1.The slope of a linear demand curve is constant at any point but the elasticity varies from zero to infinity.

Select one:

True

False

2.Suppose that, for a certain consumer, the marginal utility of product A is equal to 40 and its price is $42, while the marginal utility of product B is 30 and its price is $40. What conclusion can be inferred from this?

Select one:

a. This consumer should buy neither product since the prices exceed the marginal utilities.

b. This consumer should buy more of product B and less of product A.

c. This consumer should buy more of product A and less of product B.

d.This consumer should buy more of product B, because it is cheaper.

e. This consumer should buy more of product B because it gives greater value for money.

3.If you are making a loss in the short-run you should immediately stop production

Select one:

True

False

4.A rightward shift in the supply curve for a product could be caused by all of the following except one. Which is the exception?

Select one:

a. A decrease in the price of a product that is a substitute in production.

b. A technological improvement in manufacturing methods.

c. The expectation by suppliers that the future price of the product will be higher.

d. A decrease in the price of a productive resource used in its manufacture.

5.A budget line shows various combinations of two goods you can buy with limited income that provide the same level of satisfaction.

Select one:

True

False