The idea that a consumer is limited to selecting a bundle of goods that is affordable is captured by the:
Subject: Economics Multiple Choice Quiz ( MCQ ) and Answer
The property that rules out indifference curves that cross is:
The property that implies that indifference curves are convex to the origin is:
An increase in the price of good X will have what effect on the budget line on a normal X-Y graph?
The absolute value of the slope of the indifference curve is called the:
The affordable bundle that yields the greatest satisfaction to the consumer is:
A situation where a consumer says he does not know his preference ordering for bundlesX and Y would violate the property of:
The possible goods and services a consumer can afford to consume represents the:
What is/are the important things that must be developed when characterizing consumer behavior?
Individuals who purchase services and goods for the purpose of consumption are:
If the price of good X is $10 and the price of good Y is $5, how much of good X would the consumer purchase if her income is $15?
Which of the following is true?
- Indifference curves may intersect
- At a point of consumer equilibrium, the MRS equals 1
- If income increases, a consumer will always consume more of a good
- None of the statements associated with this question are correct
Joe prefers a three pack of soda to a six-pack. What properties does this preference violate?
The difference between a price decrease and an increase in income is that
Suppose a consumer with an income of $100 who is faced with PX = 1 and PY = 1/2. What is the market rate of substitution between good X (horizontal axis) and good Y (vertical axis)?
A firm derives revenue from two sources: goods X and Y. Annual revenues from good X and Y are $10,000 and $20,000, respectively. If the price elasticity of demand for good X is -2.0 and the cross-price elasticity of demand between Y and X is 1.5 then a 4 percent price increase will
A firm derives revenue from two sources: goods X and Y. Annual revenues from good X and Y are $10,000 and $20,000, respectively. If the price elasticity of demand for good X is -4.0 and the cross-price elasticity of demand between Y and X is 2.0 then a 2 percent price decrease will
Suppose the equilibrium price in the market is $60 and the marginal revenue associated with the linear (inverse) demand function is $20. Then we know that the own price elasticity of demand is
Suppose the equilibrium price in the market is $100 and the marginal revenue associated with the linear (inverse) demand function is $50. Then we know that the own price elasticity of demand is
Suppose that at the equilibrium price and quantity the marginal revenue is -$15 and the price elasticity of demand for a linear demand function is -0.75. Then we know that the equilibrium price is
Suppose the equilibrium price in the market is $10 and the price elasticity of demand for the linear demand function at the market equilibrium is -1.25. Then we know that
When marginal revenue is negative, demand is