Multiple choice

Go Tools Window Help nomics Final.pdf Q Search a) if Michaela's income is $80, the price of books must be $80. . () Graph C b) if Michaela's income is $80, the price of movie tickets must be $12. d) Graph D () Michaela could afford to buy 8 movie tickets and 1 book. e) Graph E d) if Michaela's income is $40, the price of movie tickets must be $5. e) both A and D. Refer to the graph below for Questions 13 and 14. 10) If Michael's budget line changes from the dashed line to the solid line in the above graph, this could be caused by ... Quantity of a) a decrease in her income. b) an increase in her income. c) an increase in the price of books. d) an increase in the price of movie tickets. e) the fact that Michaela decides she likes books less than before. Quantity of X 11) An indifference curve illustrates .. 13) Which of the following statements about points A, B and C on the graph above is false? a) how consumers are indifferent about the location of their own consumption levels a) The consumer enjoys the same level of utility at points A and C. relative to their reference points. b) The marginal rate of substitution falls as one moves from point B to point A. ") Point B will clearly be the utility-maximizing choice for the consumer. b) how consumers get more utility, the more they consume of any particular good. d) The consumer purchases less X and more Y at point C than at point A. how a consumer might trade off different levels of consumption of each of two goods, e) The marginal utility from consuming good X is lower at point A than at point B. while staying at the same utility level. d) the limitations on spending dictated by a consumer's income and prices. e) Band D 14) Which of the following statements about points A, B and C on the graph above is false? a) If the price of Y is relatively very high, the consumer is more likely to end up For Question 12, refer to the graphs below. consuming at point . than at point A. b) At point A, the marginal utility of X is low, and the marginal utility of Y is high, Utility compared to at the other points. ) At point A, the marginal rate of substitution is low, compared to at the other points. d) At point C, the consumer is relatively unwilling to trade off units of good Y for units of good X. The flattening out of the curve as you move from point C to point A is due to diminishing marginal utility, For Questions 15-17 refer to the graph below. 12)Which one of the graphs above illustrates the typical shape of a utility function with diminishing marginal utility? 15)On the above graph, point A represents a combination of goods X and Y .. a) Graph A b) Graph B O C P