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5.0
ECP3704 Exam 2 Questions with
Detailed Verified Answers (100%
Correct Answers) /Already Graded A+
Quiz: Joe prefers a three pack of soda to a six-pack. What properties
does this preference violate?
Completeness
Transitivity
More is better
Diminishing MRS
Ans: More is better
Quiz: When the price of one good increases, the associated
income effect is represented by a move from one indifference curve to
a
Lower indifference curve since real income is now higher
Lower indifference curve since real income is now lower
Higher indifference curve since real income is now higher
Higher indifference curve since real income is now lower
Ans: Lower indifference curve since real income is now lower
Quiz: When the price of one good decreases, the associated
substitution effect is represented by a
Sunday, 02 March 2025
,Move from one indifference to a higher indifference curve since real
income is now higher
Move from one indifference to a lower indifference curve since real
income is now lower
Move along a given indifference curve holding real income constant
Move along a given indifference curve since real income increases
Ans: Move along a given indifference curve holding real income constant
Quiz: The substitution affect isolates the change in the
consumption of a good caused by:
The lower "real" income
The change in the relative prices of two goods
The change in consumer preferences
None of the statements associated with this question are correct
Ans: The change in the relative prices of two goods
Quiz: Given that income is $750 and PX = $32 and PY = $8, what is
the market rate of substitution between goods X and Y?
-0.75
-3
-4
-25
Examstudy - Stuvia US
, Ans: -4
Quiz: What is the maximum amount of good Y that can be
purchased if X and Y are the only two goods available for purchase
and PX = $10, PY = $15, X = 30, and M = 600?
10
15
20
25
Ans: 20 M=PX(X) + PY(Y)
Quiz: A cash gift causes the budget line to
Shift to the right in a parallel fashion
Shift to the left in a parallel fashion
Rotate clockwise
None of the statements associated with this question are correct
Ans: Shift to the right in a parallel fashion
Quiz: Indifference curves further from the origin imply
A higher level of satisfaction
A lower level of satisfaction
The same level of satisfaction as any other curve
Examstudy - Stuvia US
In today's fast-paced educational landscape, students need reliable resources to excel in their studies.
5.0
ECP3704 Exam 2 Questions with
Detailed Verified Answers (100%
Correct Answers) /Already Graded A+
Quiz: Joe prefers a three pack of soda to a six-pack. What properties
does this preference violate?
Completeness
Transitivity
More is better
Diminishing MRS
Ans: More is better
Quiz: When the price of one good increases, the associated
income effect is represented by a move from one indifference curve to
a
Lower indifference curve since real income is now higher
Lower indifference curve since real income is now lower
Higher indifference curve since real income is now higher
Higher indifference curve since real income is now lower
Ans: Lower indifference curve since real income is now lower
Quiz: When the price of one good decreases, the associated
substitution effect is represented by a
Sunday, 02 March 2025
,Move from one indifference to a higher indifference curve since real
income is now higher
Move from one indifference to a lower indifference curve since real
income is now lower
Move along a given indifference curve holding real income constant
Move along a given indifference curve since real income increases
Ans: Move along a given indifference curve holding real income constant
Quiz: The substitution affect isolates the change in the
consumption of a good caused by:
The lower "real" income
The change in the relative prices of two goods
The change in consumer preferences
None of the statements associated with this question are correct
Ans: The change in the relative prices of two goods
Quiz: Given that income is $750 and PX = $32 and PY = $8, what is
the market rate of substitution between goods X and Y?
-0.75
-3
-4
-25
Examstudy - Stuvia US
, Ans: -4
Quiz: What is the maximum amount of good Y that can be
purchased if X and Y are the only two goods available for purchase
and PX = $10, PY = $15, X = 30, and M = 600?
10
15
20
25
Ans: 20 M=PX(X) + PY(Y)
Quiz: A cash gift causes the budget line to
Shift to the right in a parallel fashion
Shift to the left in a parallel fashion
Rotate clockwise
None of the statements associated with this question are correct
Ans: Shift to the right in a parallel fashion
Quiz: Indifference curves further from the origin imply
A higher level of satisfaction
A lower level of satisfaction
The same level of satisfaction as any other curve
Examstudy - Stuvia US
