Question 1 (1 point) (1 Point) We assume that the representative consumer's preferences exhibit the properties...

  

Transcribed Image Text:

Question 1 (1 point) (1 Point) We assume that the representative consumer's preferences exhibit the properties that O a) they evolve over time and that more is always preferred to less. O b) more is sometimes preferred to less and that consumption and leisure are both normal goods O c) more is preferred to less and that the consumer prefers diversity. d) the consumer likes diversity and that more is sometimes preferred to less. Question 2 (1 point) (1 Point) A good is inferior for a consumer if a) its consumption rises when income rises. b) its consumption falls when income rises. c) some minimal level of the good must be consumed to assure the consumer's survival. d) it is never included in his or her consumption bundle. Question 3 (1 point) (1 Point) The marginal rate of transformation is defined as a) the amount of good Y substituted for good X by a consumer. Ob) the amount of good Y that a consumer is willing to substitute for good X and stay at a given level of satisfaction. Od the feasible rate of substitution given prices. Od) None of the above Question 4 (1 point) (1 Point) In a one-period economy a) savings is always zero. b) consumption equals disposable income plus the value of non-market work. c) consumers may increase their consumption by borrowing. d) consumption does not equal disposable income. Question 1 (1 point) (1 Point) We assume that the representative consumer's preferences exhibit the properties that O a) they evolve over time and that more is always preferred to less. O b) more is sometimes preferred to less and that consumption and leisure are both normal goods O c) more is preferred to less and that the consumer prefers diversity. d) the consumer likes diversity and that more is sometimes preferred to less. Question 2 (1 point) (1 Point) A good is inferior for a consumer if a) its consumption rises when income rises. b) its consumption falls when income rises. c) some minimal level of the good must be consumed to assure the consumer's survival. d) it is never included in his or her consumption bundle. Question 3 (1 point) (1 Point) The marginal rate of transformation is defined as a) the amount of good Y substituted for good X by a consumer. Ob) the amount of good Y that a consumer is willing to substitute for good X and stay at a given level of satisfaction. Od the feasible rate of substitution given prices. Od) None of the above Question 4 (1 point) (1 Point) In a one-period economy a) savings is always zero. b) consumption equals disposable income plus the value of non-market work. c) consumers may increase their consumption by borrowing. d) consumption does not equal disposable income.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Question 1 Answer d the consumer likes ... View the full answer