Essay on Eco 2023 Economics Mcqs Assignment

780 Words Mar 16th, 2016 4 Pages
ECO 2023 Economics MCQs Assignment

Click Link Below To Buy: http://hwcampus.com/shop/eco-2023-economics-mcqs-assignment/ 1. Assume that a consumer purchases a combination of products X and Y and MUx / Px = 75 utils per dollar and MUy / Py = 50 utils per dollar. To maximize utility without spending more dollars, the consumer should buy: a.more of Y and less of X.

b.more of X and less of Y.

c.less of both X and Y.

d.less of Y only if the price of Y increases.

e.more of both X and Y.

2. The different combinations of any two goods that an individual can afford to purchase, given his income and prices, is shown by: a.an indifference curve.

b.a supply curve.

c.a demand curve.

d.an indifference
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e.the availability of raw materials for producing the goods and services.

5. Following a decrease in the price of a good, an individual will purchase more of the now less expensive good and less of other more expensive goods. This is known as the _____ effect. a.income

b.price

c.endowment

d.scale

e.substitution

6. _____ is the understanding that perfect information is not likely to be available, and that as a result, people make decisions that in hindsight look irrational, but in reality are the rational results of a brain that is economizing. a.Bounded rationality

b.Reasoning

c.Parametric determinism

d.Rational ignorance

e.Dynamic inconsistency

7. If total utility increases by smaller and smaller amounts as more units of a product are consumed, then marginal utility is: a.decreasing and is a negative amount.

b.decreasing and is a positive amount.

c.zero.

d.increasing and is a positive amount.

e.increasing and is a negative amount.

8. The law of diminishing marginal utility states that as additional units are consumed, satisfaction per unit will decline.
a. True
b. False

9. The table below shows the total utility associated with various units of goods X and Y.

Table 7.5
Quantity Total Utility from X Total Utility from Y
1 24 85
2 42 130
3 56 160
4 66 185
5 74 200
6 80 210
7 84 215

Refer to

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