Chapter_9_problem_set

# Chapter_9_problem_set - Exam Name MULTIPLE CHOICE Choose...

This preview shows pages 1–3. Sign up to view the full content.

Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which one of the following statements best describes a consumer's budget line? 1) _______ A) the amount of each good a consumer can purchase B) the desired level of consumption for a consumer C) the limits to a consumer's set of affordable consumption choices D) the set of all affordable consumption choices E) the consumption choices made by a consumer 2) Let Y = \$100, Q X = quantity of good X , and Q W = quantity of good W , P X = \$4 and P W = \$5. The budget equation is shown as 2) _______ A) Q X = Q W + (4/5) Y . B) 100 = 4 Q X + 5 Q W . C) Q X = 100 + (4/5) Q W . D) 100 = Q X + (4/5) Q W . E) Q W = Q X + (4/5) Y . 3) An indifference curve is best defined as 3) _______ 4) A consumer always has a cup of coffee with a tablespoon of sugar. What would the consumer's indifference curves for these two goods look like? 4) _______ A) nearly straight - lined B) straight - lined C) tightly curved D) upward sloping E) L - shaped. 5) Normal goods are defined as goods whose consumption 5) _______ 6) For an inferior good, which statement is true? 6) _______

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

View Full Document
Use the figure below to answer the following question(s). Figure 8.10 7) Consider an initial budget line labelled RS in Figure 8.10. What would cause the budget line to shift to RT ?
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern