Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 1PA
Related questions
Question
6
![6. Who proposed Revealed preference theory?
A. Wilfred Pareto
B. J. Hicks
C. Paul A. Samuelson
D. All of the above
7. Which concept explains that, when the price of a good falls it appears cheaper to the cosumer given
his income as fixed?
A. Substitution effect
B. Income effect
C. Expense effect
D. Cheaper effect
Evaluate whether the following statement is true or false: (Each correct answer = 0.5 Mark)
8. A demand curve always has a negative slope except in exceptional cases.
True
False
9. A production possibility frontier shows all the possible combination of two goods or two options
available at one point in time.
True
False
10. While total utility decreases the marginal utility increases from using extra unit of a good.
True
0 False
11. Bread and tea are substitute products because a consumer can use bread instead of tea.
True
12. The shape of the production
True
False
possibility curve is convex.
0 False
13. An indifference curve shows how the consumers can purchase any combination of two goods with
less satisfaction also.
True
False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96864538-6802-4ae8-9f33-477c524c1873%2F5f250347-726a-4bc2-8008-223b4c4e4603%2Fjnziwjc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:6. Who proposed Revealed preference theory?
A. Wilfred Pareto
B. J. Hicks
C. Paul A. Samuelson
D. All of the above
7. Which concept explains that, when the price of a good falls it appears cheaper to the cosumer given
his income as fixed?
A. Substitution effect
B. Income effect
C. Expense effect
D. Cheaper effect
Evaluate whether the following statement is true or false: (Each correct answer = 0.5 Mark)
8. A demand curve always has a negative slope except in exceptional cases.
True
False
9. A production possibility frontier shows all the possible combination of two goods or two options
available at one point in time.
True
False
10. While total utility decreases the marginal utility increases from using extra unit of a good.
True
0 False
11. Bread and tea are substitute products because a consumer can use bread instead of tea.
True
12. The shape of the production
True
False
possibility curve is convex.
0 False
13. An indifference curve shows how the consumers can purchase any combination of two goods with
less satisfaction also.
True
False
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