Crowdly

Add to Chrome

Universities
moodle.uleth.ca
ECON-1010-A-Introduction to Microeconomics

ECON-1010-A-Introduction to Microeconomics

Looking for ECON-1010-A-Introduction to Microeconomics test answers and solutions? Browse our comprehensive collection of verified answers for ECON-1010-A-Introduction to Microeconomics at moodle.uleth.ca.

Get instant access to accurate answers and detailed explanations for your course questions. Our community-driven platform helps students succeed!

Three graphs plot good y versus good x. In graph 1, the horizontal axis is labeled good x, and the vertical axis is labeled good y. The horizontal axis ranges from 0 to 10 in increments of 2 units, and the vertical axis ranges from 0 to 10 in increments of 2 units. A graph displays two lines parallel to the vertical axis and two lines parallel to the horizontal axis. The first vertical line through (2, 8.8) and (2, 2). The second vertical line through (4, 8.7) and (4, 4). The first horizontal line through (2, 2) and (9, 2). The second horizontal line through (4, 4) and (9, 4). All values are estimated.In graph 2, the horizontal axis is labeled good x, and the vertical axis is labeled good y. The horizontal axis ranges from 0 to 10 in increments of 2 units, and the vertical axis ranges from 0 to 10 in increments of 2 units. A graph displays two concave up decreasing curves. The first curve through (1.7, 9.9) and (9.9, 1.8). The second curve through (3, 9.9) and (9.9, 2.8). All values are estimated. In graph 3, the horizontal axis is labeled good x, and the vertical axis is labeled good y. The horizontal axis ranges from 0 to 10 in increments of 2 units, and the vertical axis ranges from 0 to 10 in increments of 2 units. A graph displays two concave up decreasing curves. The first curve through (1.8, 9.8) and (7.3, 1.7). The second curve through (4.2, 10) and (10, 2). All values are estimated.

Refer to Figure 9.2.5, which shows indifference curves for various goods. What types of goods do the graphs describe?

Graph ________ best describes the pair of goods baseballs and baseball bats. Graph ________ best describes the pair of goods desktop computers and laptop computers.

View this question

Sam is spending his income on two goods and buys the quantities of the goods so that he achieves his best affordable combination of goods. If the price of one good falls, what is the substitution effect of the price fall?

The income in the quantities of the two goods bought.

The price effect on Sam's income as Sam moves to a higher indifference curve.

The price effect on Sam's best affordable combination of goods.

The change in the quantity bought of the lower priced good as Sam moves along the same indifference curve.

The change in the quantity bought of the lower priced good as Sam moves to a higher indifference curve.

View this question

A graph plots books versus C Ds. The horizontal axis is labeled C Ds, and the vertical axis is labeled books. The horizontal axis ranges from 0 to 10 in increments of 2 units, and the vertical axis ranges from 0 to 5 in increments of 1 unit. A graph is a line labeled B sub 1 falling through (0, 5), (6, 2), and (10, 0). Another line labeled B sub 0 falling through (0, 5), (2, 3), and (5, 0). A concave up decreasing curve labeled I sub 1 intersects B sub 1 at (6, 2). A concave up decreasing curve labeled I sub 0 intersects B sub 0 at (2, 3). Two horizontal and two vertical dashed lines through (0, 3) to (2, 3) at B sub 0 and (0, 2) to (6, 2) at B sub 1.

Refer to Figure 9.2.2, which shows Otto's preferences when he spends all his income on books and CDs. If Otto chooses to buy 2 books and 6 CDs, what is his marginal rate of substitution between the two goods?

1/2 book per CD

1/3 books per CD

View this question

If the price of an inferior good falls, which of the following statements about the price effect is correct?

The substitution effect works in the same direction as the income effect.

The substitution effect is negative, and the income effect is positive.

The substitution effect is positive and no income effect occurs.

The income effect is negative and no substitution effect occurs.

The income effect works in the opposite direction to the substitution effect.

View this question

In a usual week, Karl spends $20 to buy bagels and coffee. This week Karl has $25 to spend. Which of the following statements is correct?

Karl's consumption point when his income was $20 is on his new budget line.

Karl's budget line becomes either steeper or less steep, depending on which good is measured on the x-axis.

The relative price of a bagel in terms of coffee increases if Karl buys more bagels and less coffee.

Karl's budget line shifts outward, and the relative price of a bagel in terms of coffee does not change.

The relative price of a bagel in terms of coffee decreases if Karl buys more bagels and less coffee.

View this question

If the price of the good measured on the horizontal axis increases, how does the consumer's budget line change?

It shifts leftward and parallel to the original budget line.

It shifts rightward and parallel to the original budget line.

It shifts leftward and becomes steeper.

It becomes steeper.

It becomes flatter.

View this question

In a usual week, Karl spends $20 to buy bagels and coffee. This week the price of a coffee rises by $0.50 a cup. Which of the following statements is correct?

The relative price of coffee falls.

Karl's budget line shifts inward and is parallel to his original budget line.

The relative price of a bagel rises.

Karl's budget line shifts outward and is parallel to his original budget line.

The relative price of coffee rises.

View this question

Sam buys gasoline and coffee each week. Which of the following variables does Sam need to be able to draw his budget line for gasoline and coffee?

Only the price of gasoline and the price of coffee.

Only how much coffee he wants to drink and how much gasoline he needs.

Only how much income he plans to spend on coffee and gasoline.

The income he plans to spend on gasoline and coffee, and the prices of gasoline and coffee.

His preferences for gasoline and coffee.

View this question

If the price of the good measured on the horizontal axis falls, the substitution effect of the price rise is indicated by which of the following events?

A movement closer to the origin.

A movement to the steeper part of the same indifference curve.

A movement to a lower indifference curve.

A movement to a higher indifference curve.

A movement to the flatter part of the same indifference curve.

View this question

Jill spends all her income of $30 on jellybeans and cola. If the price of jellybeans is $6 a bag, and the price of cola is $2 a bottle, which of the following combinations of jellybeans and cola lies inside Jill's budget line?

5 bags of jellybeans and 0 bottles of Jolt

5 bags of jellybeans and 15 bottles of Jolt

4 bags of jellybeans and 4 bottles of Jolt

3 bags of jellybeans and 6 bottles of Jolt

2 bags of jellybeans and 8 bottles of Jolt

View this question

Previous
1
67
68
69
78
Next

Want instant access to all verified answers on moodle.uleth.ca?

Get Unlimited Answers To Exam Questions - Install Crowdly Extension Now!

Add to Chrome

Telegram Instagram TikTok Question Bank

Terms of Use Contact Us

Add to Chrome

Add to Chrome