Economics

Consumers quiz

Dept. of Economics @ NCKU

Weng, Ming-Hung
Q1
The slope of budget line
is -1/2. It means
1. Each pair of jeans is
worth 1/2 unit of a
sweater
2. The cost of each
sweater is 1/2 pair of
jeans
 Q2

If all income is spent and 3 = < = 5,

the consumer can benefit by
1. exchanging sweaters for jeans
2. exchanging jeans for sweaters
3. no means
 Q3
Last 5 hours before the final. The table shows the
marginal grade each additional hour can bring. If you
only care the sum of the two grades, while m hours
on math and e hours on economics respectively is
optimal arrangement of time. Then (m, e)=
1. (0, 5)
2. (5, 0) 1st 2nd 3rd 4th 5th
3. (4, 1)
4. (2, 3) 32 26 20 14 8
5. (3, 2) 25 19 13 7 1

 Q4
Which graph reflects a decrease in the price of
jeans? 1. A; 2. B; 3. C; 4. none of them
 Q5
Substitution effect says that,
if goes up by 50%, and
suppose you can still buy
the original bundle, you will
switch to
1. More jeans, fewer sweaters
2. Fewer jeans, more sweater
 Q6
If the income drops, and
jeans are normal goods,
you will buy
1. More pairs of jeans
2. Fewer pairs of jeans