Any point above a given indifference curve affordable and is to any point on the indifference curve O A. might or might not be; inferior O B. is; preferred OC. is not preferred O D. might or might not be; preferred O E. is not, inferior

Any point above a given indifference curve affordable and is to any point on the indifference curve O A. might or might not be; inferior O B. is; preferred OC. is not preferred O D. might or might not be; preferred O E. is not, inferior

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

Any point above a given indifference curve
affordable and is
to any point on the indifference curve.
O A. might or might not be; inferior
O B. is; preferred
OC. is not; preferred
O D. might or might not be; preferred
O E. is not; inferior

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If indifference curves cross, then: Oa. consumers minimize their satisfaction. the assumption of transitivity is violated. b. Oc all of the above Od. the assumption of a diminishing marginal rate of substitution is violated.
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36. What is substitution effect an income increase leading to the outward budget line and IC price of a good change leading to the relative prices change and choice of individual to consume a cheaper good more both prices of goods change in the same direction and no change in consumption ratio อื่นๆ: 37. What is 'not' correct about income effect? income effects results from changes in lower good prices Income effects results from the move in the budget constraint outward income effects results from the move in the budget constraint inward income effects can be seen along the same IC O อื่นๆ:
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What is the difference between an isoquant and an indifference curve? A. The numbers attached to isoquants are ordinal and the numbers attached to indifference curves are cardinal. B. Isoquants show which bundles are attainable and indifference curves show which bundles are preferable. C. Multiple isoquants can be ranked and multiple indifference curves are equivalent. D. Isoquants map inputs to output and indifference curves map goods to utility. O E. Isoquants measure productivity and indifference curves measure income.
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4 Assume you are always willing to trade two Cardinal tickets for one beer, or one beer fortwo Cardinals tickets, create an indifference map showing this relationship for threelevels of utility. Calculate the MRS for each indifference curve.
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Leah consumes at a point on her budget line where her marginal rate of substitution is less than the magnitude of the slope of her budget line. As Leah moves towards her best affordable point, she will move to Select one: A. a higher indifference curve. B. a higher budget line. OC. a lower indifference curve. OD. a tangent point on the same indifference curve. O E. a lower budget line. Clear my choice