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53. As long as a consumer remains on the same indifference curve,
a.
she is indifferent to all points that lie on any other indifference curve.
b.
her preferences will not affect the marginal rate of substitution.
c.
she is unable to decide which bundle of goods to choose.
d.
she is indifferent among the points on that curve.
54. Assume that a consumer’s indifference curve is bowed inward and satisfies the other three properties of indifference
curves. As the consumer moves from left to right along the horizontal axis, the consumer’s marginal rate of substitution
a.
increases.
b.
decreases.
c.
remains constant.
d.
increases, then decreases.
55. Assume Victoria’s indifference curves are bowed outward but her indifference curves satisfy the other three properties
of indifference curves. As Victoria moves from right to left along the horizontal axis, her marginal rate of substitution
a.
increases.
b.
decreases.
c.
remains constant.
d.
increases, then decreases.
56. When indifference curves are bowed inward, the marginal rate of substitution is
a.
the same at all points along an indifference curve.
b.
increasing as the consumer moves to the right along an indifference curve.
c.
decreasing as the consumer moves to the right along an indifference curve.
d.
constant.
57. Each of the following are characteristics of a typical indifference curve map except
a.
moving northeast to a new indifference curve will increase utility.
b.
points on the same indifference curve yield equal utility.
c.
the axes represent levels of utility for each of the goods.
d.
indifference curves cannot cross.
58. Which of the following is a property of typical indifference curves?
a.
Indifference curves usually intersect.
b.
Indifference curves have positive slopes.
c.
Indifference curves are downward sloping and always linear.
d.
Indifference curves are usually bowed in toward the origin.
59. All of the following are properties of typical indifference curves except
a.
higher indifference curves are preferred to lower ones.
b.
indifference curves are downward sloping.
c.
indifference curves do not cross.
d.
indifference curves are bowed outward.
60. Which of the following is a property of a typical indifference curve?
a.
upward sloping
b.
bowed away from the origin
c.
does not intersect another indifference curve
d.
a lower one is preferred to a higher one
61. Which of the following is a property of a typical indifference curve?
a.
upward sloping
b.
bowed away from the origin
c.
does not intersect another indifference curve
d.
a higher one is preferred to a lower one
62. Which of the following is not a property of a typical indifference curve?
a.
downward sloping
b.
bowed away from the origin
c.
does not intersect another indifference curve
d.
a higher one is preferred to a lower one
63. Higher indifference curves are preferred to lower ones as long as the
a.
marginal rate of substitution is diminishing.
b.
products in the bundle are “bads” and not “goods.”
c.
products in the bundle are “goods” and not “bads.”
d.
budget constraint does not shift.
64. Which of the following is not correct?
a.
Indifference curves are downward sloping.
b.
Indifference curves that are closer to the origin are preferred to indifference curves that are further from the
origin.
c.
Indifference curves are bowed in toward the origin.
d.
Indifference curves do not cross.
65. When indifference curves are bowed in toward the origin,
a.
consumers are less inclined to trade away goods they are lacking.
b.
consumers' willingness to trade away goods they have in abundance diminishes.
c.
an increase in income will shift the indifference curve away from the origin.
d.
a decrease in income will shift the indifference curve toward the origin.
66. When indifference curves are bowed in toward the origin,
a.
consumers are more inclined to trade away goods they have in abundance.
b.
an increase in income will shift the indifference curve away from the origin.
c.
a decrease in income will shift the indifference curve toward the origin.
d.
Both b) and c) are correct.
67. The bowed shape of the indifference curve reflects the consumer's
a.
unwillingness to give up a good that he already has in large quantity.
b.
unwillingness to purchase a good that he already has in large quantity.
c.
greater willingness to give up a good that he already has in large quantity.
d.
greater willingness to purchase a good that he already has in large quantity.
68. A set of indifference curves that are only slightly bowed inward represent goods that could best be described as
a.
perfect substitutes.
b.
perfect complements.
c.
very close substitutes.
d.
very close complements.
69. Janet prefers cashews to almonds. She prefers macadamia nuts to peanuts, but she is indifferent between almonds and
peanuts. Which of the following statements can we say for sure?
a.
Janet prefers cashews to macadamia nuts.
b.
Janet prefers peanuts to cashews.
c.
Janet prefers macadamia nuts to almonds.
d.
Janet prefers almonds to macadamia nuts.
70. Indifference curves that cross would suggest that
a.
the consumer does not prefer more to less.
b.
the consumer is likely to prefer a redistribution of income from rich to poor.
c.
different individuals have different preferences for the same goods.
d.
the marginal rate of substitution is the same for both indifference curves.
71. Indifference curves that cross violate the property of
a.
the marginal rate of substitution.
b.
transitivity.
c.
indifference curves bowing inward.
d.
They do not violate any properties of indifference curves.
Figure 21-14
72. Refer to Figure 21-14. Which of the graphs shown may represent indifference curves?
a.
graph a
b.
graph b
c.
graph c
d.
All of the above are correct.
73. Refer to Figure 21-14. Which of the graphs shown represent indifference curves for perfect complements?
a.
graph a
b.
graph b
c.
graph c
d.
All of the above are correct.
74. Refer to Figure 21-14. Which of the graphs shown represent indifference curves for perfect substitutes?
a.
graph a
b.
graph b
c.
graph c
d.
All of the above are correct.
75. Refer to Figure 21-14. Which of the graphs illustrates indifference curves for which the marginal rate of substitution
is constant?
a.
graph a
b.
graph b
c.
graph c
d.
All of the above are correct.
76. Refer to Figure 21-14. Which of the graphs illustrates indifference curves for which the marginal rate of substitution
is undefined?
a.
graph a
b.
graph b
c.
graph c
d.
All of the above are correct.
77. Refer to Figure 21-14. Which of the graphs illustrates indifference curves for which the marginal rate of substitution
varies?
a.
graph a
b.
graph b
c.
graph c
d.
All of the above are correct.
78. Refer to Figure 21-14. Which of the following statements is correct?
a.
The indifference curves represented in graph a are perfect complements.
b.
The indifference curves represented in graph b are perfect substitutes.
c.
The indifference curves represented in graph c are neither perfect substitutes not perfect complements.
d.
All of the above are correct.
79. Refer to Figure 21-14. Which of the following statements is correct?
a.
The indifference curves represented in graph a are perfect substitutes.
b.
The indifference curves represented in graph b are perfect complements.
c.
The indifference curves represented in graph c are neither perfect substitutes not perfect complements.
d.
All of the above are correct.
Figure 21-15 On the graph, Qx represents the quantity of good x and Qy represents the quantity of good y. The lines
drawn on the graph represent three of Barbara’s indifference curves.
80. Refer to Figure 21-15. For Barbara, goods x and y are
a.
imperfect complements.
b.
imperfect substitutes.
c.
perfect substitutes.
d.
perfect complements.
81. Refer to Figure 21-15. For Barbara, the marginal rate of substitution between goods y
and x
a.
increases as she moves downward and to the right along one of her indifference curves.
b.
decreases as she moves downward and to the right along one of her indifference curves.
c.
remains constant as she moves downward and to the right along one of her indifference curves.
d.
is undefined for any movement along any one of her indifference curves.
82. Refer to Figure 21-15. Barbara is happier at
a.
point B than at point A.
b.
point B than at point C.
c.
point C than at point D.
d.
All of the above are correct.
83. When two goods are perfect substitutes, the marginal rate of substitution
a.
is constant along the indifference curve.
b.
decreases as the scarcity of one good increases.
c.
increases as the scarcity of one good increases.
d.
changes to reflect the consumer’s changing preferences for the goods.
84. Assume that a consumer’s indifference curve is a downward-sloping straight line. As the consumer moves from left to
right along the horizontal axis, the consumer’s marginal rate of substitution
a.
increases.
b.
decreases.
c.
remains constant.
d.
increases, then decreases.
