sample+quiz+6a[1]

# sample+quiz+6a[1] - Appendix to Chapter 6 Indifference...

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Appendix to Chapter 6 Indifference Curve Analysis MULTIPLE CHOICE 2. Topic: Indifference curve, Difficulty: M, Type: RE, Answer: d The slope of an indifference curve is ____________ and a movement along the curve causes the loss in marginal utility (MU) of one good to _____________ the marginal utility (MU) gained from another good. a. zero; maximize b. positive; exceed c. concave; reduce d. negative; equal 3. Topic: Indifference curve, Difficulty: E, Type: RE, Answer: a When quantities of two goods belong to the same indifference curve, which of the following is true ? a. The combinations of the two goods along the indifference curve yield the same total utility. b. Prices of the two goods are equal. c. Marginal utilities of both goods are equal. d. The total utility of all combinations above the curve equal zero. 12. Topic: Marginal rate of substitution, Difficulty: E, Type: RE: Answer: d The absolute value of the slope of an indifference curve is called the: a. marginal rate of transformation. b.

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sample+quiz+6a[1] - Appendix to Chapter 6 Indifference...

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