midterm1_practice_solution

midterm1_practice_solution - UCLA Economics 11 Fall 2006...

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UCLA Economics 11 – Fall 2006 Professor Mazzocco PRACTICE MIDTERM: ANSWER KEY NAME: _______________________________________ID:____________________ TA:__________________________________________________________________ Part 1: Multiple Choices 1. Indifference curves a. are non-intersecting. b. are contour lines of a utility function. c. are negatively sloped. d. all of the above. 2. For an individual who consumes only two goods, X and Y , the opportunity cost of consuming one more unit of X in terms of how much Y must be given up is reflected by a. the individual's marginal rate of substitution. b. the market prices of X and Y. c. the slope of the individual's indifference curve. d. none of the above. 3. The slope of the budget constraint line is a. the ratio of the prices ( p x /p y ). b. the negative of the ratio of the prices ( p x /p y ). c. the ratio of income divided by price of y ( I/p y ). d. none of the above. 4. If an individual's indifference curves are convex, his or her MRS will a. diminish as X is substituted for Y . b. increase as X is substituted for Y . c. be undefined except in special cases. d. always depend only on the ratio of X to Y .
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5. If utility is given by U(X, Y) = Min (X, 3 Y) then the bundle (3,2) provides the same utility as the bundle a. (1, 3). b.
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This note was uploaded on 11/17/2010 for the course ECON 11 taught by Professor Cunningham during the Spring '08 term at UCLA.

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midterm1_practice_solution - UCLA Economics 11 Fall 2006...

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