ECON 4720 : 1st Midterm Answer Key Fall 10
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Multiple choice: b, a, d, c, b, b, b, a, d. Match the following descriptions of preferences to the indifference curve diagrams that follow. _a_karen likes broccoli but dislikes liver and would be willing to pay something to not have to eat liver. _e_matthew likes gumbo, and also likes crawfish up to a point but if he eats too much he gets sick. _f_ ann is very picky about her morning coffee, always including 1 ounce of milk to every 8 ounces of coffee. _c_mark likes hamburgers and hotdogs, and his preferences exhibit a diminishing marginal rate of substitution between the two types of food. _b_scott always prefers more pizza but does not care whether or not she has more hamburgers. _d_laurie likes both coffee and tea such that the marginal rate of substitution between these two beverages does not vary with the quantities.
