Econ 301 Exam 2025 Questions and
Answers
An engel curve is a demand curve with the vertical and horizontal axes reversed. -
--CORRECT ANSWER--False
Define a binary relation R by xRy if person x is weakly heavier and weakly heavier
and weakly taller than person y. This binary relation R is complete. - --CORRECT
ANSWER--false
In economic theory, the demand for a good must depend only on income and its
own price and not on the prices of other goods. - --CORRECT ANSWER--False
u = X1 times X2 and u=X1^3 times X2^3/10 +5 represent the same preference. -
--CORRECT ANSWER--true
Max Gross has the utility function U(x,y)= max{x,y}. If the price of x is the same
as the price of y, max will buy equal amounts of x and y - --CORRECT ANSWER-
-false
A person with the utility function U(x,y)= y+x^2 has a convex preferences. - --
CORRECT ANSWER--False
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, If consumers spend all of their income, it is impossible for all goods to be inferior
goods. - --CORRECT ANSWER--True
A consumer with convex preferences who is indifferent between the bundles (5,2)
and (11,6) will like the bundle (8,4) at least as well as either of the first two bundles.
- --CORRECT ANSWER--True
A decrease in income pivots the budget line around the bundle initially consumed.
- --CORRECT ANSWER--False
Bill Katz prefers more of good 1 to less and he prefers less of good 2 to more. Bill
has convex preferences. If we draw his indifference curves with good 1 on the
horizontal axis and good 2 on the vertical axis them his indifference curves have
positive slope but get stepper as they rise. - --CORRECT ANSWER--False
Ambrose has the utility function U(X1,X2)= 4x^1/2 +x2. If Ambrose is initially
consuming 64 units of nuts (x1) and 10 units of berries (x2) then what is the largest
number of berries that he would be willing to give up in return for an additional 17
units of nuts. - --CORRECT ANSWER--4
Charlies utility function is U(XaXb)=XaXb. If Charlie income is $40, the price of
apples is $4, and the price of bananas is $2, how many apples are there in the best
bundle that Charlie can afford. - --CORRECT ANSWER--5
Professor Goodheart's colleterm-15ague Dr. Kremepuff gives 3 midterm exams.
He drops the lowest score and gives each student her average score on the other
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
Answers
An engel curve is a demand curve with the vertical and horizontal axes reversed. -
--CORRECT ANSWER--False
Define a binary relation R by xRy if person x is weakly heavier and weakly heavier
and weakly taller than person y. This binary relation R is complete. - --CORRECT
ANSWER--false
In economic theory, the demand for a good must depend only on income and its
own price and not on the prices of other goods. - --CORRECT ANSWER--False
u = X1 times X2 and u=X1^3 times X2^3/10 +5 represent the same preference. -
--CORRECT ANSWER--true
Max Gross has the utility function U(x,y)= max{x,y}. If the price of x is the same
as the price of y, max will buy equal amounts of x and y - --CORRECT ANSWER-
-false
A person with the utility function U(x,y)= y+x^2 has a convex preferences. - --
CORRECT ANSWER--False
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
, If consumers spend all of their income, it is impossible for all goods to be inferior
goods. - --CORRECT ANSWER--True
A consumer with convex preferences who is indifferent between the bundles (5,2)
and (11,6) will like the bundle (8,4) at least as well as either of the first two bundles.
- --CORRECT ANSWER--True
A decrease in income pivots the budget line around the bundle initially consumed.
- --CORRECT ANSWER--False
Bill Katz prefers more of good 1 to less and he prefers less of good 2 to more. Bill
has convex preferences. If we draw his indifference curves with good 1 on the
horizontal axis and good 2 on the vertical axis them his indifference curves have
positive slope but get stepper as they rise. - --CORRECT ANSWER--False
Ambrose has the utility function U(X1,X2)= 4x^1/2 +x2. If Ambrose is initially
consuming 64 units of nuts (x1) and 10 units of berries (x2) then what is the largest
number of berries that he would be willing to give up in return for an additional 17
units of nuts. - --CORRECT ANSWER--4
Charlies utility function is U(XaXb)=XaXb. If Charlie income is $40, the price of
apples is $4, and the price of bananas is $2, how many apples are there in the best
bundle that Charlie can afford. - --CORRECT ANSWER--5
Professor Goodheart's colleterm-15ague Dr. Kremepuff gives 3 midterm exams.
He drops the lowest score and gives each student her average score on the other
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
