Multiple choice
Go Tools Window Help conomics Final.pdf Q Q Q Q Search a) that the consumer prefers to combination B b) that the consumer can afford. c) that is less preferred than combination D. Refer to the graph below for Questions 20-22. d) where the marginal utility from good Y is relatively high. e) that is less preferred than combination C. Budget line 16) Referring to the above graph, which of the following statements is false? Hot dogs a) The utility-maximizing consumer will consume at combination B b) The consumer can afford combination D c) The consumer cannot afford combination A d) Combinations B and D yield the same utility e) Combination C is more expensive than combination D 17) Ranked in order from most preferred to least preferred, the consumer would prefer ... 20) In the graph above, the new (black) budget line illustrates the choices for consumer a) A to B, and B to D. with an income equal to... b) C to B, and B to D. a $4. () D to B, and B to C. b. $8. c. $ d) C to B, and B to A. d. $16. e) A to C, and C to D e. an unknown quantity Refer to the graph below for Questions 18 and 19. 21)In the graph above, the shift in the budget line could represent... a. a 20% fall in income. b. a 50% rise in only the price of hot dogs. nuity of Y c. a 50% rise in only the price of hamburgers. d. a 25% rise in the prices of both hot dogs and hamburgers. e. both a. and d. 22) In the graph above, if the price of hamburgers is $3, then the price of hot dogs is... a. $1. Quantity of X b, $1.50 c. $2. 18) Considering point A to be the initial point, and B the point after a change, the above graph d. $3. illustrates .. e. $6. a) an increase in income b) a decrease in income. For Questions 23 and 24, refer to the graph below. c) an increase in the price of good X Wage d) a decrease in the price of good X. e) none of the above. 9)Considering point A to be the initial point, and B the point after a change, which of the following statements is true? a) The consumer enjoys higher utility before the change b) The consumer is maximizing utility given his or her current budget at point B, but not maximizing utility given his or her current budget at point A c) The consumer's marginal utility from consuming good X is lower after the change Quantity of labor d) The quantity chosen of good Y will always be lower after such a change e) After the change, the consumer can no longer afford the combination of goods represented by point A
