test bank for microeconomic theory basic principles and extensions
Connected book
Book Title:
Author(s):
Edition:
ISBN:
Edition:
More summaries for
Question Bank in line with Microeconomic Theory Basic Principles and Extensions, Nicholson,12e
Sharpen Your Knowledge with the 2023-2024 [Microeconomic Theory Basic Principles and Extensions, Nicholson,12e] Test Bank
Microeconomic Theory Basic Principles and Extensions, Nicholson - Exam Preparation Test Bank (Downloadable Doc)
All for this textbook (8)
Written for
Answer Key
All documents for this subject (73)
Seller
Follow
solutions
Reviews received
Content preview
TEST BANK FOR
Microeconomic Theory Basic Principles and Extensions,
12th Edition
Chapter_03_Preferences_and_Utility
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.
Copyright Cengage Learning. Powered by Cognero. Page 1
, 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
Questions 4 and 5 refer to an individual whose utility function is given by:
.
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
5. For this utility function, the MRS:
a. depends on the values of x and y.
b. is always 0.
c. is always 2.
d. is always 4.
ANSWER: c
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 2
,6. Which of these utility functions represent the same preferences as ?
a.
b.
c.
d. All of the above represent the same preferences.
ANSWER: d
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
8. If utility is given by , this person's indifference curves are:
a. parabolas.
b. hyperbolas.
c. concentric circles.
d. straight lines.
ANSWER: d
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 3
, 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
10. If an individual's utility function is quasi-concave, his or her MRS will:
a. diminish as x is substituted for y.
b. increase as x is substituted for y.
c. be undefined except in special cases.
d. always depend only on the ratio of x to y.
ANSWER: a
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
Copyright Cengage Learning. Powered by Cognero. Page 4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller solutions. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.49. You're not tied to anything after your purchase.
