Which that the adhering to statements is FALSE?A. Inputs right into a utility duty may include wool socks, DVD rentals, roller coaster rides, asparagus, and also Sunday church services.B. A utility function gives the relationship in between a consumer"s well-being and the amounts of products consumed.C. One person"s energy cannot be compared to an additional person"s utility.D. Energy is the difference between the consumer"s assets and also her liabilities.

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Randy likes baseball an ext than football, football more than basketball, and basketball an ext than baseball. Which assumption around consumer choices does this violate?A. Completeness and also rankabilityB. TransitivityC. Much more is betterD. The an ext a consumer has that a specific good, the less she is willing to provide up of something rather to obtain even much more of the good.
Which assumption(s) allow(s) us to draw indifference curves?A. Cardinal measurement and cardinal rankingB. The the an ext we have of a good, the less we space willing to provide up to obtain even much more of itC. Complimentary disposal and much more is betterD. Rankability and completeness
Monroe consumes crab cakes and tuna. Monroe"s utility increases with the consumption of crab cakes, yet his energy neither boosts nor decreases with the consumption of tuna. Assuming tuna is top top the x-axis and also crab cake is ~ above the y-axis, what carry out Monroe"s indifference curve look like?A. Horizontal linesB. Vertical linesC. Upward-sloping lines from the originD. Downward-sloping lines
Cher"s marginal price of substitution the necklaces (N) because that earrings (E) is 5 (MRSEN = 5). This information implies that:A. Cher will move to a higher indifference curve if she trades away five necklaces because that one an ext pair of earrings.B. Cher is willing to profession away five necklaces for one more pair that earrings, hold her energy constant.C. Cher need to own five times as many necklaces as pairs of earrings.D. The slope of the indifference curve is 5 and thus increase sloping.
B. Cher is willing to profession away 5 necklaces for one much more pair the earrings, holding her energy constant.
The utility duty U = Y/X violates the assumption(s) of:A. CompletenessB. More is better.C. Rankability.D. Rankability and completeness.
Suppose the the marginal energy of good Y = 2X^2 and the marginal energy of an excellent X = 4XY. What is the slope of the indifference curve once Y = 7 and also X = 2? assume that an excellent X is on the horizontal axis and good Y is ~ above the upright axis.A. -14B. -7C. 0.143D. -0.143
Brenda"s utility function for regular-flavored toothpaste (R) and also mint-flavored toothpaste (M) is provided by U = 2R + 4M. Which of the complying with statements is TRUE?A. MRSMR = 2M/R.B. Brenda"s indifference curves are vertical.C. Brenda"s indifference curves are vertical.D. Brenda is ready to provide up 2 tubes that regular-flavored toothpaste because that one tube of mint-flavored toothpaste.
D. Brenda is willing to offer up 2 tubes the regular-flavored toothpaste because that one tube of mint-flavored toothpaste.
Beth has \$200 of earnings to spend on e-books (E), priced at \$10 every book, and also Zumba (Z) classes, priced in ~ \$8 every class. I beg your pardon of the following intake bundles is infeasible?A. E = 2 and also Z = 22B. E = 20 and also Z = 0C. E = 10 and also Z = 13D. E = 8 and also Z = 15
Suppose that MUX = Y and also MUY = X. The prices of great X and great Y are \$5 and \$4, respectively. How plenty of units of good X go the consumer buy if she has \$410 the income?A. 41B. 15C. 33D. 25
The consumer"s budget plan constraint is \$6 = 0.50G + P, wherein G is packs of gum and P is bags that pretzels. The marginal utility of pretzels is MUP = G^0.5, and also the marginal utility of gum is MUG = 0.5G-0.5P. The consumer"s utility role is U = G^0.5P. The utility-maximizing bundle is composed of _____ packs of gum and also _____ bags that pretzels.A. 6; 3B. 8; 2C. 4; 4D. 2; 5
Julie spends every one of her earnings on gasoline and pizza. Gasoline expenses \$4 every gallon and also pizza costs \$2 every slice. When Julie"s revenue is \$50 every week, she to buy 5 gallons that gasoline and 15 slices the pizza. As soon as her income rises to \$80 per week, she buys 15 gallons of gasoline and also 10 slices the pizza. I beg your pardon of the adhering to statements is true?A. Pizza is a high-end good.B. Both gasoline and pizza room inferior goods.C. Petrol is a deluxe good.D. Both gasoline and also pizza are normal goods.
The income result of a price adjust predicts that a _____ in a good"s price will _____ customer purchasing power, causing a(n) _____ in usage of _____ goods.A. Fall; decrease; decrease; normalB. Rise; increase; decrease; inferiorC. Rise; increase; increase; inferiorD. Fall; increase; increase; normal
A consumer"s bundle contains the inferior good X and the normal good Y. According to the revenue effect, a(n) _____ in the price of great X or a(n) _____ in the price of good Y will cause the consumer to buy an ext of good X.A. Decrease; increaseB. Decrease; decreaseC. Increase; decreaseD. Increase; increase
For Sara, ramen noodles room a regular good, yet Sean considers ramen noodles to it is in inferior. If Sara and Sean have the very same amount of income:A. Sean"s substitution effect will be stronger than Sara"s substitution effect.B. Sean"s need for ramen noodles will certainly be less price elastic 보다 Sara"s.C. Sean"s income effect will be more powerful than Sara"s income effect.D. Sean"s demand for ramen noodles will certainly be an ext price elastic 보다 Sara"s.
Suppose the price of an excellent X, a Giffen good, increases. I m sorry of the following statements space TRUE?I. The substitution impact of the price increase reasons consumers to buy much less of great X.II. The substitution effect of the price increases causes consumers to buy more of an excellent X.III. The income effect of the price increase causes consumers to buy an ext of great X.IV. The income result of the price increase reasons consumers come buy less of an excellent X.A. I and also IIIB. II and also IVC. II and IIID. I and also IV
Suppose that great X and great Y are substitutes and an excellent X and an excellent Z room complements. Once the price the a an excellent Y _____ or the price of an excellent Z _____, the need for great X shifts outward.A. Decreases; increasesB. Decreases; decreasesC. Increases; decreasesD. Increases; increases
There room 10 consumer in the market, each with the following need curve: Q = 100 - 0.5P. In a graph the the market demand curve, its slope (ΔP/ΔQ) would certainly equal:A. -0.20B. -2.25C. -1.50D. -0.50
Suppose the market for a good is composed of 1,000 the same consumers. The market"s demand curve is offered by QM = 150,000 - 25P. What is the equation for an individual consumer"s need curve?A. Q = 6,000,000 - 40PB. Q = 150 - 0.025PC. Q = 150,000,000 - 25,000PD. Q = 6 - 4P
There are 100 consumers in the market for great X, each v a need curve given by Q = 2/P. What is the market need curve for good X?A. QM = 200 - 200PB. QM = 1/50PC. QM = 150,000,000 -25,000PD. QM = 200/P
The sector for macaroni and cheese has actually only two consumers, David and also Wallace. Market demand for macaroni and also cheese will tend to be an ext elastic if:A. David and also Wallace consider macaroni and cheese to be an economic "bad."B. David and Wallace take into consideration macaroni and also cheese to it is in an inferior an excellent rather than a normal good.C. David and Wallace think about macaroni and also cheese to be a necessity great rather than a luxury good.D. David and Wallace consider macaroni and also cheese to it is in a normal great rather 보다 an worse good.
A straightforward assumption that the short run is the a firm:A. Cannot change its labor force or the lot of capital it uses.B. Have the right to reduce the number of workers the uses, yet it cannot change how much resources it uses.C. Can employ an ext workers and also add an ext capital come the production process.D. Have the right to freely readjust the quantity of labor and also capital the it employs.
Which that the following is a Cobb-Douglas production function?A. Q = K^0.50 * L^0.75B. Q = f(K, L)C. Q = 2K/3LD. Q = 5K + 2.5L
Suppose a firm"s short-run production duty is given by Q = 16L^0.8. What is the marginal product of the fourth worker?A. 36B. 49C. 10D. 1.85
Which instance will likely provide rise come diminishing marginal product the labor?A. Hell"s Kitchen, which has sufficient counter an are for three cooks per shift, decides to hire a fourth chef per shift.B. Nevaeh"s Kitchen undertakes a massive expansion, doubling both the size of that is kitchen and number of cooks.C. A landscaping certain replaces every one of its self-propelled lawnmowers with push mowers.D. Plasma tv manufacturers space going the end of business because of boosted competition indigenous LCD televisions.
A. Hell"s Kitchen, i beg your pardon has enough counter space for three cooks every shift, decides to rental a fourth cook per shift.
In the brief run, the marginal product the labor:A. Constantly increases because laborers become an ext efficient v experience.B. Will ultimately fall.C. Proceeds to increase so lengthy as the for sure adds job slowly.D. Is constantly diminishing.
In the lengthy run, due to the fact that firms can readjust both capital and also labor:A. Manufacturing is more expensive since firms must invest in both labor and capital.B. That company fire workers, instead of the labor performance with capital.C. The affect of diminishing marginal returns is lessened.D. Firms will certainly grow.
Which the the following statements is (are) TRUE?I. If labor and capital space perfect substitutes in production, the isoquant is a downward-sloping line. II. If a firm needs to use inputs in addressed proportion such the the funding to labor proportion is constantly 2, the firm"s isoquants room L-shaped.III. If the production duty is offered by Q = min(14, 7), the firm have the right to produce, in ~ minimum, 21 systems of output.A. IIIB. I and also IIC. I, II, and IIID. I
Why space the slopes the isocost lines constant?A. Because the marginal price of technical substitution of job for resources is constantB. Due to the fact that firms deserve to hire as lot of one input as they desire without transforming wages or rental ratesC. Because firms have to use capital and also labor input in solved proportionsD. Since firms must use less labor if employing an ext capital
Suppose the wage rate is \$25 per hour and the rent on resources is \$50 every hour. The equation because that the isocost heat is provided by:A. C = 75LK.B. C = 25L + 50K.C. C = 75(L + K).D. C = 2K/L.
Which of the adhering to statements ideal exemplifies the firm"s constrained minimization problem?A. The firm desire to develop as lot output as feasible by selecting values of L and also K that minimization RK + WL.B. The firm desire to produce a given quantity of output by selecting values the W and R that minimization RK + WL.C. The firm desire to create a provided quantity of calculation by choosing values that L and K that minimization RK + WL.D. The firm desires to produce as much output as possible subject come the constraint the C = RK + WL.
C. The firm desire to create a given quantity of calculation by picking values of L and K that minimize RK + WL.
Suppose a for sure is creating 2,475 systems of calculation by hiring 50 workers (W = \$20 every hour) and 25 devices of capital (R = \$10 every hour). The marginal product that labor and also marginal product of funding are 40 and 25, respectively. Is the firm minimizing the expense of creating 2,475 devices of output?A. Yes, the ratio of the variety of workers come the wage amounts to the proportion of the number of units of funding to the rental rate.B. No, the firm have to use an ext of both labor and also capital.C. No, the firm should use more labor and less capital.D. No, the firm have to use much more capital and less labor.

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Suppose the a firm encounters the production duty y = K*L and is right now minimizing expenses in the long run through marginal product the labor and marginal product of resources given by K and also L, respectively. If the price of capital falls by 50%, the capital-to-labor ratio will:A. Double.B. Rise fivefold.C. To decrease by 50%.D. Increase by 50%.
Between 1994 and 2008, the re-superstructure of the workforce employed in production _____ and manufacturing calculation _____.A. Increased; increasedB. Decreased; decreasedC. Decreased; increasedD. Increased; decreased