Practice3-2 - 1 A consumer's budget set A includes only combinations of two goods that exhaust the budget B includes only combinations of two goods

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1) A consumer's budget set: A) includes only combinations of two goods that exhaust the budget. B) includes only combinations of two goods that leave the consumer with leftover money. C) is the set of all affordable combinations of two goods. D) Both A and C are correct answers. 2) All combinations of two goods below a consumer's indifference curve generate ________ utility than combinations of the two goods on the curve. A) lower B) greater C) the same D) There is not sufficient information. 3) An increase in one product price but not the other: A) shifts the budget line parallel to the right. B) shifts the budget line parallel to the left. C) changes the slope of the budget line. D) doesn't affect the budget line because income remains constant. 4) Which of the following preference rankings is not consistent with Figure 6.6? A) D is preferred to C. B) C is preferred to B. C) E is preferred to D.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/27/2008 for the course ECON 160B taught by Professor Michaelvardanyan during the Fall '08 term at Binghamton University.

Page1 / 5

Practice3-2 - 1 A consumer's budget set A includes only combinations of two goods that exhaust the budget B includes only combinations of two goods

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online