OSU ECON 311 FINAL Question and answer correctly solved 2025/2026

OSU ECON 311 FINAL Question and
answer correctly solved 2025/2026
Preferences are Rational, if they are: - correct answer ✔1.) Complete,
2.) Reflexive,
3.) Transitive

Complete Preferences - correct answer ✔Given a choice between two bundles,
consumers are able to choose the one they prefer,

X>Y
Y>X
X~Y

Reflexive Preferences - correct answer ✔Consumers are indifferent between
identical bundles.

X~X
(2,3) ~ (2,3)

Transitive Preferences - correct answer ✔If X > Y and Y > Z, then X > Z

Monotonic Preferences - correct answer ✔"More is better"

Convex Preferences - correct answer ✔A mixture of goods are better than an
extreme of one.

Marginal Rate of Substitution (MRS): - correct answer ✔Willingness to trade one
good for another:

MRS: Marginal Utility of Good 1 (X1) divided by the Marginal Utility of Good 2 (X2)

marginal utility - correct answer ✔the extra usefulness or satisfaction a person gets
from acquiring or using one more unit of a product.

U1(X1, X2) = dU(X1, X2) / dX1

What is Demand - correct answer ✔An optimal quantity of a good given prices (and
income).

Input: Price
Output: Optimal Quantity

Law of Demand - correct answer ✔If price increases, then the quantity demanded
goes down.

dX1 / dP1 < 0 --> Creates a downward sloping demand curve