SISON 5

For a Giffen good, the income effect is ...................... substitution effect.

• greater than

• smaller than

• the same as

Which of the following points is utility maximization?

• A

• B

• C

• F

Which bundle offers higher utility compared to bundle A?

• B

• C

• D

• E

"If bundle a is preferred to bundle b and bundle b is preferred to bundle c, then bundle a must be preferred to bundle c" belongs to which of the following assumptions?

• Completeness

• Transitivity

• Consumers prefer more to less

Which of the following bundles is unaffordable?

• Bundle B

• Bundle E

• Bundle K

• Bundle G

"If bundle b offers more films but as many meals as bundle c, we assume bundle b is preferred." belong to which of the following assumptions?

• Completeness

• Transitivity

• Consumers prefer more to less

• Consumers prefer the best option

For a normal good, the income and substitution effects move in .................. direction.

• the opposite

• the same

"The consumer can always rank alternative bundles of goods according to the satisfaction or utility they provide" belongs to which of the following assumptions?

• Completeness

• Transitivity

• Consumers prefer more to less

• Consumers prefer the best option

Which of the followings is the correct budget line function?

• M = PxX + PyY

• M = PxY + PyX

• M = (Px + Py) x (X + Y)

Which indifferent curve offers the best utility?

• U1

• U2

• U3