C211 COMPETENCY 3 QUIZ WITH
COMPLETE ANSWERS { GUARANTEED
A+}
The limit on the consumption bundles that a consumer can afford - ✔✔budget
constraint
Budget constraint shows _______________________ - ✔✔the various bundles of
goods that the consumer can buy for a given income
the slope of the budget constraint equals - ✔✔the relative price of the two goods
an increase in income leads to _____________________ with respect to the budget
line - ✔✔the budget line shifting out in a parallel fashion with no change in slope
an increase in price of one of the goods leads to _____________________ -
✔✔the budget line pivoting/winging in
, a decrease in price in one of the good leads to __________________ - ✔✔the
budget line pivoting/swinging out
if the prices of both goods decreased by 10%, what would happen to the budget
line? - ✔✔outward shift of the budget line and no change in slope
what does an indifference curve represent? - ✔✔the consumption bundles which
give the consumer the same amount of satisfaction
a person will be ________________ with any choice on the indifference curve. -
✔✔equally satisfied
(4) properties of indifference curves - ✔✔- downward sloping to the right
- convex to origin
- do not intersect
-higher ones are better
Total Cost = - ✔✔total fixed cost + total variable cost
costs that do not vary with the quantity of output produced, and give example -
✔✔fixed costs, cost of land, equipment, rent
COMPLETE ANSWERS { GUARANTEED
A+}
The limit on the consumption bundles that a consumer can afford - ✔✔budget
constraint
Budget constraint shows _______________________ - ✔✔the various bundles of
goods that the consumer can buy for a given income
the slope of the budget constraint equals - ✔✔the relative price of the two goods
an increase in income leads to _____________________ with respect to the budget
line - ✔✔the budget line shifting out in a parallel fashion with no change in slope
an increase in price of one of the goods leads to _____________________ -
✔✔the budget line pivoting/winging in
, a decrease in price in one of the good leads to __________________ - ✔✔the
budget line pivoting/swinging out
if the prices of both goods decreased by 10%, what would happen to the budget
line? - ✔✔outward shift of the budget line and no change in slope
what does an indifference curve represent? - ✔✔the consumption bundles which
give the consumer the same amount of satisfaction
a person will be ________________ with any choice on the indifference curve. -
✔✔equally satisfied
(4) properties of indifference curves - ✔✔- downward sloping to the right
- convex to origin
- do not intersect
-higher ones are better
Total Cost = - ✔✔total fixed cost + total variable cost
costs that do not vary with the quantity of output produced, and give example -
✔✔fixed costs, cost of land, equipment, rent
