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Consumer Theory vs. Real Consumers

If leisure is a normal good, an increase in the wage ?

Consumer Theory vs. Real Consumers, Economics Mcqs /
If leisure is a normal good, an increase in the wage ?

A. will always increase the quantity of labor supplied
B. will increase the amount of labor supplied if the substitution effect outweighs the income effect
C. will increase the amount of labor supplied if the income effect outweighs the substitution effect
D. will always decrease the amount of labor supplied

If leisure is a normal good, an increase in the wage ? Read More »

Consumer Theory vs. Real Consumers, Economics Mcqs

The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ?

Consumer Theory vs. Real Consumers, Economics Mcqs /
The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ?

A. inferior effect
B. normal effect
C. substitution effect
D. complementary effect
E. income effect

The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ? Read More »

Consumer Theory vs. Real Consumers, Economics Mcqs

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The income effect is represented by the movement from point ?

Consumer Theory vs. Real Consumers, Economics Mcqs /
Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The income effect is represented by the movement from point ?

A. X to point Y
B. X to point Z
C. Y to point X
D. Z to point X

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The income effect is represented by the movement from point ? Read More »

Consumer Theory vs. Real Consumers, Economics Mcqs

Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 If the price of a belt is €10 and the price of a pair of socks is €5, the consumer will choose to buy the commodity bundle represented b point ?

Consumer Theory vs. Real Consumers, Economics Mcqs /
Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 If the price of a belt is €10 and the price of a pair of socks is €5, the consumer will choose to buy the commodity bundle represented b point ?

A. Z
B. X
C. Y
D. the optimal point cannot be determined from this graph

Refer to Exhibit 4. Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 If the price of a belt is €10 and the price of a pair of socks is €5, the consumer will choose to buy the commodity bundle represented b point ? Read More »

Consumer Theory vs. Real Consumers, Economics Mcqs

If an increase in a consumer’s income causes the consumer to increase his quantity demand of a good, then the good is ?

Consumer Theory vs. Real Consumers, Economics Mcqs /
If an increase in a consumer’s income causes the consumer to increase his quantity demand of a good, then the good is ?

A. a complementary good
B. an inferior good
C. a normal good
D. a substitute good

If an increase in a consumer’s income causes the consumer to increase his quantity demand of a good, then the good is ? Read More »

Consumer Theory vs. Real Consumers, Economics Mcqs

Which of the following is true about the consumer’s optimum consumption bundle? At the optimum ?

Consumer Theory vs. Real Consumers, Economics Mcqs /
Which of the following is true about the consumer’s optimum consumption bundle? At the optimum ?

A. the slope of the indifference curve equals the slope of the budget constraint
B. the indifference curve is tangent to the budget constraint
C. the relative prices of the two goods equals the marginal rate of substitution
D. none of these answers are true
E. all of these answers are true

Which of the following is true about the consumer’s optimum consumption bundle? At the optimum ? Read More »

Consumer Theory vs. Real Consumers, Economics Mcqs

Which of the following statements is not true with regard to the standard properties of indifference curves ?

Consumer Theory vs. Real Consumers, Economics Mcqs /
Which of the following statements is not true with regard to the standard properties of indifference curves ?

A. Indifference curves are downward slog
B. indifference curves are bowed outward
C. Indifference curves do not cross each other
D. Higher indifference curve is preferred to lower ones

Which of the following statements is not true with regard to the standard properties of indifference curves ? Read More »

Consumer Theory vs. Real Consumers, Economics Mcqs

uppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis and if the price of a pizza is Rs10 and the price of a sandwich is Rs5, then the slope of the budget constraint is ?

Consumer Theory vs. Real Consumers, Economics Mcqs /
uppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis and if the price of a pizza is Rs10 and the price of a sandwich is Rs5, then the slope of the budget constraint is ?

A. 2
B. 10
C. 1/2
D. 5

uppose a consumer must choose between the consumption of sandwiches and pizza. If we measure the quantity of pizza on the horizontal axis and the quantity of sandwiches on the vertical axis and if the price of a pizza is Rs10 and the price of a sandwich is Rs5, then the slope of the budget constraint is ? Read More »

Consumer Theory vs. Real Consumers, Economics Mcqs