet and Healthy, a competitor's product, on a typical consumer's consumption of Ultrasweet.

(Essay)

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Question 35

Sally Consumer's indifference curve between cigarettes and hamburgers is upward sloping. Based on this information, can we conclude that Sally views cigarettes as "bads" and hamburgers as "goods"? Explain.

(Essay)

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Question 36

The income effect isolates the change in the consumption of a good caused by the change in:

(Multiple Choice)

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Question 37

Suppose that a consumer's preferences are well behaved in that properties 4-1 to 4-4 are satisfied and the initial budget constraint is given by 300 = 2X + 4Y. At the initial budget constraint, this consumer purchases 100 units of good X and 25 units of good Y. Suppose the price of X increases to $4 per unit, resulting in a new consumption bundle consisting of 60 units of X and 15 units of Y. Then, the slope of the inverse demand for good X over this consumption range is:

(Multiple Choice)

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Question 38

When the price of one good increases, the associated income effect is represented by a move from one indifference curve to a:

(Multiple Choice)

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Question 39

After a price decrease for good X, the new consumer equilibrium level of good X will be:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 179

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?

Joe consumes 10 units of food and 12 units of clothing. Since food is an inferior good, a gift to Joe of a $12 gift certificate at a clothing store will:

If income increases, the budget line:

What is/are the important things that must be developed when characterizing consumer behavior?

The total earnings of a worker are represented by E = 100 + $10(24 - L), where E is earnings and L is the number of hours of leisure. How many hours of leisure are consumed if this worker's total earnings are $160?

The horizontal intercept of the budget line is:

P_XX + P_YY = M is called:

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?

If a consumer is given a $10 gift certificate good for items in store X, and all items in store X are inferior goods, then the consumer desires to consume:

Consumers adjust their purchasing behavior so that:

Sam Voter prefers Jack to Rob, Rob to Mark, and Jack to Mark. Sam's preferences:

The total earnings of a worker are represented by E = 100 + $10(24 - L), where E is earnings and L is the number of hours of leisure. How much will the worker earn if he takes 14 hours of leisure per day?

Sam Voter prefers Ronald to Joe, Joe to Gary, and Gary to Ronald. Sam's preferences:

At the equilibrium consumption bundle, which of the following holds?

Suppose you are the manager of a firm that produces Ultrasweet, a sugar substitute. Show graphically the effect of a reduction in the price of Sweet and Healthy, a competitor's product, on a typical consumer's consumption of Ultrasweet.

Sally Consumer's indifference curve between cigarettes and hamburgers is upward sloping. Based on this information, can we conclude that Sally views cigarettes as "bads" and hamburgers as "goods"? Explain.

The income effect isolates the change in the consumption of a good caused by the change in:

When the price of one good increases, the associated income effect is represented by a move from one indifference curve to a:

After a price decrease for good X, the new consumer equilibrium level of good X will be:

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

Exam 4: The Theory of Individual Behavior

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?

Joe consumes 10 units of food and 12 units of clothing. Since food is an inferior good, a gift to Joe of a $12 gift certificate at a clothing store will:

If income increases, the budget line:

What is/are the important things that must be developed when characterizing consumer behavior?

The total earnings of a worker are represented by E = 100 + $10(24 - L), where E is earnings and L is the number of hours of leisure. How many hours of leisure are consumed if this worker's total earnings are $160?

The horizontal intercept of the budget line is:

PXX + PYY = M is called:

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?

If a consumer is given a $10 gift certificate good for items in store X, and all items in store X are inferior goods, then the consumer desires to consume:

Consumers adjust their purchasing behavior so that:

Sam Voter prefers Jack to Rob, Rob to Mark, and Jack to Mark. Sam's preferences:

The total earnings of a worker are represented by E = 100 + $10(24 - L), where E is earnings and L is the number of hours of leisure. How much will the worker earn if he takes 14 hours of leisure per day?

Sam Voter prefers Ronald to Joe, Joe to Gary, and Gary to Ronald. Sam's preferences:

At the equilibrium consumption bundle, which of the following holds?

Suppose you are the manager of a firm that produces Ultrasweet, a sugar substitute. Show graphically the effect of a reduction in the price of Sweet and Healthy, a competitor's product, on a typical consumer's consumption of Ultrasweet.

Sally Consumer's indifference curve between cigarettes and hamburgers is upward sloping. Based on this information, can we conclude that Sally views cigarettes as "bads" and hamburgers as "goods"? Explain.

The income effect isolates the change in the consumption of a good caused by the change in:

When the price of one good increases, the associated income effect is represented by a move from one indifference curve to a:

After a price decrease for good X, the new consumer equilibrium level of good X will be:

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

P_XX + P_YY = M is called:

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?