Question 37 Not yet answered Marked out of 1.000 \\V Flag question Question 38 Not yet answered Marked out of 1.000 \\7 Flag question Question 39 Not yet answered Marked out of 1.000 \\V Flag question 6 moodle,uleth.ca E Search | Perlego 0 Apple Google U EA (page 11 of 24) UofL The substitution effect of a price change 51199.65 Time left 2:22:33 will result in the consumer buying less of a good at a lower price. will result in the consumer buying less of a good at a higher price. outweighs the income effect for Inferior goods. is equal to the income effect for normal goods. is equal to the income effect for interior goods. The marginal rate of substitution always has a positive algebraic value. is constant as one moves along a particular indifference curve is the amount of one good the consumer is willing to give up in exchange for another so as to keep total satisfaction unchanged is the amount of one good the consumer is willing to give up in exchange for another so as to keep total expenditure unchangedt is equal to the price ratio on the budget line. According to the Rolling Stones, "You can't always get what you want." What does this mean in the context of utility maximization? weeps A bundle of goods between the budget line and the origin. Vertical indifference curves. A bundle of goods above the budget line. Downward-sloping indifference curves none of the above Matching Definition 1 2 3 l4llsllell7l 'IO 11 12 Multiple Choice - Ch lgllgl 8 13 14 15 '16H17H18H19' '20H21' 22 23 24 9 Multiple Choice - Ch 26 27 'stzeHsoHsi' '32H33' Multiple Choice - Ch - Extended 8&9 El 47H48H49H50H51H52' 53H\"! a Fill-in-the-Blanks [rellien]frnlfnniinailnnl[null/saline] moodle,uleth.ca E Search | Perlego 0 Apple Google 'J it'll? U EA (page 11 of 24) @ UofL IVIulllple UIIUIUU ' U" 0 a. U - Extended Time left 2:22:29 Ques'im' 39 According to the Rolling Stones, "You can't always get what you want." What does this mean in the context of utility 42 43 44 45 Not yet maximization? \"swered 46 47 '48\"49\"50\"51\"52' 53 '54' 2'43?\" '3'\" f a. A bundle of goods between the budget line and the origin. 1 b. Vertical indifference curves. 55 55 \\V Flag question 0. A bundle of goods above the budget line. d. Downward-sloping indifference curves. , , e, none ofthe above FIII'In'the'BlankS 57 58 59 '60 '61'62\"63\"64\"65' 66 67 68 69 70 71 Quesm" 4'0 Which of the following properties characterizes the consumption bundle selected by an optimizing consumer? Not yet d . . answere a. The ratio of total utilities is equal to the relative price. Appl|cat|on M k d t f 13;: W 0 b. The ratio of income to price equals the marginal rate of substitution. 72 73 ' 74 '75 '76 ' 77 ' 78 ' 79 '80 \\V Hag c. The marginal rate of substitution is equal to the relative price. question d. The marginal rate of substitution is equal to income. Zinish attempt e. None of the above. \"95"\" 41 When considering her budget, what is the highest indifference curve that a consumer can reach? Not yet answered the indifference curve to which the budget constraint is tangent Marked out of . , , . the Indifference curve farthest from the origin 1.000 \\V Hag the indifference curve that intersects the budget constraint in at least two places question the indifference curve for which all combinations of goods are affordable $951057?\" None of the above, moodle,uleth.ca E Search | Perlego 0 Apple Google i'i mi? '~i raii 2 3 U E4 (page 12 cf24) @ UofL lo 63 | . Time left 2:22:24 - "es\"" 4'2 What does the bowed shape of the indifference curve reflect about the consumer's willingness? Not yet _ _ _ , answered _ . . . _ _ Matching Definition a. It reflects his unWIllingness to give up a good that he already has in large quantity. 1 2 3 4 5 6 7 8 9 M k d f 1:8: our 0 b. It reflects his unwillingness to purchase a good that he already has in large quantity. ' ' I ' ' ' \\V Flag c. It reflects his greater willingness to give up a good that he already has in large quantity, W 11 V question d. It reflects his greater willingness to purchase a good that he already has in large quantity. e. None of the above, Multiple Chouce - Ch 8 13 14 15 '16H17H18H19H20H21' \""95"\" 43 What can we say about the amount of each good a consumer is currently consuming? 22 23 24 Not yet d answers a. It is only affected by price. Marked out of . , . . . . 1.000 b. It affects the rate at which she is Willing to trade. Multiple ChOIce _ Ch 9 \\V Flag c. It is only affected by income. 25 26 27 28 29 30 31 ' 32 33 question d. It will NOT affect the marginal rate of substitution. e. None of the above. 34 35 36 \"New\" 44 In which of the following ways will an increase in income cause a consumer's budget constraint to change? MUItlple Chalce - Ch 8 & 9 Not yet - Extended answered 4 ~ . , 4 . y , 38 a. It Will shift outward, parallel to its initial position. Marked out of _ _ _ _ _ ' _ _ _ 1000 b. It Will shift inward, parallel to its initial posmon. ' . . u ,, . 47 \\V Flag c. It Will pivot around the Y aXIS. question d. e, None of the above. It Will pivot around the X aXIs. 55 56 Fill-in-the-Blanks -,,,_.,,,II: iiiiiiAlf,2]l_2\\l2,\\12.li22ii2,lf_,l B moodle,uleth.ca E Search | Perlego 0 Apple Google 'J 'lL'ilT U E4 (page 12 of 24) @ UofL cues..." 44 Time '9\" $2220 Multiple Choice - Ch 8 & 9 In which of the following ways will an increase in income cause a consumer's budget constraint to change? Noiyei - Extended answered , , , , , , , , 37 38 39 40 a. It Will shift outward, parallel to its initial posmon M k d t f 13:): DU 0 b. It will shift inward, parallel to its initial position, 7 ' ' - .... - 47 48 49 50 51 52 53 54 \\7 Flag c. It Will pivot around the Y aXIs. question d. It will pivot around the "X" axis. 5 e. None of the above, Fill-In-the-Blanks Ques'm" 4'5 Which one of the following is NOT an assumption of marginal utility theory? 57 58 59 '60 ' 61 I 52 ' ' 63 ' ' 64 I ' 65' Not yet of answers a. People derive utility from their consumption. 65 67 ' 68 ' 59 ' 70 I 71 ' M k d t f 1:806 0\" 0 b. More consumption yields more total utility. 0. Utility can be measured. V F. . . \\ a? , H . H . , Application question d. Marginal utility diminishes With more consumption. ., ,. 72 73 74 75 76 77 78 79 80 e. Consumers maXImize total utility. Finish attempt Ques'im' 4'6 If a consumer's income decreases, in What way will the budget constraint for cola and pizza change? Not yet answered a. It will shift outward, parallel to the old budget constraint. Marked out of . _ . . 1.000 b. It Will shift inward, parallel to the old budget constraint. \\V Flag c. It Will rotate outward toward pizza because the consumer can afford more pizza. question d. It will rotate outward toward cola because the consumer can afford more cola. e, None of the above. Bren/inn: ham: i - n. n - Question 47 Not yet answered Marked out of 'I.000 \\V Flag question Question 48 Not yet answered Marked out of 1.000 \\V Flag question Question 49 Not yet answered Marked out of 'I.000 \\7 Flag question 6 moodle.uleth.ca E Search | Perlego 0 Apple Google H 11:11? *1 rail 2 U E4 (page 13M 24) UofL Time left 2:22:14 Ms. Birnbaum is buying bottles of beer and bags of pretzels. The marginal utility of the last bottle of beer is 60 and the marginal utility of the last bag of pretzels is 30. The price of beer is $0.30 per bottle and the price of pretzels is $0.20 per bag. Ms. Birnbaum is buying beer and pretzels in the utilitymaximizing amounts. should buy more beer and fewer pretzels. should buy more pretzels and less beer. is NOT spending all her income. Eve-9.55 none of the above Which one of the following statements is FALSE? Indifference curves are negatively sloped. A preference map consists of a series of indifference curves. Indifference curves are bowed out from the origin. The marginal rate of substitution is the magnitude of the slope of an indifference curve, sweeps The marginal rate of substitution increases as a consumer moves up along an indifference curve for ordinary goods. Which of the following is a property of indifference curves? Lower indifference curves are preferred to higher ones. The slope of indifference curves is positive. Indifference curves do NOT cross. Indifference curves are bowed outward. 951.057.! None of the above. Matching Definition 1 2 3 VHSHGIVHSHQ' 10 11 12 Multiple Choice - Ch 8 14 15 '16 '17' 18' 19' 20 '21 Multiple Choice - Ch 9 25 26 27 '28\"29\"30\"31\"32\"33' Multiple Choice - Ch 8 & 9 - Extended :' E 55' Fill-in-the-Blanks moodle,uleth.ca E Search | Perlego 0 Apple Google 'J 'iL'iiT U E4 (page 13 of 24) @ UofL Time left 2:22:10 - Extended \""95"\" 49 Which of the following is a property of indifference curves? 37 38 39 40 41 42 43 44 45 Not yet answered a. Lower indifference curves are preferred to higher ones. 45 M k d t f 1:809 0\" 0 b. The slope of indifference curves is positive, \\V Flag 0. Indifference curves do NOT cross. 55 question d. Indifference curves are bowed outward. e, None of the above. . . Fill-In-the-Blanks 57 58 59 '60 '61'62\"63\"64\"65' Quesm" 50 Assume that a college student purchases only coffee and candy bars. If both coffee and candy bars are normal goods, what 66 67 ' 68 ' 69 ' 70 ' 71 ' Not yet will the income effect associated with a decrease in the price of a candy bar result in? answered :'Aggzed 0'\" of a. a decrease in the consumption of candy bars, and an increase in the consumption of coffee Application \\V H b. a decrease in the consumption of both candy bars and coffee 72 73 ' 74 '75 '76 ' 77 \"78 ' ' 79 ' ' 80' as question c. an increase in the consumption of candy bars, and a decrease in the consumption of coffee d. an increase in the consumption of both candy bars and coffee Finish attempt e. None of the above. \"New\" 51 What can we say about a consumption bundle selected by an optimizing consumer? Not yet answered a. Utility is maximized, and income is minimized. Marked out of H t . . . . . . 1.000 b. Utility is maXImized, and prices are minimized. \\V Flag 0. Utility is maximized subject to budget constraints. question d. Utility is maximized, and indifference curves are linear. e. None of the above. Question 52 Not yet answered Marked out of 1.000 \\V Flag question Question 53 Not yet answered Marked out of 1.000 \\V Flag question Question 54 Not yet answered Marked out of 1.000 B moodleulethca E Search | Perlego 0 Apple Google ll ml? '~l rall: 3 . U E4(page1Aof24) UofL Time left 2:22:04 How can we define the marginal rate of substitution on the graph of consumer choice model? sweeps It is the slope of a budget constraint. It is the ratio between the slope of a budget constraint and an indifference curve. It is the slope of an indifference curve. It is the point at which the budget constraint is tangent to the indifference curve, None of the above. Lord Greystroke uses his limited income to purchase fruits and nuts; he is currently buying 10 pounds of fruits at a price of $2 per pound and 5 pounds of nuts at a price of $6 per pound. The last pound of fruits added 10 units to Lord Greystroke's total utility, while the last pound of nuts added 30 units. Lord Greystroke a. is making the utility-maximizing choice, should buy more fruits and less nuts because the last pound of fruits cost less than the last pound of nuts. should buy more fruits and less nuts because the last dollar spent on fruits added more to total utility than the last dollar spent on nuts, should buy more nuts and less fruits because the last pound of nuts added more to total utility than the last pound of fruits. should buy more nuts and less fruits because the last dollar spent on nuts added more to total utility than the last dollar spent on fruits. The slope of an indifference curve shows a. b. the change in utility from an additional unit of the good. the rate at which the consumer is able to substitute one good in the market. guinea i SECUUII 9 Definition Matchin 1 2 3 l4llsllell7ll8llgl 10 11 12 Multiple Choice - Ch 8 13 14 15 '16H17H18H19H20H21' 22 23 24 Choice - Ch 9 '28\"29H30H31H32H33' Multiple - Extended Choice - Ch 8 & 9 l-gu 2,2 1L- I-u-,-l,_ moodle,uleth.ca E Search | Perlego 0 Apple Google II 'IL'IIT \"I Fall U E4 (page 140f24) Question 54 Not yet answered Marked out of 1.000 \\V Flag question Question 55 Not yet answered Marked out of 1.000 \\V Flag question Question 56 Not yet answered Marked out of 1.000 \\7 Flag question UofL dollar spent on trunts. Time left 2:22:01 The slope of an indifference curve shows the change in utility from an additional unit of the good, the rate at which the consumer is able to substitute one good in the market. is equal to the price ratio at all points. is the rate at which the consumer is willing to exchange one good for another, utility held constant. all of the above Which of the following is a property of indifference curves? sweeps Indifference curves are upward sloping. Indifference curves that are farther from the origin are preferable to indifference curves closer to the origin. Indifference curves are bowed outward from the origin. Indifference curves may or may NOT cross. None of the above, What does a bowed-in indifference curve reflect? 51799.65 a consumer's unwillingness to substitute one good for another a consumer's desire to specialize in the consumption of one good over another a consumer's decreasing willingness to give up a good that she has in abundance a consumer's increasing willingness to give up a good that she has in abundance None of the above. ' :xtenueu 37' 38 '39 '40 '4\" 42' WWW m a Fill-in-the-Blanks 2' '74'75 57' 58 '59 '60 '61' 62' 63' 64 '65 f' Application 7 73 '76! 77\"78\"79\"80' Finish attempt