MICROECONOMIC THEORY: Basic Principles
and Extensions, 11th Edition
Test Bank
The following Test Bank contains more than 300 multiple-choice questions
on Chapters 3-19 of Microeconomic Theory: Basic Principles and Extensions, 11th
Edition by Christopher Snyder and Walter Nicholson. Consistent with the limitations
of the multiple-choice format, these questions are generally easier and somewhat
less mathematical than are the problems in the text. Still, the questions are
probably a bit more analytical than is usual for assessments of this type. But these
questions clearly are not intended to substitute for the problems but rather to serve
as a device for instructors to offer to students some convenient review or quiz
materials.
,CHAPTER 3:
Preferences and Utility
3.1 Indifference curves
a. may sometimes intersect.
b. are contour lines only of a linear utility function.
c. are convex if the utility function is quasi-concave.
d. shift when prices change.
ANSWER: c
3.2 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 individual's marginal rate of substitution.
b. the market prices of x and y.
c. the slope of the individual's indifference curve.
d. none of the above.
, ANSWER: b
3.3 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.
ANSWER: c
Questions 3.4 and 3.5 refer to an individual whose utility function is given by
3.4 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).
ANSWER: b
3.5 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.
ANSWER: c
3.6 Which of these utility functions represent the same preferences as
?
and Extensions, 11th Edition
Test Bank
The following Test Bank contains more than 300 multiple-choice questions
on Chapters 3-19 of Microeconomic Theory: Basic Principles and Extensions, 11th
Edition by Christopher Snyder and Walter Nicholson. Consistent with the limitations
of the multiple-choice format, these questions are generally easier and somewhat
less mathematical than are the problems in the text. Still, the questions are
probably a bit more analytical than is usual for assessments of this type. But these
questions clearly are not intended to substitute for the problems but rather to serve
as a device for instructors to offer to students some convenient review or quiz
materials.
,CHAPTER 3:
Preferences and Utility
3.1 Indifference curves
a. may sometimes intersect.
b. are contour lines only of a linear utility function.
c. are convex if the utility function is quasi-concave.
d. shift when prices change.
ANSWER: c
3.2 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 individual's marginal rate of substitution.
b. the market prices of x and y.
c. the slope of the individual's indifference curve.
d. none of the above.
, ANSWER: b
3.3 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.
ANSWER: c
Questions 3.4 and 3.5 refer to an individual whose utility function is given by
3.4 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).
ANSWER: b
3.5 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.
ANSWER: c
3.6 Which of these utility functions represent the same preferences as
?
