Question 1

Exhibit 6-29   Which graph in Exhibit 6-29 shows the effect of an increase in the price of clothing, other things constant?

Accepted Answer

A) Graph a 
B) Graph b 
C) Graph c 
D) Graph d 
E) Graph e 
A) Graph a 
B) Graph b 
C) Graph c 
D) Graph d 
E) Graph e

Question 2

Exhibit 6-30   Consider Exhibit 6-30.Assume that you have $600 to spend on books and compact disks.What is the current price of compact disks?

Accepted Answer

A) $1 
B) $5 
C) $10 
D) $60 
E) unable to determine 
A) $1 
B) $5 
C) $10 
D) $60 
E) unable to determine

Question 3

A family on a trip budgets $200 for restaurant meals and fast food.The family can buy 20 restaurant meals if they don't buy any fast-food meals.What is the vertical intercept of the budget line when fast food is measured on the horizontal axis?

Accepted Answer

A) 1/20 
B) 200 
C) 10 
D) 20 
E) $400 
A) 1/20 
B) 200 
C) 10 
D) 20 
E) $400

Question 4

Exhibit 6-24   Which point in Exhibit 6-24 yields the greatest amount of total satisfaction?

Accepted Answer

A) point a 
B) point b 
C) point c 
D) point d 
E) point e 
A) point a 
B) point b 
C) point c 
D) point d 
E) point e

Question 5

Exhibit 6-30   Consider Exhibit 6-30.Assume that you have $600 to spend on books and compact disks.What happens if the price of books falls to $5?

Accepted Answer

A) The budget line shifts inward along the horizontal axis. 
B) The budget line shifts inward along the vertical axis. 
C) The budget line does not move. 
D) The budget line shifts outward along the vertical axis. 
E) The budget line shifts outward along the horizontal axis. 
A) The budget line shifts inward along the horizontal axis. 
B) The budget line shifts inward along the vertical axis. 
C) The budget line does not move. 
D) The budget line shifts outward along the vertical axis. 
E) The budget line shifts outward along the horizontal axis.

Question 6

All combinations of goods along a budget line are affordable with a given level of income.

Accepted Answer

A) True 
 B)False

Question 7

An indifference curve slopes downward to the right because

Accepted Answer

A) more goods are preferable to less 
B) goods are substitutes for each other 
C) the consumer has a limited income 
D) the opportunity costs of goods differ 
E) of the budget constraint 
A) more goods are preferable to less 
B) goods are substitutes for each other 
C) the consumer has a limited income 
D) the opportunity costs of goods differ 
E) of the budget constraint

Exhibit 6-29 Which graph in Exhibit 6-29 shows the effect of an increase in the price of clothing, other things constant?

Exhibit 6-30 Consider Exhibit 6-30.Assume that you have $600 to spend on books and compact disks.What is the current price of compact disks?

A family on a trip budgets $200 for restaurant meals and fast food.The family can buy 20 restaurant meals if they don't buy any fast-food meals.What is the vertical intercept of the budget line when fast food is measured on the horizontal axis?

Exhibit 6-24 Which point in Exhibit 6-24 yields the greatest amount of total satisfaction?

Exhibit 6-30 Consider Exhibit 6-30.Assume that you have $600 to spend on books and compact disks.What happens if the price of books falls to $5?

All combinations of goods along a budget line are affordable with a given level of income.

An indifference curve slopes downward to the right because

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

B--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters

Exam 6: Appendix--Indifference Curves and Utility Maximization

Exhibit 6-29 Which graph in Exhibit 6-29 shows the effect of an increase in the price of clothing, other things constant?

Exhibit 6-30 Consider Exhibit 6-30.Assume that you have $600 to spend on books and compact disks.What is the current price of compact disks?

A family on a trip budgets $200 for restaurant meals and fast food.The family can buy 20 restaurant meals if they don't buy any fast-food meals.What is the vertical intercept of the budget line when fast food is measured on the horizontal axis?

Exhibit 6-24 Which point in Exhibit 6-24 yields the greatest amount of total satisfaction?

Exhibit 6-30 Consider Exhibit 6-30.Assume that you have $600 to spend on books and compact disks.What happens if the price of books falls to $5?

All combinations of goods along a budget line are affordable with a given level of income.

An indifference curve slopes downward to the right because

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

B--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Externalities and the Environment

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters