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Unformatted text preview: Homework Assignment 3 Penn State ECON 002 Principles of Microeconomics Clair Smith Name: ______ Michael Costa ___________ LAST 4 DIGITS OF PSU ID: __ 7422 __ Due in class on Monday 4/14/2008 ECON 2 Section: __ 001 ____ Directions: Please type your name and section above, and responses (in boldface type) to questions 1-2. You may draw by hand on the graphs on page 2 after printing your typed responses. Turn in a hardcopy no later than class on Monday 4/14/2008. You may discuss these questions together in preparation, but you should ultimately draft your answers individually. You are free and encouraged to turn in the HW early. 1. Name the economic principle that causes indifference curves to have a shape that is convex to the origin. _________ Marginal Rate of Substitution (MRS) ________ 2. What determines the slope of the budget constraint? What determines the slope of the budget constraint?...
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- Spring '08