ECP3704 EXAM 2 (2026–2027) LATEST UPDATE) –
REAL EXAM QUESTIONS WITH VERIFIED ANSWERS,
A+ GRADED STUDY MATERIAL
What is the horizontal intercept of the budget line, given that M = $1,000, PX =
$50, and PY = $40?
2000.0
20.0
25.0
11.11
20.0
The maximum quantity of good Y that is affordable is:
M/PX
M/X
M/PY
M/Y
M/PY
A price increase causes a consumer's "real" income to:
Decrease
Increase
Remain unchanged
Vary along the budget line
Decrease
The horizontal intercept of the budget line is:
-PX/PY
M/PX
, M/PY
PYY
M/PX
Sam Voter prefers Ronald to Joe, Joe to Gary, and Gary to Ronald. Sam's
preferences
Are consistent with our assumptions about consumer behavior
Indicate that he is a liberal
Are not complete
Are not transitive
Are not transitive
The idea that a consumer is limited to selecting a bundle of goods that is
affordable is captured by the:
Budget constraint
Indifference curve
Consumer equilibrium
Price changes
Budget constraint
If a consumer's income decreases, what will happen to the budget line?
It will shift outward
It will become steeper
It will become flatter
It will shift inward
It will shift inward
The property that implies that indifference curves are convex to the origin is:
More is better
Completeness
Transitivity
Diminishing marginal rate of substitution
Diminishing marginal rate of substitution
REAL EXAM QUESTIONS WITH VERIFIED ANSWERS,
A+ GRADED STUDY MATERIAL
What is the horizontal intercept of the budget line, given that M = $1,000, PX =
$50, and PY = $40?
2000.0
20.0
25.0
11.11
20.0
The maximum quantity of good Y that is affordable is:
M/PX
M/X
M/PY
M/Y
M/PY
A price increase causes a consumer's "real" income to:
Decrease
Increase
Remain unchanged
Vary along the budget line
Decrease
The horizontal intercept of the budget line is:
-PX/PY
M/PX
, M/PY
PYY
M/PX
Sam Voter prefers Ronald to Joe, Joe to Gary, and Gary to Ronald. Sam's
preferences
Are consistent with our assumptions about consumer behavior
Indicate that he is a liberal
Are not complete
Are not transitive
Are not transitive
The idea that a consumer is limited to selecting a bundle of goods that is
affordable is captured by the:
Budget constraint
Indifference curve
Consumer equilibrium
Price changes
Budget constraint
If a consumer's income decreases, what will happen to the budget line?
It will shift outward
It will become steeper
It will become flatter
It will shift inward
It will shift inward
The property that implies that indifference curves are convex to the origin is:
More is better
Completeness
Transitivity
Diminishing marginal rate of substitution
Diminishing marginal rate of substitution
