Question 1

-In the figure above, suppose the original budget line is BD. A fall in the price of a compact disc will

Accepted Answer

A)  rotate the budget line to AD. 
B)  rotate the budget line to CD. 
C)  not move the budget line. 
D)  result in a parallel leftward shift of the budget line. 
A)  rotate the budget line to AD. 
B)  rotate the budget line to CD. 
C)  not move the budget line. 
D)  result in a parallel leftward shift of the budget line.

Question 2

-Lizzie's budget line is shown in the figure above. The slope of the budget line is ________ cookies per magazine.

Accepted Answer

A)  2 
B)  -2 
C)  0.5 
D)  -0.5 
A)  2 
B)  -2 
C)  0.5 
D)  -0.5

Question 3

All points below a given indifference curve are

Accepted Answer

A)  less preferred to any point on the indifference curve. 
B)  preferred to any point on the indifference curve. 
C)  definitely affordable. 
D)  Both answers A and C are correct. 
A)  less preferred to any point on the indifference curve. 
B)  preferred to any point on the indifference curve. 
C)  definitely affordable. 
D)  Both answers A and C are correct.

Question 4

-Sue consumes apples and bananas. Suppose Sue's income doubles and the prices of apples and bananas do not change. Sue's budget line will

Accepted Answer

A)  shift leftward and its slope will not change. 
B)  remain unchanged. 
C)  shift rightward and its slope will not change. 
D)  shift rightward and become steeper. 
A)  shift leftward and its slope will not change. 
B)  remain unchanged. 
C)  shift rightward and its slope will not change. 
D)  shift rightward and become steeper.

-In the figure above, suppose the original budget line is BD. A fall in the price of a compact disc will

-Lizzie's budget line is shown in the figure above. The slope of the budget line is ________ cookies per magazine.

All points below a given indifference curve are

-Sue consumes apples and bananas. Suppose Sue's income doubles and the prices of apples and bananas do not change. Sue's budget line will

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension A: Review

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters

Exam 9: Possibilities, Preferences, and Choices

-In the figure above, suppose the original budget line is BD. A fall in the price of a compact disc will

-Lizzie's budget line is shown in the figure above. The slope of the budget line is ________ cookies per magazine.

All points below a given indifference curve are

-Sue consumes apples and bananas. Suppose Sue's income doubles and the prices of apples and bananas do not change. Sue's budget line will

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension A: Review

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters