ECN 361 Topic 5 Quiz

1. Question: Thelaborsupplycurvemayhaveabackward-bendingportionif,athigherwages,theincomeeffectis thepriceofricerises,heconsumesmorerice.ForPaulo, 2. Question: Table21-2Aconsumerlikestwogoods:pizzaandbeer.Thefivebundles shownin thefollowingtablelieonthesameindifferencecurvefortheconsumer. 3. Question: RefertoTable21-2. Whichofthefollowingstatementsregardingthesebundlesiscorrect? 4. Question: When a consumer is purchasing the best combination of two goods, X and Y, subject to a budgetconstraint, we say that the consumer is at an optimal choice point. A graph of an optimal choicepointshowsthatitoccurs 5. Question: Whenthepriceofanormalgoodincreases, 6. Question: Table 22-1 …. Three friends—Linda, Stephanie, and Jamie—are deciding where to go together for vacation. They all agree that they should go to one of the three places: France, Greece, or Italy. They also agree that they will have two pairwise votes to determine where to go on vacation, with the majority determining the outcome on each vote. The first, second, and third choices for each person are as indicated in the following table.Refer to Table 22-1. If the first vote pits France against Greece and the second vote pits Italy against the winner of the first vote, then the outcome is as follows:Figure 21-3…..In each case, the budget constraint moves from BC1 to BC2. 7. Question: RefertoFigure21-3.WhichofthegraphsinthefigurecouldreflectasimultaneousincreaseinthepriceofgoodXanddecreaseinthepriceofgoodY? 8. Question: Scenario21-1 …. Supposethepriceofhotwingsis$10,thepriceofbeeris$1,andtheconsumer'sincomeis$50.Inaddition,supposetheconsumer'sbudgetconstraintillustrateshotwingsonthehorizontalaxisandbeerontheverticalaxis.RefertoScenario21-1.Ifthepriceofbeerdoublesto$2,thenthe 9. Question: Whenonepartyisbetterinformedaboutaneconomicsituationthananotherparty,economistsdescribetheproblemas 10. Question: Thetemptation of imperfectlymonitoredworkerstoshirk their responsibilitiesisanexample of