Chapter 9選擇題精華

Microeconomics, Global Edition (Parkin)
Chapter 9 Possibilities, Preferences, and Choices
1 Consumption Possibilities
1) Goods that can be bought in any quantity desired are called

A) divisible goods.
B) indivisible goods.
C) invisible goods.
D) inferior goods.
Answer: A
Topic: Consumption Possibilities
Skill: Definition
AACSB: Analytical thinking
2) Which of the following is NOT a divisible good?

A) gasoline
B) tap water
C) electricity
D) movies
Answer: D
Topic: Consumption Possibilities
Skill: Definition
3) Budget lines are drawn on a diagram with the

A) price of the good on the vertical axis and its quantity on the horizontal axis.
B) price of one good on the vertical axis and the price of another good on the horizontal axis.
C) quantity of the good on the vertical axis and its price on the horizontal axis.
D) quantity of one good on the vertical axis and the quantity of another good on the horizontal
axis.
Answer: D
Topic: Consumption Possibilities, Budget Line
Skill: Definition
4) The variables that determine a household's budget line are

A) its preferences and income.
B) its preferences and prices.
C) prices and income.
D) None of the above are correct.
Answer: C
Skill: Definition
1
5) A budget line shows the
A) consumption possibilities of a consumer at a given level of income and prices.
B) complete set of preferences for a household at various incomes.
C) consumption possibilities for several sets of relative prices at a level of income.
D) rate at which consumers wish to substitute one good for another.
Answer: A
Skill: Definition
6) The budget line ________.

A) shows the limits to a household's consumption choices
B) illustrates a household's preferences
C) defines a household's consumption when prices change
D) shows the income a household needs to be able to buy goods and services
Answer: A
Skill: Definition
7) For a consumer, a budget line shows the boundary between

A) what is desired and what is not desired.
B) what is needed and what is not needed.
C) what is affordable and what is not affordable.
D) what is available and what is not available.
Answer: C
Skill: Definition
8) A household's consumption choices cannot exceed limits created by

A) only the household's income.
B) only the prices of the goods and services that it buys.
C) both the household's income and the prices of the goods and services that it buys.
D) neither the household's income nor the prices of the goods and services that it buys.
Answer: C
Skill: Conceptual
2
9) In order to determine a household's budget line, you must know the
A) prices of the goods bought and the household's income.
B) prices of the goods bought, but not the household's income.
C) household's income, but not the prices of goods bought.
D) household's income, prices of the goods bought, and the household's preferences.
Answer: A
Skill: Definition
10) Sam buys gasoline and coffee each week. In order to draw his budget line between gasoline
and coffee, Sam would have to know
A) only how much income he has available to spend on gasoline and coffee.
B) only the prices of one gallon of gasoline and one pound of coffee.
C) only how much gasoline he wants to buy and how much coffee he wants to drink.
D) both how much income he has to spend and the prices of one gallon of gasoline and one
pound of coffee.
Answer: D
Skill: Definition
11) In order to draw an individual's budget line, we must know

A) prices and preferences.
B) prices and income.
C) income and preferences.
D) prices, income, and preferences.
Answer: B
Skill: Definition
12) Lily is a college student who likes to buy only two goods: Cheetos and Pepsi. To determine
Lily's budget line, you need to know
I. Lily's preferences for Cheetos and Pepsi.
II. The prices of Cheetos and Pepsi.
III. Lily's income.
A) II only
B) I and II
C) II and III
D) I, II and III
Answer: C
Skill: Definition
3
13) All points below the budget line are
A) inferior to every point on the budget line.
B) preferred to every point on the budget line.
C) affordable.
D) Answers A and C are correct.
Answer: C
Skill: Definition
14) All points above the budget line are

A) inferior to every point on the budget line.
B) preferred to every point on the budget line.
C) unaffordable.
D) Both answers B and C are correct.
Answer: C
Skill: Definition
15) Moving along a given budget line

A) prices and real income both decrease.
B) prices fall and real income is constant.
C) real income decreases and prices are constant.
D) prices and real income are constant.
Answer: D
Skill: Definition
16) Tonya, who is rich, and Jerome, who is poorer, both buy orange juice and croissants for
lunch at the student cafeteria. Their budget constraints on a diagram with orange juice on the
vertical axis and croissants on the horizontal have the same
A) horizontal intercepts.
B) vertical intercepts.
C) slopes.
D) midpoints.
Answer: C
Skill: Analytical
4
17) Ernie has an income of $40 which he plans to spend on cookies and milk. The price of milk
is $1 per gallon, and the price of cookies is $2 per dozen. If Ernie buys 12 gallons of milk, how
many dozens of cookies will he buy if he spends all of his income?
A) 28
B) 20
C) 14
D) 12
Answer: C
Skill: Analytical
18) Jake plans to spend $100 on fried chicken and Pepsi. The price of a fried chicken is $5 and
Pepsi is $2 per bottle. If Jake buys 10 fried chickens how many bottles of Pepsi can he buy?
A) 50
B) 10
C) 25
D) 75
Answer: C
Skill: Analytical
19) Bob plans to spend $60 per month on DVD movie rentals and CDs. The price of a movie
rental is $3 and the price of a CD is $15. If Bob rents 5 DVDs per month, how many CDs can he
buy?
A) 1
B) 2
C) 3
D) 4
Answer: C
Skill: Analytical
20) Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a
slice, and the price of gasoline is $2 per gallon. If Larry buys 150 slices of pizza per month, his
budget constraint will allow him to buy ________ gallons of gas per month.
A) 100
B) 80
C) 120
D) 200
Answer: A
Skill: Analytical
5
2 Preferences and Indifference Curves
1) Preferences depend on
A) income but not relative prices.
B) relative prices but not income.
C) neither relative prices nor income.
D) both relative prices and income.
Answer: C
Topic: Preferences and Indifference Curves
Skill: Conceptual
2) Preferences can be described as

A) what a person likes and dislikes.
B) the income opportunities of several activities.
C) feasible consumption combinations.
D) the relative prices of goods and services.
Answer: A
Skill: Conceptual
3) Consumers' preferences are represented by

A) budget lines.
B) indifference curves.
C) relative prices.
D) household income.
Answer: B
Skill: Conceptual
4) Which of the following statements is FALSE?

A) A consumer has only one indifference curve.
B) A consumer possesses a preference map.
C) An indifference curve is a curve that shows the combination of goods among which a
consumer is indifferent.
D) The marginal rate of substitution is the rate at which a consumer will give up good y to get
more of good x and remain on the same indifference curve.
Answer: A
Skill: Conceptual
6
5) Which of the following results in a "parallel" shift outward of your indifference curves
between gasoline and movie rentals?
A) any decrease in the prices of gasoline and movie rentals
B) an equal percentage decrease in the prices of gasoline and movie rentals
C) an increase in your income
D) none of the above
Answer: D
Skill: Conceptual
6) Which of the following will change the slopes of your indifference curves between gasoline
and movie rentals?
A) a change in your preferences for either of the two goods
B) only a change in the price of either of the two goods
C) only a change in your income
D) Both a change in the price of either good and a change in income will change the slopes of
your indifference curves.
Answer: A
Skill: Conceptual
7) An indifference curve shows combinations of goods ________.

A) which the consumer prefers equally
B) that are affordable
C) that are inside or on the budget line
D) that have the same relative price
Answer: A
Topic: Indifference Curves
Skill: Definition
8) An indifference curve shows

A) the relationship between prices and a household's budget.
B) all possible prices and preferences for a good.
C) combinations of goods among which a household is indifferent.
D) budget lines among which a consumer is indifferent.
Answer: C
Skill: Definition
7
9) The combinations of gasoline and coffee along one of Sam's indifference curves are
combinations
A) which require the same total expenditure.
B) that he can afford with his $60.00 income.
C) among which he is "indifferent."
D) that give him the same marginal rate of substitution.
Answer: C
Skill: Definition
10) An indifference curve shows

A) different combinations of two goods among which the consumer is indifferent.
B) consumption possibilities that a consumer faces at different prices and income.
C) affordable combinations of goods.
D) the opportunity cost of one good relative to another.
Answer: A
Skill: Definition
11) Indifference curves are drawn on a diagram with the

A) price of a good on the vertical axis and its quantity on the horizontal axis.
B) price of one good on the vertical axis and the price of another good on the horizontal axis.
C) quantity of a good on the vertical axis and its price on the horizontal axis.
D) quantity of one good on the vertical axis and the quantity of another good on the horizontal
axis.
Answer: D
Skill: Definition
12) An indifference curve is a line that shows combinations of goods among which a consumer
A) needs equally.
B) does not care which combination he or she receives.
C) can afford.
D) has readily available.
Answer: B
Skill: Definition
8
13) A curve/line that shows combinations of goods among which a consumer would not desire
one combination of goods to another combination of goods on that curve/line is called
A) a budget line.
B) an indifference curve.
C) a utility possibilities curve.
D) a demand curve.
Answer: B
Skill: Definition
14) The curve in the above figure shows alternative combinations of gasoline and coffee that
Sam likes equally well. This curve is called
A) a budget line.
B) a demand curve.
C) a consumption curve.
D) an indifference curve.
Answer: D
Skill: Graphing
15) The above figure shows one of Sam's indifference curves between gasoline and coffee.
Which of the following about a movement along Sam's indifference curve is CORRECT?
A) As he moves leftward along the curve, he likes the combinations of gasoline and coffee better
and better.
B) As he moves rightward along the curve, he likes the combinations of gasoline and coffee
better and better.
C) He likes all combinations of gasoline and coffee along the curve equally well.
D) None of the above is true.
9
Answer: C
Skill: Graphing
16) ________ on an indifference curve that is farther from the origin ________ on an
indifference curve that is closer to the origin.
A) Some combinations; are preferred to some combinations
B) Any combination; is preferred to any combination
C) Most combinations; are preferred to all combinations
D) Combinations; are not as affordable as combinations
Answer: B
Skill: Definition
17) If two consumption points are not on the same indifference curve, then one point is
________.
A) a substitute for the other point
B) unaffordable and the other is affordable
C) preferred to the other
D) more expensive than the other
Answer: C
Skill: Definition
18) If the combination of goods consumed at point C is preferred to combination D then

A) point C is on a higher indifference curve.
B) point C is on the same indifference cure but at a point where the vertical axis value is greater
than point D's vertical axis value.
C) point C is on a lower indifference curve.
D) point C is on the same indifference curve but at a point where the horizontal axis value is
greater than point D's horizontal axis value.
Answer: A
Skill: Conceptual
19) Along an indifference curve

A) the marginal rate of substitution is constant but not equal to zero.
B) the consumer does not prefer one consumption point to another.
C) the marginal rate of substitution is equal to 0.
D) the consumer prefers some of the consumption points to others.
Answer: B
Skill: Conceptual
10
20) Except for perfect complements, an indifference curve has a ________ slope and becomes
________ moving to the right.
A) negative; flatter
B) negative; steeper
C) positive; flatter
D) positive; steeper
Answer: A
Skill: Analytical
11
3 Predicting Consumer Choices
1) In an indifference curve/budget line diagram, a consumer's equilibrium consumption

combination will occur
A) inside the budget line.
B) outside the budget line.
C) on the budget line.
D) at the origin.
Answer: C
Topic: Predicting Consumer Behavior, Best Affordable Point
Skill: Conceptual
2) Which of the following statements is TRUE?

A) Every point on a budget line lies on an indifference curve.
B) To determine a consumer's best affordable point, we need only the budget line or the
indifference curve.
C) The price effect is shown by moving up or down a fixed budget line.
D) Both A and B are true.
Answer: A
Skill: Conceptual
3) The point where the indifference curve is tangent to the budget line
A) is the best affordable point.
B) is where the marginal rate of substitution exceeds the relative price by as much as possible.
C) is a point on consumer's demand curve.
D) All of the above answers are correct.
Answer: A
Skill: Conceptual
4) In an indifference curve/budget line diagram, a consumer will select the combination of goods
that is on the budget line and for which the
A) marginal rate of substitution between two goods is equal to the relative price of the two
goods.
B) marginal rate of substitution between two goods is greater than the relative price of the two
goods.
C) slope of the indifference curve is less than the relative price of the two goods.
D) slope of the indifference curve is greater than the relative price of the two goods.
Answer: A
Skill: Conceptual
12
5) When the consumer is at his or her best affordable consumption point, it is the case that the
marginal rate of substitution is
A) greater than the price ratio.
B) equal to the price ratio.
C) less than the price ratio.
D) maximized.
Answer: B
Skill: Conceptual
6) Samara's income is $30 a month and she spends all of it on music downloads and gasoline.
The price of a music download is $1.50 and the price of a gallon of gasoline is $3. At Samara's
best affordable point, her marginal rate of substitution is ________ per video tape.
A) 0.5 of a download
B) 1 download
C) 1.5 downloads
D) 2 downloads
Answer: A
Skill: Analytical
7) Samara's income is $30 a month and she spends all of it on music downloads and gasoline.
The price of a music download is $3 and the price of a gallon of gasoline is $3. At Samara's best
affordable point, her marginal rate of substitution is ________ gallon of gasoline per music
download.
A) 0.5
B) 1
C) 1.5
D) More information is needed to determine the marginal rate of substitution.
Answer: B
Skill: Analytical
8) When a consumer is at his or her best affordable point, the budget line
A) is flatter than the highest attainable indifference curve.
B) is tangent to the highest attainable indifference curve.
C) is steeper than the highest attainable indifference curve.
D) does not touch the highest attainable indifference curve.
Answer: B
Skill: Conceptual
13
9) In a budget line/indifference curve diagram, at the consumer equilibrium
A) any movement upward or downward on the budget line will move the consumer to a less
preferred point.
B) any movement to the northeast to higher indifference curves moves the consumer to a less
preferred point.
C) the slope of the budget line is as much larger as possible than the marginal rate of
substitution.
D) All of the above statements are correct.
Answer: A
Skill: Conceptual
10) If Rachel is at her best affordable point, then ________.

A) her marginal rate of substitution equals 1
B) her marginal rate of substitution is maximized
C) the relative price of the goods she buys equals the marginal rate of substitution
D) she is indifferent among other points on her budget line
Answer: C
Skill: Analytical
11) If consumers buy only gasoline and food, at their best affordable choice the marginal rate of
substitution between food and gasoline ________ the relative price of food and gasoline.
A) must exceed
B) must be less than the
C) must equal
D) might exceed or be less than but not equal to
Answer: C
Skill: Conceptual
12) In an indifference curve/budget line diagram, at your consumer equilibrium, that is, your best
affordable point, which of the following statements is CORRECT?
A) Any movement upward or downward on your budget line will move you to a less preferred
point.
B) Any movement upward or downward on your indifference curve will move you to a less
preferred point.
C) Your marginal rate of substitution is greater than the magnitude of the budget line by as much
as possible.
D) All of the above are correct.
Answer: A
Skill: Analytical
14
13) Tunitra consumes at a point on her budget line where her marginal rate of substitution
exceeds the magnitude of the slope of her budget line. As Tunitra moves toward her consumer
equilibrium point, she will move to a
A) lower budget line.
B) higher budget line.
C) lower indifference curve.
D) higher indifference curve.
Answer: D
Skill: Analytical
14) Larry consumes at a point on his budget line where his marginal rate of substitution is less
than the magnitude of the slope of his budget line. As Larry moves toward his consumer
equilibrium point, he will move to a
A) lower budget line.
B) higher budget line.
C) lower indifference curve.
D) higher indifference curve.
Answer: D
Skill: Analytical
15) The price of one good changes and Sue is now at a point on her indifference curve where the
marginal rate of substitution exceeds the relative price. Sue will now choose to buy ________ of
the good that is measured on the ________.
A) more; x-axis
B) more; y-axis
C) the same quantity; x-axis
D) less; x-axis
Answer: A
Skill: Analytical
16) When a consumer is consuming at a point where his or her budget line is not as steep as his
or her indifference curve, then he or she should
A) consume more of the good that is measured on the horizontal axis.
B) consume less of the good that is measured on the horizontal axis.
C) not change his or her behavior.
D) consume none of the good that is measured on the horizontal axis.
Answer: A
Skill: Analytical
15
17) At the best affordable point, consumers equate their marginal rates of substitution to
A) their money income.
B) their real income.
C) relative prices.
D) relative quantities.
Answer: C
Skill: Conceptual
18) The above figure shows Sam's budget line and one of his indifference curves. What
combination of coffee and gasoline will Sam select?
A) combination a because that contains all the gasoline he needs and still has some coffee
B) combination c because that contains all the coffee he needs and some gasoline
C) combination b because it is on his budget line and on the highest attainable indifference curve
D) none of the above
Answer: C
Skill: Graphing
16
19) The figure illustrates Sally's budget line and her preferences. Point ________ is Sally's best
affordable point, and Sally prefers point ________ to point ________.
A) A; B; A
B) E; C; B
C) B; A; B
D) B; B; D
Answer: C
Skill: Graphing
17
20) Your weekly budget for gasoline and movie rentals is $45.00. Referring to the figure above,
what is the price per gallon of gasoline?
A) $1.00
B) $1.25
C) $1.50
D) $1.75
Answer: C
Skill: Graphing
18

Chapter 9選擇題精華

Uploaded by

Copyright:

Available Formats

Chapter 9選擇題精華

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chapter 9選擇題精華

Uploaded by

Copyright:

Available Formats

Microeconomics, Global Edition (Parkin)

Chapter 9 Possibilities, Preferences, and Choices

1) Goods that can be bought in any quantity desired are called

2) Which of the following is NOT a divisible good?

3) Budget lines are drawn on a diagram with the

4) The variables that determine a household's budget line are

6) The budget line ________.

7) For a consumer, a budget line shows the boundary between

8) A household's consumption choices cannot exceed limits created by

11) In order to draw an individual's budget line, we must know

14) All points above the budget line are

15) Moving along a given budget line

2) Preferences can be described as

3) Consumers' preferences are represented by

4) Which of the following statements is FALSE?

7) An indifference curve shows combinations of goods ________.

8) An indifference curve shows

10) An indifference curve shows

11) Indifference curves are drawn on a diagram with the

18) If the combination of goods consumed at point C is preferred to combination D then

19) Along an indifference curve

1) In an indifference curve/budget line diagram, a consumer's equilibrium consumption

2) Which of the following statements is TRUE?

10) If Rachel is at her best affordable point, then ________.

You might also like