Eco Study Question

The affordable bundle that yields the greatest satisfaction to the consumer is:
Answer
| | the maximum bundle. | | | the equilibrium consumption bundle. | | | the allowable purchasing bundle. | | | the most popular bundle. |
Given that income is $500 and PX = $20 and PY = $5, what is the market rate of substitution between goods X and Y?
Answer
| | 100. | | | 4. | | | -20. | | | 25. |
The budget set defines the combinations of good X and Y that
Answer
| | are desirable to the consumer. | | | are affordable to the consumer. | | | maximizes consumer 's utility. | | | maximizes supplier 's profit. |
The difference between a price decrease and an increase in income is that
Answer
| | A price decrease does not affect the consumption of other goods while an increase in income does. | | | An increase in income does not affect the slope of the budget line while a decrease in price does change the slope. | | | A price decrease decreases real income while an increase in income increases real income. | | | A price decrease leaves real income unchanged while an increase in income increases real income. |
All else held constant, as additional firms enter an industry
Answer
| | more output is available at each given price. | | | less output is available at each given price. | | | the same output is available at each given price. | | | output could increase or decrease at each given price. | | | |

The law of demand states that, holding all else constant:
Answer
| | as price falls, demand will fall also. | | | as price rises, demand will also rise. | | | price has no effect on quantity demanded. | | | as price falls, quantity demanded rises. |
The economic principle that producers are willing to produce more output when price is high is depicted by the:
Answer
| | upward slope of the supply curve. | | | extreme steepness of the supply curve. |