Exam 21: The Theory of Consumer Choice

Figure 21-31 The figure shows two indifference curves and two budget constraints for a consumer named Kevin. -Refer to Figure 21-31. If point A is Kevin's optimum, then at that optimum, what is his opportunity cost of a shirt in terms of sweaters?

Each of the following are characteristics of a typical indifference curve map except

Assume that a college student purchases only Ramen noodles and textbooks. If Ramen noodles are an inferior good and textbooks are a normal good, then the substitution effect associated with a decrease in the price of a textbook, by itself, will result in

The following diagram shows a budget constraint for a particular consumer. If the price of X is $5, what is the consumer's income?

Good X is an inferior good but not a Giffen good. When the price of X increases, the consumer will consume

The substitution effect from an increase in wages is evident in a

The indifference curves for nickels and dimes are straight lines.

If Rita's labor-supply curve is downward-sloping, then for Rita​

Figure 21-12 -Refer to Figure 21-12. The marginal rate of substitution between bundles V and Z is

Figure 21-5 (a) (b) -Refer to Figure 21-5. In graph (b), if income is equal to $420, then the price of good Y is

Figure 21-2 The downward-sloping line on the figure represents a consumer's budget constraint. -Refer to Figure 21-2. A consumer who chooses to spend all of her income could be at which point(s) on the figure?

Consider two goods: peanuts and crackers. The slope of the consumer's budget constraint is measured by the

An increase in a consumer's income

List and briefly explain each of the four properties of indifference curves.

A worker with a backward-bending labor supply curve responds to an increase in wages by working more hours.

Figure 21-8 -Refer to Figure 21-8. You have $36 to spend on good X and good Y. If good X costs $6 and good Y costs $12, your budget constraint is

A consumer who doesn't spend all of her income

Figure 21-11 -Refer to Figure 21-11. The graph illustrates

For Molly, the substitution effect of a wage increase is stronger than the income effect. In response to a wage increase, will Sally work more hours or will she work fewer hours?

The slope of the budget constraint is all of the following except