TEST BANK FOR Microeconomic Theory Basic Principles and Extensions, 12th Edition
Chapter_03_Preferences_and_Utility 1. Indifference curves: a. may sometimes intersect. b. are contour lines only of a linear utility function. c. are convex if the utility function is quasi-concave. d. shift when prices change. ANSWER: c POINTS: 1
2. For an individual who consumes only two goods, x and y, the opportunity cost of consuming one more unit of x in terms of how much y must be given up is reflected by: a. the individual's marginal rate of substitution. b. the market prices of x and y. c. the slope of the individual's indifference curve. d. none of the above. ANSWER: b POINTS: 1
3. If bundles of goods A and B lie on the same indifference curve, one can assume the individual: a. prefers bundle A to bundle B. Copyright Cengage Learning. Powered by Cognero.
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