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Urban traffic moves as effectively as it does because O police are able to enforce the city's traffic plan @ drivers are usually concentrating intently on their own narrow goals O alldrivers have the same attitudes regarding courtesy, safety, and speed O drivers take other drivers' specific goals and interests into account Question 2 1pts The value of an apple is O the smallest amount of another good a person is willing to give up in order to have an apple O the smallest price a person must pay in order to have an apple @ the largest price a person must pay in order to have an apple O the largest amount of another good a person s willing to give up in order to have an apple Question 3 1pts Suppose Aditya is indifferent between bundles A, B, and C: Bundle Lattes Kiwis A 6 4 B 4 5 C 3 6 The marginal value of the 4" latte is O 4kiwis O 2kiwis O 3kiwis @ 1kiwi

"Allindividuals are always motivated by greed." This principle is referred to as @ Maximization O Substitution O Motivation O Scarcity Question 5 1pts The value of 4 hours of sleep can be measured as O the maximum hours of watching TV one is willing to give up to have 4 hours of sleep rather than 5 hours of sleep O the number of dollars one must pay to sleep for 4 hrs in a hotel @ the maximum hours of watching TV one is willing to give up to have 4 hours of sleep rather than 0 hours of sleep

Question 8 1pts At a price of $4.95, a pulp fiction novel is expected to sell 9,000 copies. If the novel is offered for sale at a price of $3.95, then the publisher can expect to sell O Itisimpossible to predict the effect of a lower price on sales. O less than 9,000 copies. @ more than 9,000 copies. O 9.000 copies. Question 9 1pts Behaviour depends on relative prices and real income, not on nominal prices and nominal income. O True ® False

Question 10 1pts Thereis relationship between total value and marginal value ® apositive O aninverse O aproportional O alinear Question 11 1pts Long-run demands are generally less elastic than short-run demands. @® True O False

. Question 14 1pts Demand is given by P = 24 - 4Q, where P is the price of the good and Q is the quantity demanded. At Q = 5, the own price (point) elasticity is O 0.25 O 3.2 O 5 @ 0.2 . > Question 15 1pts The units of measurement for the coefficient of elasticity € are O thereis no unit of measurement (it's just a number) (O quantity divided by price 2.D 6. F 2.7 10.B 11.F 12.B

L Question 1 1pts In a supermarket, there are two lines to the cashiers. If this is an equilibrium, which one should | join to get out faster? @ The line that moves faster. O The longer line. O ltdoes not matter which one to join. O The shorter line. L1 Question 2 1pts The firms maximize O revenues @® profit O utility O sales Anindividual is indifferent between two bundles of the goods. This means O the bundles are identical O she does not mind if someone else would choose which bundle she receives O the bundles have same weight in pounds @ the bundles maximize her utility

[ Question7 1pts Behaviour depends on relative prices and nominal income, not on relative prices and real income. O True ® False Real income measures ® how much income a person really makes (legally or illegally) O the amount of the goods one could buy with their nominal income at a given nominal price © nominal income on the margin O the number of dollars a person has in their bank account plus the number of dollars they keepin cash [0 Question 9 1pts A consumer is in equilibrium when the difference between the good's marginal value and its relative price is the largest. O True @ False

Here's ademand curve: Q 5 10 15 20 If the price of this good is $1 per unit, what will be the quantity demanded? o5 0 20 0 10 ®15 D ‘ Question 11 1pts Demand is given by P = 24 - 4Q, where P is the price of the good and Q is the quantity demanded. At Q= 1, the own price (point) elasticity is os 052 O 80 ® 02

. Question 15 1pts When Blenz Coffee has changed their price for their regular coffee from $1.80 per cup to $2.05 per cup, the number of customers buying their regular coffee has dropped from 40 to 37, on an average day. The demand for coffee at P = $1.80is O positively sloped O unitary elastic O inelastic @ elastic 1.C 3.B 4.B 8.B 11.A 15.C Question 1 0/1pts Principle of maximization means that people are smart and know how to get the most w ”qurec_tj\rzwgr , people want more, not that they can get more people never make mistakes, they always get what they want | more is always preferred to less

Correct answer Question 2 0/1pts A good model is simple, formal, testable true, simple, provable ‘ formal, detailed, provable true, formal, de ULV O [ "All individuals are always motivated by greed." This principle is referred to as Substitution Maximization Motivation Scarcity

Question 1 s The good is scarce if the goc ailable in a small quantity it is available in smaller quantity than people would want at a zero price tis bad, so the individuals want none of it " 1/1pts Question 2 v “Marginal” means "valuable m “for one additional unit” "barely ge enough more than zero

Question 3 2iivt "All individuals are always motivated by greed." This principle is referred to as Substitution Motivation 1 P . iR Maximization Scarcity . 1/1pt Question 4 = The firms maximize utility revenues sales

Here's ademand curve: Q If the price of this good is $1 per unit, what will be the quantity demanded? o S Question 3 1/1pts A consumer is in equilibrium when the difference between the good's marginal value and its relative price is the largest. True Fale

Question 4 OULEE Diminishing marginal value means that, ceteris paribus, the more of a good you have, the more you are willing to give upin order to obtain an additional unit of the good the more valuable a good is, the more marginal it is od is, the less valuable it is the more marg Correct answer the more of a good you have, the less you are willing to give up in order to obtain an additional unit of the good