Economics Chapter 10 Correct Feedback Correct This The Method Maximizing

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Test Canvas : Self-Test Quiz – Chapter 10

Microeconom ics, 3e

Test Canvas: Self-Test Quiz – Chapter 10

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Total Questions 20

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1. Multiple Choice: The collection of all the goods and s…

Question The collection of all the goods and services you consume is your:

Answer

utility.

2. Multiple Choice: Andrea has a monthly income of $…

Question Andrea has a monthly income of $840. She spends all of her money on two goods–

leasing an apartment and eating at restaurants. If her apartment rent is $560 per

month, how many restaurant meals can she buy each month if the cost of each

meal is $14?

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Points: 1

3. Multiple Choice: Marcel consumes only tea and pastries...

Question Marcel consumes only tea and pastries. A cup of tea costs 5 euros and a pastry

costs 8 euros. His weekly income is 450 euros. Marcel always drinks 2 cups of tea

for every pastry he consumes. The optimal weekly consumption bundle for Marcel

consists of:

4. Multiple Choice: Chinua spends all his money on fish a…

Question Chinua spends all his money on fish and coconuts. His budget line is drawn with

fish on the vertical axis and coconuts on the horizontal axis. If the price of fish

Points: 1

5. Multiple Choice: Latisha has maximized her utility by ...

Question Latisha has maximized her utility by consuming both strawberry shakes and

hamburgers. The price of hamburgers exceeds that of strawberry shakes. Which of

the following statements necessarily must be correct at her current consumption

point?

6. Multiple Choice: Dimiti spends all of his income on ch…

Question Dimiti spends all of his income on cheese and wine. A bottle of wine costs $20,

and a pound of cheese costs $12. At his current consumption level, the marginal

utility of a pound of cheese is 30 utils, and the marginal utility of a bottle of wine is

60 utils. In order to maximize his utility, Evan should:

Points: 1

7. Multiple Choice: What is the set of consumption possib...

Question What is the set of consumption possibilities for an individual?

8. Multiple Choice: The horizontal intercept of the budge…

Question The horizontal intercept of the budget line is determined by the price:

9. Multiple Choice: You are graphing the budget line for ...

Question You are graphing the budget line for an individual who consumes coffee and bread.

How is the budget line affected when the consumers income increases?

Points: 1

10. Multiple Choice: The optimal consumption rule asserts ...

Question The optimal consumption rule asserts that consumers will consume at the point

where the:

11. Multiple Choice: Which of the following would make the…

Question Which of the following would make the budget line steeper?

Points: 1

12. Multiple Choice: Which of the following would make the…

Question Which of the following would make the budget line flatter?

13. Multiple Choice: When the price of air travel rises, b...

Question When the price of air travel rises, both the income and substitution effects play a

role in the response. The income effect describes what happens due to the:

14. Multiple Choice: An increase in the price of CDs:

Question An increase in the price of CDs:

Points: 1

15. Multiple Choice: Economic theory asserts that:

Question Economic theory asserts that:

16. Multiple Choice: Which of the following statements is ...

Question Which of the following statements is true?

Points: 1

17. Multiple Choice: What is measured on the horizontal ax…

Question What is measured on the horizontal axis when graphing a utility function?

18. Multiple Choice: Which of the following is true of a G…

Question Which of the following is true of a Giffen Good?

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19. Multiple Choice: The downward slope of the budget line…

Question The downward slope of the budget line reflects that:

20. Multiple Choice: Economic theory asserts that:

Question Economic theory asserts that:

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