Microeconomic Theory Basic Principles and Extensions 12th Edition Nicholson Test Bank
Microeconomic Theory Basic Principles and Extensions 12th Edition Nicholson Test Bank
Microeconomic Theory Basic Principles and Extensions 12th Edition Nicholson Test Bank
1. Indifference curves:
a. may sometimes intersect.
b. are contour lines only of a linear utility function.
c. are convex if the utility function is quasi-concave.
d. shift when prices change.
ANSWER: c
POINTS: 1
2. For an individual who consumes only two goods, x and y, the opportunity cost of consuming one more unit of x in
terms of how much y must be given up is reflected by:
a. the individual's marginal rate of substitution.
b. the market prices of x and y.
c. the slope of the individual's indifference curve.
d. none of the above.
ANSWER: b
POINTS: 1
3. If bundles of goods A and B lie on the same indifference curve, one can assume the individual:
a. prefers bundle A to bundle B.
b. prefers bundle B to bundle A.
c. enjoys bundle A and B equally.
d. bundle A contains the same goods as bundle B.
ANSWER: c
POINTS: 1
.
4. With this utility function, the bundle (3,2) provides the same utility as the bundle:
a. (2, 3).
b. (2, 4).
c. (2, 5).
d. (3, 3).
ANSWER: b
POINTS: 1
7. If utility is given by , then the person's MRS at the point x = 5, y = 2 is given by:
a. 0.4.
b. 1.0.
c. 2.5.
d. 5.0.
ANSWER: a
POINTS: 1
9. Which of the following utility functions best represents the idea that two goods, x and y, are perfect complements?
a.
b.
c.
d.
ANSWER: d
POINTS: 1
11. If utility is given by then the bundle (3, 2) provides the same utility as the bundle:
a. (1, 3).
b. (2, 3).
c. (4, 1).
d. (4, 2).
ANSWER: c
POINTS: 1
12. Which of the following utility functions would not be consistent with the notion that x and y are both "goods" with
positive marginal utilities?
a.
b.
c.
d.
ANSWER: d
POINTS: 1