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King: Economics

Chapter 06

Instructions

Answer the following questions and then press 'Submit' to get your score.

Question 1

Which of the following statements about the market demand curve for a product is false?

Question 2

Which of the following does the principle of diminishing marginal utility say about what happens when a consumer consumes more of a product?

Question 3

A consumer finds that for product A, the price is £5 and the consumer's marginal utility is 100 utils, while for product B, the price is £10 and the consumer's marginal utility is 160 utils. Which of the following statements is true?

Question 4

Which of the following factors does not help to explain why most indifference curves between consumer products slope down to the right and are curved rather than straight?

Question 5

Which of the following factors does not affect the slope and position of a consumer's budget line between two products, A and B?

Question 6

A consumer plots an indifference map between two products A and B, and marks in points to show the combinations of A and B that the consumer would buy if the price of A changed but the price of B remained the same. The consumer then plots a line through these points. Which of the following is this curve called?

Question 7

A consumer plots an indifference map between two products A and B, and marks in points to show the combinations of A and B that the consumer would buy if the prices of A and B remained the same but the consumer's income increased. Which of the following statements about this line is false?

Question 8

Suppose a consumer faces a rise in the price of product A while the consumer's income remains unchanged. Which of the following statements about the income effect is false?

Question 9

Suppose we draw an indifference map diagram to explore the hours of work a worker will choose to do. Which of the following will not apply to this diagram?

Question 10

Which of the following statements about labour supply curves at high wages is true?