Week 2 quiz - Week 2 quiz Grade Details1.Question: If, for...

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Week 2 quiz Grade Details 1. Question: If, for a consumer, MUA/PA is greater than MUB/PB, then the consumer Your Answer: has an incentive to consume relatively more A, which will increase his/her MUA. has an incentive to consume relatively more A, which will decrease his/her MUA. CORRECT has an incentive to consume relatively more B, which will increase his/her MUB. has an incentive to consume relatively more B, which will decrease his/her MUB. Points Received: 1 of 1 Comments: 2. Question: In the Edgeworth box diagram for production, Your Answer: a point off the contract curve (or production efficiency locus) cannot have more production of one of the goods than can some point on the curve. a point off the contract curve (or production efficiency locus) can involve more production of both goods than can any point on the curve. a movement from autarky to trade can be associated with a movement along the contract curve (or production efficiency locus). CORRECT the contract curve (or production efficiency locus) will always be the diagonal of the box. Points Received: 1 of 1 Comments: 3. Question: The equilibrium condition for producers (i.e., the condition that exists when the isocost line is tangent to an isoquant) is Your Answer: (MUB/MUA) = (PB/PA). (MUB/PA) = (MUA/PB). (MPPL/r) = (MPPK/w). (MPPL/MPPK) = (w/r). CORRECT Points Received: 1 of 1 Comments: 4. Question: Ignoring the negative sign, the slope of a consumer indifference curve at any given point on the curve reflects Your Answer: the marginal rate of transformation (MRT) in production of one commodity into the other commodity. the marginal rate of technical substitution (MRTS) between the factors of production. the relative prices of the commodities in the consumption bundle of goods. the marginal rate of substitution (MRS) of the consumer between the two goods. CORRECT Points Received: 1 of 1 Comments: 5. Question: The equilibrium condition for consumer behavior pertaining to goods A and B is Your Answer: (MUB/PA) = (MUA/PB). MUB = MUA. (MCB/MCA) = (PB/PA). (MUB/MUA) = (PB/PA). CORRECT Points Received: 1 of 1 Comments: 6. Question: A production isoquant shows the various combinations Your Answer: of two factors of production that can produce the same amount of output of a good. CORRECT ANSWER of two factors of production that can be hired by a firm for the same cost. of two goods that can be produced by the firm with the same quantity of the factors of production. of exports that a country's firms are willing to produce at various terms of trade. INCORRECT
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Points Received: 0 of 1 Comments: 7. Question: In the Edgeworth box diagram in production with two goods and two factors of production, Your Answer: a movement from any point off the production efficiency locus (contract curve) to any point on the locus must involve greater production of one good and less production of the other good. INCORRECT
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Week 2 quiz - Week 2 quiz Grade Details1.Question: If, for...

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