Econ 302 Quiz

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  • Topic: Consumer theory, Indifference curve, Budget constraint
  • Pages : 4 (535 words )
  • Download(s) : 408
  • Published : November 7, 2011
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1.
If the consumer's budget constraint is given by 10F + 5S = 100 where F is food and S is shelter, how much food can he buy if he purchases 2 units of shelter? Plug in number

Student ResponseValue
A.10
B.5
C.20
D.9100%

Score:1/1

2.
If the consumer's budget constraint is given by 10F + 5S = 100 where F is food and S is shelter, what is the opportunity cost of food in terms of shelter? F/S

Student ResponseValue
A.5
B.2
C.15
D.100%

Score:1/1

3.
If the consumer's budget constraint is given by 4P + 2B = 50 where P is Pizza and B is Burgers, the following bundles of Pizza and Burger would be on the budget constraint: Plug in numbers

Student ResponseValue
A.P = 2; B = 21100%
B.P = 5; B = 10
C.P = 2; B = 24
D.P = 10; B = 20

Score:1/1

4.
An increase in the price of one good will cause

Student ResponseValue
A.An inward rotation of the budget curve
B.An outward rotation of the budget curve
C.A parallel shift in the budget curve
D.An inside shift of the budget curve0%

Score:1/1

5.
An increase in income with no changes in the price of either good will cause

Student ResponseValue
A.An inward shift of the budget curve
B.An outward shift of the budget curve100%
C.No change in the budget curve
D.An inward rotation of the budget curve

Score:1/1

6.
Suppose you are choosing between milk and cookies. If the opportunity cost of cookies in terms of milk increases, then the budget curve will:

Student ResponseValue
A.shift inward
B.rotate inward.100%
C.shift outward
D.rotate outward

Score:1/1

7.
I prefer 10 apples and 6 oranges to 9 apples and 3 oranges. This is an example of

Student ResponseValue
A.Transitivity
B.Completeness
C.More is better100%
D.Convexivity

Score:1/1

8.
The budget constraint shown below is consistent with a pricing strategy that...
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