b. A shift to the right in the supply curve for DVD players and a shift to the left in the demand curve for DVD players.

c. A shift to the left in the supply curve for DVD players and a shift to the right in the demand curve for DVD players.

d. A shift to the left in the supply curve for DVD players and a shift to the left in the demand curve for DVD players.

34. If a consumer is always indifferent between an additional one grapefruit or an additional two oranges, then when oranges are on the horizontal axis the indifference curves:

A. will be straight lines with a slope of -1/2.

b. will be straight lines with a slope of -1.

c. will be convex to the origin.

d. will be right angles whose corners occur on a ray from the origin with a slope of +2.

e. none of the above.

35. If the quantity of good a (Qa) is plotted along the horizontal axis, the quantity of good b (Qb) is plotted along the vertical axis, the price of good a is Pa, the price of good b is Pb and the consumer's income is I, then the slope of the consumer's budget constraint is:

a. -Qa/Qb

b. -Qb/Qa

C. -Pa/Pb

d. -Pb/Pa

e. I/Pa or I/Pb

36. Moving down along a demand curve for apples

a. consumer well-being decreases.

b. the marginal utility of apples decreases.

C. Income is constant.

d. The level of income depends on the level of utility.

38. From 1970 to 1993, the real price of eggs decreased and the total annual consumption of eggs decreased. Which of the following would cause an unambiguous decrease in the real price of eggs and an unambiguous decrease in the quantity of eggs consumed?

a. A shift to the right in the supply curve for eggs and a shift to the right in the demand curve for eggs.

b. A shift to the left in the supply curve for eggs and a shift to the right in the demand curve for eggs.

c. A shift to the left in the supply curve for eggs and a shift to the left in the demand curve for eggs.

d. None of the above.

39. Which of the following is true about the indifference curve where one commodity (such as pollution) is "bad"?

a. It has a negative slope.

B. It has a positive slope.

c. It is horizontal.

d. It is vertical.

40. The magnitude of the slope of an indifference curve is:

A. called the marginal rate of substitution.

b. equal to the ratio of the total utility of the goods.

c. always equal to the ratio of the prices of the goods.

d. all of the above.

e. (a) and (c) only.

Scenario 1:

Daniel derives utility from only two goods, cake (Qc) and donuts (Qd). The marginal utility that Daniel receives from cake (MUc) and donuts (MUd) are given as follows:

MUc = Qd MUd = Qc

Daniel has an income of $240 and the price of cake (Pc) and donuts (Pd) are both $3.

41. What is Daniel's budget constraint?

a. 240 = 3Pc + 3Pd

b. 240 = 3Qc + 3Qd

c. 240 = (Pc)(Qc)

d. 240 = (Qc)(Qd)

e. none of the above

42. What quantity Qc will maximize Daniel's utility given the information above?

a. 0

b. 24

C. 40

d. 60

e. none of the above

Copy your answers to the following table. Cross the right option. 3.4 points.

Date: 2015-12-24; view: 1026