Key to Success in Econ
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1
Suppose that a consumer’s income triples. However, at the same time, both the price of and the price of also triple. This consumer has experienced
Response: no change in purchasing power. * Edit
Question 2
Suppose the price of is PhP20 and the price of is PhP10 and that good is plotted on the horizontal axis. If the price of doubles and the price of triples, leaving the consumer’s income unchanged, the budget line
Response: will shift out from the origin. * Edit
Question 3
7Evaluate the truthfulness of the following statements.
I. All points to the interior of the budget constraint are affordable.
II. All points that lie on the budget constraint cost the same amount of money.
Response: Both I and II are false. * Edit
Question 4
Shiela is maximizing her utility. Her MUx/Px=10 and MUy=40. Then the price of Y must be
Response: 40 * Edit
Question 5
Let I be the income of the consumer, Px be the price of good x and Py be the price of good y. If good is measured along the horizontal axis and good is measured along the vertical axis, then the “ -intercept” measures the maximum amount of good that the consumer can afford, which can be expressed as
Response: Px/Py * Edit
Question 6
Suppose a consumer has an income equal to I which he/she spends on either food or clothing. The price of food is given by Pf and the price of clothing is given by Pc. If the consumer spends all of his/her income on clothing, the expression for the number of units of clothing he/she buys is
Response: I x Pc * Edit
Question 7
Suppose all prices double and income triples. The budget line
Response: will shift in toward the origin. * Edit
Question 8
Suppose that the price of good A is $4, the price of good B is $2 and the consumer's income is $60. Which of the following baskets is not on the consumer's budget line?
Response: A = 20, B = 5 * Edit
Question 9
The budget line
Response: represents the set of all
1
Suppose that a consumer’s income triples. However, at the same time, both the price of and the price of also triple. This consumer has experienced
Response: no change in purchasing power. * Edit
Question 2
Suppose the price of is PhP20 and the price of is PhP10 and that good is plotted on the horizontal axis. If the price of doubles and the price of triples, leaving the consumer’s income unchanged, the budget line
Response: will shift out from the origin. * Edit
Question 3
7Evaluate the truthfulness of the following statements.
I. All points to the interior of the budget constraint are affordable.
II. All points that lie on the budget constraint cost the same amount of money.
Response: Both I and II are false. * Edit
Question 4
Shiela is maximizing her utility. Her MUx/Px=10 and MUy=40. Then the price of Y must be
Response: 40 * Edit
Question 5
Let I be the income of the consumer, Px be the price of good x and Py be the price of good y. If good is measured along the horizontal axis and good is measured along the vertical axis, then the “ -intercept” measures the maximum amount of good that the consumer can afford, which can be expressed as
Response: Px/Py * Edit
Question 6
Suppose a consumer has an income equal to I which he/she spends on either food or clothing. The price of food is given by Pf and the price of clothing is given by Pc. If the consumer spends all of his/her income on clothing, the expression for the number of units of clothing he/she buys is
Response: I x Pc * Edit
Question 7
Suppose all prices double and income triples. The budget line
Response: will shift in toward the origin. * Edit
Question 8
Suppose that the price of good A is $4, the price of good B is $2 and the consumer's income is $60. Which of the following baskets is not on the consumer's budget line?
Response: A = 20, B = 5 * Edit
Question 9
The budget line
Response: represents the set of all