Refer to the information provided in Figure 6.15 below to answer the questions that follow.a.b.C.d.Question #45: Moving along an indifference curve the:A. Consumers prefer some of the consumption points to others.B. Marginal rate of substitution for a good increase as more of the good is consumed.C. Marginal rate of substitution is constant.D. Consumers do not prefer one consumption point to another.Question #46: Suppose inflation comes in the form of an across-the board increase in all prices bysome percentage k. For a consumer with exogenous income operating in a 2-good world, this willcause the budget constraint toa.bought.b.Number of ice cream sandwichesC.bought.100rotate inwardrotate outwardd.Jo-el preferences and budget constraintCshift out in a parallel wayshift inward in a parallel wayNumber of ice cream conesQuestion #47: Suppose you are given a coupon for pizza. This coupon lowers the price for eachadditional pizza you buy by 5% for each addition pizza you buy. What happens to your budgetconstraint, with pizza on the horizontal axis and a composite good on the vertical?The vertical intercept remains the same but the slope becomes steeper as more pizzas are150The vertical intercept increases and the slope becomes steeper as more pizzas are bought.The vertical intercept remains the same but the slope becomes shallower as more pizzas areThe vertical intercept increases but the slope becomes shallower as more pizzas are bought. Question #48: A decrease in a wage tax causes the opportunity cost of leisure to increase.a.b.Question #49: One of the aims of positive economics is to rank policies under consideration from mostdesirable to least desirable.a.b.TrueFalsea.Question #50: If all consumers are price-takers facing the same prices, then their budget lines will allhave the same slope.TrueFalseb.TrueFalse

The indifference curve shows the different combinations of two goods that provide the same level of…

Question # 46: Suppose inflation comes in the form of an across-the board increase in all prices by some percentage k. For a consumer with exogenous income operating in a 2-good world, this wil cause the budget constraint to a. b. rotate inward rotate outward shift out in a parallel way

Question # 46: Suppose inflation comes in the form of an across-the board increase in all prices by some percentage k. For a consumer with exogenous income operating in a 2-good world, this wil cause the budget constraint to a. b. rotate inward rotate outward shift out in a parallel way

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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My children are making my shoulders hurt. Fortunately for me, they have given me a gift certificate to Molly's Muscle Message for Mother's Day that I can cash in whenever I like. Give this, we know that I am not in equilibrium. a. False Ob. True
Economics Gowri has $6 per day to purchase lunch. She spends all of her lunch money on pizza and iced-tea. The price of pizza is $2.00 per slice and iced-tea costs $1 per bottle. a. Draw Gowri's budget constraint and label it BC0. Put pizza on the horizontal axis and iced-tea on the vertical axis. Be sure to identify the intercept values. b. If the price of iced-tea rises to $1.20 per bottle, show what will happen to her budget constraint in your diagram. Be sure to indicate any new intercept values.
Refer to the information provided in Figure below to answer the question that follow. Number of DVDS per month Refer to Figure Molly's budget constraint is AC. Molly can purchase Select one: a. all of the points along BD. b. none of the points along AD. C. all of the points along AB. d. none of the points along AC. Number of CDs per month