Multiple choice

QUESTION 17 A curve that represents combinations of two goods that yield equal levels of satisfaction isa(n): ('7 indifference cun/e. C; budget curve. C marginal utility curve. C, price-consumption curve. QUESTION 18 Atypical indifference curve is: C downward sloping and has a slope that is the negative of the marginal utility of the horizontal axis good divided by the marginal utility of the good measured on the vertical axis. C, upward sloping and has a slope that is the negative ofthe marginal utility ofthe horizontal axis good divided by the marginal utility ofthe good measured on the vertical axis. C; downward sloping and has a slope that is the negative of the total utility of the horizontal axis good divided by the total utility of the good measured on the vertical axis. C downward sloping and has a slope that is the total cost of the horizontal axis good divided by the total cost of the good measured on the vertical axis. QUESTION 19 A consumer maximizes utility. given her income. when she chooses a consumption bundle whose: C; marginal utility of each good is equal. C highest indifference curve is tangent to the budget line. C marginal rate of substitution is highest. C: marginal utility of each good is highest. QUESTION 20 According to the relative price rule, the optimal consumption bundle between hot dogs and beer takes place when the rate of substitution is their relative price. C, total; equal to C marginal; equal to C marginal; higher than C, total; lower than QUESTION 21 After learning about indifference curves, Sandy realizes that her marginal rate of substitution of grapes for cheese is equal to 2. Since the price of cheese is $3 and the price of grapes is $1, Sandy: \"A should buy more grapes and less cheese. C\"; should buy more cheese and fewer grapes. 7' is maximizing her utility. f\"; is on her highest possible indifference curve, QUESTION 22 Decreases in the price of the good measured on the horizontal axis will make the horizontal intercept and make the budget line by larger; steeper 7'; larger; atter O smaller; steeper C' smaller; atter QUESTION 23 Marginal utility of a good refers to f\"; the amount total utility rises when consumption ofthe good increases by one unit. C' the diminishing amount of utility the consumer receives as consumption of the good increases. 0 the change in the amount of the good consumed that increases total utility by one unit. \"I the point where the consumer's total utility is at a maximum. QUESTION 24 Using the utility approach, the consumer is in equilibrium when O the marginal utility associated with consuming the last unit is zero. C\"; total utility from each good is at a maximum. C'; the marginal utilities associated with consuming an extra unit of each good are equal. 7'; the marginal utility per dollar's worth of each good is equal