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ECON 1580 2026 ACTUAL
QUESTIONS WITH VERIFIED
ANSWERS.
In this exhibit (Consumer Equilibrium 1), assume that the price
of good X is $2 per unit and the price of good Y is $1 per unit,
and you consume 3 units of good X and 3 units of good Y. To
maximize utility, assuming that the goods are divisible, you
would consume:
Select one:
a.less of both X and Y.
b.more of both X and Y.
c.less of X and more of Y.
d.more of X and less of Y. - correct answer-c.less of X and
more of Y.
If the price of apples falls and the price of oranges remains
constant:
Select one:
a.apples are now relatively cheaper.
b.the fall in the price of apples made consumers richer.
c.the fall in the price of apples, ceteris paribus, makes the
marginal utility of apples divided by their price exceed the
marginal utility of oranges divided by their price.
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d.all of the above statements are true. - correct answer-d.all of
the above statements are true
The textbook states that the law of demand:
Select one:
a.is nonsense.
b.is difficult to verify.
c.is confirmed by our real-world experience.
d.is not valid in theory. - correct answer-c.is confirmed by our
real-world experience
An indifference curve shows combinations of two goods that
yield:
Select one:
a.equal prices.
b.equal money income.
c.equal satisfaction.
d.increasing prices. - correct answer-c.equal satisfaction.
A curve that represents combinations of two goods that yield
equal levels of satisfaction is a/an:
Select one:
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a.indifference curve.
b.budget curve.
c.marginal utility curve.
d.price-consumption curve. - correct answer-a.indifference
curve
The marginal rate of substitution assumes that:
Select one:
a.prices remain unchanged.
b.money income remains unchanged.
c.satisfaction remains unchanged.
d.the quantities of both goods remain unchanged. - correct
answer-c.satisfaction remains unchanged
If consumer income, preferences, and the prices of all other
goods remain constant while the price of X varies, the amount
purchased of X is defined by the:
Select one:
a.demand curve.
b.price-consumption curve.
c.income-consumption curve.
d.price line. - correct answer-a.demand curve
ECON 1580 2026 ACTUAL
QUESTIONS WITH VERIFIED
ANSWERS.
In this exhibit (Consumer Equilibrium 1), assume that the price
of good X is $2 per unit and the price of good Y is $1 per unit,
and you consume 3 units of good X and 3 units of good Y. To
maximize utility, assuming that the goods are divisible, you
would consume:
Select one:
a.less of both X and Y.
b.more of both X and Y.
c.less of X and more of Y.
d.more of X and less of Y. - correct answer-c.less of X and
more of Y.
If the price of apples falls and the price of oranges remains
constant:
Select one:
a.apples are now relatively cheaper.
b.the fall in the price of apples made consumers richer.
c.the fall in the price of apples, ceteris paribus, makes the
marginal utility of apples divided by their price exceed the
marginal utility of oranges divided by their price.
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d.all of the above statements are true. - correct answer-d.all of
the above statements are true
The textbook states that the law of demand:
Select one:
a.is nonsense.
b.is difficult to verify.
c.is confirmed by our real-world experience.
d.is not valid in theory. - correct answer-c.is confirmed by our
real-world experience
An indifference curve shows combinations of two goods that
yield:
Select one:
a.equal prices.
b.equal money income.
c.equal satisfaction.
d.increasing prices. - correct answer-c.equal satisfaction.
A curve that represents combinations of two goods that yield
equal levels of satisfaction is a/an:
Select one:
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a.indifference curve.
b.budget curve.
c.marginal utility curve.
d.price-consumption curve. - correct answer-a.indifference
curve
The marginal rate of substitution assumes that:
Select one:
a.prices remain unchanged.
b.money income remains unchanged.
c.satisfaction remains unchanged.
d.the quantities of both goods remain unchanged. - correct
answer-c.satisfaction remains unchanged
If consumer income, preferences, and the prices of all other
goods remain constant while the price of X varies, the amount
purchased of X is defined by the:
Select one:
a.demand curve.
b.price-consumption curve.
c.income-consumption curve.
d.price line. - correct answer-a.demand curve
