Homework 1

# Homework 1 - ECON 520(2011 Fall Kansas State University...

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ECON 520 (2011 Fall) Kansas State University Zijun Luo Page 1 of 2 Homework One Due Date: Monday, October 24 th , 2011 Part 1 Multiple Choice (Circle the correct answer) 1. From the indifference curve map, we can deduce that: A. X is a good, Y is a bad B. Y is a good, X is a bad C. Y is good, then bad; X is good D. X is good, then bad; Y is good 2. A consumer regards both X and Y as “goods” up to a point, after which he regards both as “bads”. The best description of the shape of his indifference curves is that they are: A. U-shaped B. Circular C. Negatively sloped D. Always convex to the origin 3. Which of the following requires only ordinal utility? A. Indifference curves can be drawn B. Marginal utility functions can be used to see how total utility changes as consumption of a good increases C. It can be determined which person in a group wants a prize the most D. We can determine what distribution of goods makes society the most well off 4. If two indifference curves intercept with each other, which of the following axioms/assumptions about preferences as we discussed in class is violated?

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Homework 1 - ECON 520(2011 Fall Kansas State University...

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