Week 2 : Demand Curves; Uncertainty – Quiz 1. The problem of scarcity(Points : 2) arises only in poor countries.exists because the price of goods is too highexists because of limited resourceswill eventually be solved by better planning.2. The slope of the production possibility frontier shows (Points : 3) how inputs must be changed to keep them fully employed.the technically efficient combinations of the two goods.how demanders are willing to trade one good for another.the opportunity cost of one good in terms of the other.3. The solution to the simultaneous equations 5X ? Y = 10 and 10X + Y = 35 is (Points : 2) X = 15, Y = 0.X = 3, Y = 5.X = 5, Y = 3.None of these4. Suppose QD = – 5P + 44 and QS = P ? 4. Then, the equilibrium price is (Points : 3) 789105. Normative economic analysis (Points : 2) involves the study of what comprises a normal firm.is usually thought to be a waste of time.involves how resources are actually used in an economyinvolves judgments on how resources should be used in an economy.6. Indifference curves (Points : 2) are contour lines of a utility functionare nonintersecting.are negatively slopedAll of the above.7. Suppose that a consumer is willing to give up 2 beers to get an extra steak. Also suppose that the price of a steak is \$10 and a beer costs \$2.5. Then in order to increase utility, this consumer should: (Points : 3) buy more steak and less beer.buy more beer and less steak.continue with current consumption plans.Not enough information to answer the question.8. The X-intercept of the budget constraint represents (Points : 2) how much of good Y can be purchased if no good X is purchased and all income is spent.how much of good X can be purchased if no good Y is purchased and all income is spent.total income divided by the price of X.a and c.9. The point of tangency between a consumer?s budget constraint and his or her indifference curve represents (Points : 3) complete satisfaction for the consumerthe equivalence of prices the consumer pays.constrained utility maximization for the consumer.the least he or she can spend.10. An increase in an individual?s income without changing relative prices will (Points : 2) rotate the budget constraint about the X-axis.shift the indifference curves outward.shift the budget constraint outward in a parallel way.rotate the budget constraint about the Y axis.11. Suppose a cup of coffee at the campus coffee shop is \$1.50, and a cup of hot tea is \$1.25, and a student?s beverage budget is \$20 per week. What is the most cups of tea the student could buy? (Points : 2) 201610812. If people like their goods in fixed proportions, the two goods are (Points : 2) perfect substitutesperfect complementscomplements (but not perfect)substitutes (but not perfect)13. Suppose a teenager likes both rap music (R) and country music (C) with a set of preferences so that U = C1/2R1/2. Which point (C, R) makes the teen the happiest? (Points : 2) 4, 1625, 19, 916, 414. If a person?s indifference curves can be represented as downward sloping straight lines, the person views the goods as (Points : 2) perfect substitutesperfect complementscomplements (but not perfect)substitutes (but not perfect)15. Suppose a cup of coffee at the campus coffee shop is \$1.50 and a cup of hot tea is \$1.25. If a student?s beverage budget is \$20 per week; what is the algebraic expression (equation) of the budget line for this student if C = cups of coffee and T = cups of tea? (Points : 2) 20 = 1.50C + 1.25T20 =1.25C20 = 1.25T20 = 1.25C + 1.5T16. If a person always prefers Indian food to Mexican food, but Mexican food to Italian food, then he/she also: (Points : 2) prefers Indian food to Italian food.is indifferent between Indian food and Italian food.prefers Italian food to Indian foodis indifferent between Italian, Indian and Mexican food.17. Which of the following points in the diagram above represents the highest level of utility?(Points : 2) ABCThey all derive the same utility. 18. The diagram below shows the indifference curves and budget constraints for a consumer that spends all her income buying CDs for two artists: Shakira and James Blunt. James Blunt’s CDs costs \$20, while Shakira’s CD costs \$10. Given this information, we know that at point C the MRS is:(Points : 2) more than 2.exactly 2.less than 2.we can’t say. 19. If the Y-intercept of a linear function increases while the slope remains unchanged (Points : 2) the graph must shift down.the graph must rotate to the left about the X intercept.the graph must shift up.the graph remains unchanged.20. The slope of a nonlinear function at some particular point (Points : 2) is the slope of the straight line that is tangent to the function at that point.is the slope of the straight line connecting the origin and the point.cannot be determined.is constant for the entire function.

## Assignment...

Compensation Purpose and Strategy Document  The purpose of this assignment is to ch...

## While some nurses have shown skepticism and outrag...

These are avoidable errors and regulat...

## Talk Company manufactures 10,000 telephones per ye...

1. Talk Company manufactures 10,000 telephones per year. The full manufacturing costs per telephone are as follows:Dire...

## Art & Design : Interaction Design...

Interaction Designby spng99 INTER, ,CTIOW DESIGNIA beyond human-computer interactionColor Plate 1 Figure 1.2 Novel forms of interactive products embe...

## The Role of Public Health in HCS Understand the fa...

The Role of Public Health in HCS. Understand the factors influencing the health and wellbeing of individuals in health or social care settings....

## Provide an economic or business analysis of an Asi...

Provide an economic or business analysis of an Asian/Pacific feature, organization, custom, social norm, sector or industry (e.g. the Taiwanese n...

## Business Finance : Help with decision analysis qu...

What is Decision Analysis?  When is it most useful?  Briefly outline a generic Decision Analysis process.  How can a decision m...

## Hi need to submit a 250 words essay on the topic I...

I want to answer these question ...

## Health & Medical : Evidence Based Nursing Practice...

Running head: EVIDENCE BASED PRACTICEEvidence Based PracticeNameInstitution1EVIDENCE BASED PRACTICE2Evidence Based PracticeEvidence-based practice is...

## What involvement do children have in their pain ma...

What involvement do children have in their pain management?3- What information do you give parents about pain manag...
Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
\$65
Order a paper. Study better. Sleep tight. Calculate Price!
Calculate Price
Approx. price
\$65