ECONOMICS 203 Quiz 3_ECON 203 PRINCIPLES OF ECONOMETHICS Questions and Answers
Question 1 1 / 1 point The ________________ arises when a price changes because consumers have an incentive to consume less of the good with a relatively higher price and more of the good with a relatively lower price. a) preferences effect b) substitution effect c) income effect d) backward-bending supply curve Question 2 1 / 1 point Marginal utility can: a) increase positively, but not negatively b) be positive or negative, but not zero c) be positive, negative, or zero d) decrease, but not become negative Chapter 6 American households Question 3 0 / 1 point Approximately what portion of annual consumption is typically spent by American households on shelter? a) one-fourth b) one-quarter c) one-half d) one-third Chapter 6 maximizing utility
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