y

Question 1
5 out of 5 points

Suppose a production possibilities frontier can be expressed as 9X2 + Y2= 81 what is the opportunity cost of going from 1 unit of X to 2 units of X (in terms of units of Y)?
Answer Selected Answer:

Correct Answer:

Question 2
5 out of 5 points

Let QD = -5P + 54 and QS = P - 6. Equilibrium can be found at

Answer Selected Answer:

Q = 4; P = 10
Correct Answer:

Q = 4; P = 10
y

Question 3
0 out of 5 points

The underlying reason early economists believed a (short-run) supply curve would be upward sloping is because of
Answer Selected Answer:

Increasing average cost

Correct Answer:

Increasing marginal costs

y

Question 4
5 out of 5 points

Suppose right (R) and left (L) shoes are only useful if produced in equal proportion and societal happiness is expressed as min(R,L). The contour lines would be
Answer Selected Answer:

L-shaped
Correct Answer:

L-shaped
y

Question 5
5 out of 5 points

The solution to the simultaneous equations 5X Y = 10 and 10X + Y = 35 is

Answer Selected Answer:

X = 3, Y = 5.
Correct Answer:

X = 3, Y = 5.
y

Question 6
5 out of 5 points

If the slope of a linear function changes with no change in the Y-intercept

Answer Selected Answer:

The graph rotates about its Y-intercept.

Correct Answer:

The graph rotates about its Y-intercept.

y

Question 7
5 out of 5 points

If Y = X2 + Z2, the contour lines

Answer Selected Answer:

Are concentric circles.

Correct Answer:

Are concentric circles.

y

Question 8
5 out of 5 points

Normative economic analysis

Answer Selected Answer:

Involves judgments on how resources should be used in an economy.

Correct Answer:

Involves judgments on how resources should be used in an economy.

y

Question 9
5 out of 5 points

The Ricardian notion that of diminishing returns implies that

Answer Selected Answer:

As more input is used the increase in output will decrease.

Correct Answer:

As more input is used the increase in output will decrease.

Question 10
0 out of 5 points

Suppose T = .02I . If taxes are progressive which of the following is true?

Answer Selected Answer:

0<
Correct Answer:

<1

>1
y

Question 11
0 out of 5 points

If people like their goods in fixed proportions, the two goods are
Answer Selected Answer:

Perfect substitutes
Correct Answer:

Perfect complements
y

Question 12
0 out of 5 points

If an individual has a constant MRS of shoes for sneakers of 3/4 (that is, he or she is always willing to give up 3 pairs of sneakers to get 4 pairs of shoes) then, if sneakers and shoes are equally costly, he or she will
Answer Selected Answer:

Buy only shoes.

Correct Answer:

Buy only sneakers.

y

Question 13
5 out of 5 points

The slope of the budget constraint line is

Answer Selected Answer:

The negative of the ratio of the prices (Px/Py).

Correct Answer:

The negative of the ratio of the prices (Px/Py).

y

Question 14
0 out of 5 points

If the price of X falls, the budget constraint

Answer Selected Answer:

Rotates outward about the X-intercept.

Correct Answer:

Rotates outward about the Y-intercept.

y

Question 15
0 out of 5 points

Suppose a little girl likes peanut butter and jelly sandwiches with exactly 2T of jelly and 1T of peanut butter. Suppose further that her mom agrees to make sandwiches to those exact specifications and the price of peanut butter is $.25/T and the price of jelly is $.10/T. If she has $1.8 to spend on peanut butter and jelly ingredients (ignore the bread) in a week, how many sandwiches will she make?
Answer Selected Answer:

8
Correct Answer:

4
y

Question 16
5 out of 5 points

Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25. Suppose a students beverage budget is $20 per week. What is the algebraic expression of the budget?
Answer Selected Answer:

Correct Answer:

Question 17
5 out of 5 points

If an individuals indifference curve map does not obey the assumption of a diminishing MRS, then
Answer Selected Answer:

Tangencies of indifference curves to the budget constraint may not be points of utility maximization. Tangencies of indifference curves to the budget constraint may not be points of utility maximization.

Correct Answer:

Question 18
5 out of 5 points

If bundles of goods A and B lie on the same indifference curve, one can assume the individual
Answer Selected Answer:

Enjoys bundle A and B equally.

Correct Answer:

Enjoys bundle A and B equally.

y

Question 19
5 out of 5 points

Indifference curves
Answer Selected Answer:

All of the above.

Correct Answer:

All of the above.

y

Question 20
0 out of 5 points

Suppose a teenager has $20 and likes both rap music (R) and country music (C) with a set of preferences so that U = C1/2R1/2. Suppose that the iTunes price of a rap music song is and the price of a country music song is affordable?
Answer Selected Answer:

. Which level of utility is

16
Correct Answer:

Friday, December 23, 2011 10:56:53 AM EST