Clicker questions Feb 1 _ 3 - carrots are a normal and...

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1 Find the marginal rate of substitution of the following utility function: A. The budget constraint is tangent to the indifference curve associated with maximum achievable utility. B. Marginal Rate of Substitution is equal to the Opportunity Cost C. D. E. All of the above and the Lagrange Multiplier is super cool! Which of the following is true about the Lagrange Method? The kink point on a budget constraint with an inward- directed kink could be chosen as a maximum. A.True B.False If I have homothetic tastes over peas and carrots, then A. peas and carrots are normal goods and necessities. B. peas and carrots are normal goods and luxuries. C. peas are an inferior and necessity good, while
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Unformatted text preview: carrots are a normal and luxury good. D. peas and carrots are both normal goods and on the border between luxuries and necessities. E. peas and carrots are on the border between normal and inferior goods and are on the border between luxuries and necessities. 2 In the example, apples are a(n) A. Inferior good B. Normal good C. On the border between inferior and normal D. There is not enough information to tell For the following price change, the optimal bundle is likely to A. Be on line segment A D. Still be point D B. Be on line segment B E. There is not enough C. Be on line segment C information to tell...
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This note was uploaded on 09/11/2011 for the course ECON 100A taught by Professor Woroch during the Spring '08 term at University of California, Berkeley.

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Clicker questions Feb 1 _ 3 - carrots are a normal and...

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