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9) Which one of the following statements is false? A) Indifference curves are bowed out from the origin. B) The marginal rate of substitution is the magnitude of the slope of an indifference curve, C) The marginal rate of substitution increases as a consumer moves up along an indifference curve for ordinary goods. D) Indifference curves are negatively sloped. E) A preference map consists of a series of indifference curves.

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Related questions

18. Which of the following statements is false? A) A consumer possesses a preference map. B) An indifference curve is a line that shows combinations of goods among which a consumer is indifferent. C) A consumer has only one indifference curve. D) The marginal rate of substitution is the rate at which a consumer will give up good y to get an additional unit of good x and remain on the same indifference curve. E) If the indifference curve is steep, the marginal rate of substitution is high.

20) When a consumer's marginal rate of substitution between X and Y is equal to the ratio of prices for X and Y, and when the consumer is spending all available income, then A) the budget line is tangent to an indifference curve. B) the consumer is not maximizing his utility. C) a higher indifference curve can be reached given the existing budget line. D) the budget line is tangent to the indifference curve at all quantities of X and Y. E) all budget lines are tangent to all indifference curves.

1. Assume that beer is an inferior good for Wei. If the price of beer goes up, then the total effect results in Wei buying _______ beer and the substitution effect results in Wei buying ______ beer.

a.

more, more

b.

more, less

c.

less, more

d.

less, less

e.

not enough information to determine

2. A consumer has preferences that are complete, transitive and satisfy the "more is better" property. Which of the following statements are necessarily true?

a.

Indifference curves are negatively sloped.

b.

Indifference curves do not cross.

c.

Indifference curves exhibit diminishing marginal rates of substitution.

d.

Both a) and b) are true.

e.

a), b), and c) are true.

3. Suppose an individual has preferences over two goods - good X and good Y. In response to changes in the price of good X, the individual has a positively sloped price consumption curve, where good X is drawn on the horizontal axis. Which of the following statements is true?

a.

Good Y is a normal good.

b.

Good Y is a Giffen good.

c.

Good Y is a complement for good X.

d.

Good Y is an inferior good.

e.

Good Y is a substitute for good X.

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