Scribd Logo
Upload

Welcome to Scribd!

  • 179 views

    Chapter 3: Practice Quiz: U (X, Y) 4x + 2y

    Uploaded by

    Kyle
    1. Indifference curves are nonintersecting contour lines of a utility function that are negatively sloped. 2. The opportunity cost of consuming more of good X is reflected by the slope of the indifference curve, which is the marginal rate of substitution. 3. If bundles of goods lie on the same indifference curve, the individual enjoys them equally.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    Chapter 3: Practice Quiz: U (X, Y) 4x + 2y

    Uploaded by

    Kyle
    179 views2 pages
    1. Indifference curves are nonintersecting contour lines of a utility function that are negatively sloped. 2. The opportunity cost of consuming more of good X is reflected by the slope of the indifference curve, which is the marginal rate of substitution. 3. If bundles of goods lie on the same indifference curve, the individual enjoys them equally.

    Original Description:

    eco 11

    Original Title

    Practice Quiz 03

    Copyright

    © © All Rights Reserved

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1. Indifference curves are nonintersecting contour lines of a utility function that are negatively sloped. 2. The opportunity cost of consuming more of good X is reflected by the slope of the indifference curve, which is the marginal rate of substitution. 3. If bundles of goods lie on the same indifference curve, the individual enjoys them equally.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    179 views2 pages

    Chapter 3: Practice Quiz: U (X, Y) 4x + 2y

    Uploaded by

    Kyle
    1. Indifference curves are nonintersecting contour lines of a utility function that are negatively sloped. 2. The opportunity cost of consuming more of good X is reflected by the slope of the indifference curve, which is the marginal rate of substitution. 3. If bundles of goods lie on the same indifference curve, the individual enjoys them equally.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    You are on page 1of 2

    Chapter 3: Practice Quiz

    1.

    *
    2.
    *

    3.

    Indifference curves
    a.
    are nonintersecting.
    b.
    are contour lines of a utility function.
    c.
    are negatively sloped.
    d.
    all of the above.
    For an individual who consumes only two goods, x and y, the opportunity cost of
    consuming one more unit of X in terms of how much Y must be given up is reflected by
    a.
    the individuals marginal rate of substitution.
    b.
    the market prices of x and y.
    c.
    the slope of the individuals indifference curve.
    d.
    none of the above.
    If bundles of goods A and B lie on the same indifference curve, one can assume the
    individual
    a.
    prefers bundle A to bundle B.
    b.
    prefers bundle B to bundle A.
    c.
    enjoys bundle A and B equally.
    d.
    bundle A contains the same goods as bundle B.

    Questions 4 and 5 refer to an individual whose utility function is given by


    U(x, y) = 4x + 2y
    4.
    *

    5.
    *

    6.

    With this utility function, the bundle (3, 2) provides the same utility as the bundle
    a.
    (2, 3).
    b.
    (2, 4).
    c.
    (2, 5).
    d.
    (3, 3).
    For this utility function, the MRS
    a.
    depends on the values of x and y.
    b.
    is always 0.
    c.
    is always 2.
    d.
    is always 4.
    Which of the following utility functions represent the same preferences as U ( x, y ) x y
    ?
    a.
    U ( x, y ) 10 xy .
    b.
    c.

    U(x, y) = x y.
    U(x, y) = lnx + lny.
    d.
    All of the above represent the same preferences.

    Chapter 9/Profit Maximization 2

    7.
    *

    8.

    *
    9.

    If utility is given by U ( x, y ) xy , then the persons MRS at the point x = 5, y = 2 is


    given by
    a.
    0.4.
    b.
    1.0.
    c.
    2.5.
    d.
    5.0.
    If utility is given by U ( x, y ) x 2 2 xy y 2 , this persons indifference curves are
    a.
    parabolas.
    b.
    hyperbolas.
    c.
    concentric circles.
    d.
    straight lines.
    Which of the following utility functions best represents the idea that two goods, x and y,
    are perfect complements?
    a.
    U ( x, y ) xy
    b.
    U(x, y) = x + y.
    U ( x, y ) = | x y | .
    c.
    d.
    U(x, y) = min(x, y).

    10.
    *

    If an individuals utility function is quasiconcave, his or her MRS will


    a.
    diminish as x is substituted for y.
    b.
    increase as x is substituted for y.
    c.
    be undefined except in special cases.
    d.
    always depend only on the ratio of x to y.

    11.

    If utility is given by U(x, y) = Min (x, 3y) then the bundle (3,2) provides the same utility as
    the bundle
    a.
    (1, 3).
    b.
    (2, 3).
    c.
    (4, 1).
    d.
    (4, 2).

    *
    12.

    Which of the following utility functions would not be consistent with the notion that x and
    y are both goods with positive marginal utilities?
    a.
    U ( x, y ) = x 2 y .
    b.
    U(x, y) = x + y .
    U ( x, y ) = x y .
    c.
    d.
    U(x, y) = x/y .

    You might also like