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ECON 312 Exam 1 with complete solutions 2024_2025.
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ECON 312 Exam 1 with complete solutions 2024_2025.
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ECON 312 Exam 1 with complete solutions2024/2025
Bella's budget line for x and y depends on all of the following except:
A: the amount of money she has to spend on
B:the price of x
C: her preferences between x and y
D: the price of y - ANSWER-C: her preferences between x and y
If preferences are transitive, more is always preferred to less. - ANSWER-False
A person with reflexive preferences is someone who does not shop carefully. -
ANSWER-False
If someone has the utility function U = 1,000 + 2 min {x, y}, then x and y are
perfect complements for that person. - ANSWER-True
A consumer with convex preferences who is indifferent between the bundles (5,
2) and (11, 6) will like the bundle (8, 4) at least as well as the first two bundles. -
ANSWER-False
If there are two goods, if a consumer prefers more of each good to less, and if
she has a diminishing marginal rate of substitution, then her preferences are
convex. - ANSWER-True
If preferences are convex, then for any commodity bundle x, the set of commodity
bundles that are worse than x is a convex set. - ANSWER-True
Bill Katz prefers more of good 1 to less and he prefers less of good 2 to more. Bill
has convex preferences. If we draw his indifference curves with good 1 on the
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