ECN 211 ASU EXAM PAPER 2026
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉Assume you are in a store looking at a shirt you want. You expect
to buy the shirt until you look at the price, then you decide the shirt
is not a good buy. How can your decision be viewed in economic
terms?. Answer: The shirt's marginal utility divided by price was too
low compared to other goods.
◉If the budget line rotates inward and becomes steeper, there is a.
Answer: higher opportunity cost of the good measured on the x-axis.
◉Which of the following is shown by a budget line?
i. The combinations of goods a person can afford
ii. The production possibilities for a person
iii. The combinations of goods a person cannot afford. Answer: i and
iii
◉Any point above a given indifference curve ________ affordable and
is ________ to any point on the indifference curve.. Answer: might or
might not be; preferred
, ◉For Jack, the total utility from three shirts is 50 units and the
marginal utility of one more shirt is 5. The total utility of four shirts
is. Answer: 55
◉Marginal utility is the change in total utility that results from.
Answer: a one-unit change in the quantity of a good consumed.
◉In order to draw Lucky's budget line, we need to know. Answer:
both Lucky's budget and the prices of the goods Lucky consumes.
◉Susan can watch movies or attend plays. The table above gives
combinations of movies and plays that are on her budget line. If the
price of a movie is $10, then her budget for movies and plays is.
Answer: $60 per month
◉Nadir and Nina consume the same goods. If Nadir has more
income than Nina, then Nina's budget line will. Answer: lie to the left
of Nadir's budget line.
◉If a consumer obtains 20 units of utility for the first unit
consumed, 10 for the second, and 5 for the third, what is the total
utility of consuming three units?. Answer: 35 units
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉Assume you are in a store looking at a shirt you want. You expect
to buy the shirt until you look at the price, then you decide the shirt
is not a good buy. How can your decision be viewed in economic
terms?. Answer: The shirt's marginal utility divided by price was too
low compared to other goods.
◉If the budget line rotates inward and becomes steeper, there is a.
Answer: higher opportunity cost of the good measured on the x-axis.
◉Which of the following is shown by a budget line?
i. The combinations of goods a person can afford
ii. The production possibilities for a person
iii. The combinations of goods a person cannot afford. Answer: i and
iii
◉Any point above a given indifference curve ________ affordable and
is ________ to any point on the indifference curve.. Answer: might or
might not be; preferred
, ◉For Jack, the total utility from three shirts is 50 units and the
marginal utility of one more shirt is 5. The total utility of four shirts
is. Answer: 55
◉Marginal utility is the change in total utility that results from.
Answer: a one-unit change in the quantity of a good consumed.
◉In order to draw Lucky's budget line, we need to know. Answer:
both Lucky's budget and the prices of the goods Lucky consumes.
◉Susan can watch movies or attend plays. The table above gives
combinations of movies and plays that are on her budget line. If the
price of a movie is $10, then her budget for movies and plays is.
Answer: $60 per month
◉Nadir and Nina consume the same goods. If Nadir has more
income than Nina, then Nina's budget line will. Answer: lie to the left
of Nadir's budget line.
◉If a consumer obtains 20 units of utility for the first unit
consumed, 10 for the second, and 5 for the third, what is the total
utility of consuming three units?. Answer: 35 units
