5) Use the following statements to answer this question. Please provide correct answer with explanation I. The numerical labels attached to indifference curves are meaningful only in an ordinal way. II. The numerical labels attached to isoquants are meaningful only in an ordinal way. A) both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) both I and II are false.

5) Use the following statements to answer this question. Please provide correct answer with explanation I. The numerical labels attached to indifference curves are meaningful only in an ordinal way. II. The numerical labels attached to isoquants are meaningful only in an ordinal way. A) both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) both I and II are false.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 4 Which of the following is NOT true about indifference curves? O They are downward sloping O They do not cross O The one is closer to the origin is preferable to indifference curves further from the origin O They are bowed in toward the origin
When drawing an indifference curve, which of the following statements is true? A. Indifference curves slope downward from left to right. B. Indifference curves are always straight lines. C. Indifference curves cannot intersect each other. D. Indifference curves represent a constant level of utility.
Consider three individuals with utility indicators UA = MA, UB = nMB, and UC = MC d. Explain the answers to parts a through c in terms of the comparability of utility.
Question is in attached image, Thank you!
4) A convex indifference curve diagram has movies on the vertical axis and sodas on the horizontal. As the consumption of sodas increases and movies decreases (moving southeast along an indifference curve) the marginal rate of substitution of sodas A) rises. B) falls. C) does not change. D) probably changes, but more information is needed to determine if it rises or falls.
Question 4: Consider a general utility function U(x₁, x₂). Let's now solve for the optimal bundle generally using the Lagrangian Method. 1. Write down the objective function and constraint in math. 2. Set up the Lagrangian Equation. 3. Fnd the first derivatives. 4. Find the first order conditions. What's the interpretation for >? 5. Rearrange them to get the tangency condition.
please explain
28) When measuring the substitution effect, one uses the change along A) the new indifference curve. C) the old indifference curve. B) the budget constraint. D) either the old or the new indifference curve.
In your own words, explain what indifference curves are. Give 4 properties of indifference curves.
Please show work. Thank you
An island economy produces only two goods, coconuts and pineapples. There are four people (A, B, C, and D) living on the island with the following preferences. Construct a set of indifference curve for each individual with pineapples on the vertical axis and coconuts on the horizontal axis. a. A likes both but has a strong preference for pineapples. b. B also likes both but has a strong preference for coconuts. c. C likes coconuts but doesn’t care for pineapples. d. D will only consume pineapples and coconuts in the fixed proportion of one pineapple to one coconut.