Test Bank Complete_
Intermediate Microeconomics: A Modern Approach Ninth Edition (9th),
By Hal R. Varian
All Chapters 1-38| Updated With Verified Answers| Rated A+
From: [Bestmaxsolutions.Stuvia
,Chapter 2: Budget Constraint ------------------------------------------------------------------------------------- 4
Chapter 3: Preferences -------------------------------------------------------------------------------------------- 36
Chapter 4: Utility --------------------------------------------------------------------------------------------------- 59
Chapter 5: Choice--------------------------------------------------------------------------------------------------- 85
Chapter 6: Demand ---------------------------------------------------------------------------------------------- 116
Chapter 7: Revealed Preference ------------------------------------------------------------------------------ 152
Chapter 8: Slutsky Equation ----------------------------------------------------------------------------------- 184
Chapter 9: Buying And Selling -------------------------------------------------------------------------------- 207
Chapter 10: Intertemporal Choice --------------------------------------------------------------------------- 245
Chapter 11: Asset Markets------------------------------------------------------------------------------------- 273
Chapter 12: Uncertainty ---------------------------------------------------------------------------------------- 297
Chapter 13: Risky Assets---------------------------------------------------------------------------------------- 320
Chapter 14: Consumer’s Surplus ------------------------------------------------------------------------------ 330
Chapter 15: Market Demand ---------------------------------------------------------------------------------- 349
Chapter 16: Equilibrium ---------------------------------------------------------------------------------------- 393
Chapter 17: Measurement ------------------------------------------------------------------------------------- 418
Chapter 18: Auctions -------------------------------------------------------------------------------------------- 429
Chapter 19: Technology ---------------------------------------------------------------------------------------- 448
Chapter 20: Profit Maximization ----------------------------------------------------------------------------- 470
Chapter 21: Cost Minimization ------------------------------------------------------------------------------- 496
Chapter 22: Cost Curves ---------------------------------------------------------------------------------------- 536
Chapter 23: Firm Supply ---------------------------------------------------------------------------------------- 561
Chapter 24: Industry Supply ----------------------------------------------------------------------------------- 581
Chapter 25: Monopoly ------------------------------------------------------------------------------------------ 608
Chapter 26: Monopoly Behavior ----------------------------------------------------------------------------- 648
Chapter 27: Factor Markets ----------------------------------------------------------------------------------- 665
Chapter 28: Oligopoly ------------------------------------------------------------------------------------------- 677
Chapter 29: Game Theory -------------------------------------------------------------------------------------- 708
Chapter 30: Game Applications ------------------------------------------------------------------------------ 729
Chapter 31: Behavioral Economics -------------------------------------------------------------------------- 771
,Chapter 32: Exchange ------------------------------------------------------------------------------------------- 789
Chapter 33: Production ----------------------------------------------------------------------------------------- 826
Chapter 34: Welfare --------------------------------------------------------------------------------------------- 850
Chapter 35: Externalities --------------------------------------------------------------------------------------- 864
Chapter 36: Information Technology ----------------------------------------------------------------------- 890
Chapter 37: Public Goods -------------------------------------------------------------------------------------- 902
Chapter 38: Information---------------------------------------------------------------------------------------- 916
,Chapter 2: Budget Constraint
Hal R. Varian: Intermediate Microeconomics: A Modern Approach Ninth Edition (9Th) Test Bank
TRUE/FALSE
1. If There Are Two Goods With Positive Prices And The Price Of One Good Is
Reduced, While Income And Other Prices Remain Constant, Then The Size Of The
Budget Set Is Reduced.
ANS: False
Dif: 1
2. If Good 1 Is Measured On The Horizontal Axis And Good 2 Is Measured On The
Vertical Axis And If The Price Of Good 1 Is P1 And The Price Of Good 2 Is P2, Then
The Slope Of The Budget Line Is −P2/P1.
ANS: False
Dif: 1
3. If All Prices Are Doubled And Money Income Is Left The Same, The Budget Set Does
Not Change Because Relative Prices Do Not Change.
ANS: False
Dif: 1
,4. If There Are Two Goods And If One Good Has A Negative Price And The Other Has
A Positive Price, Then The Slope Of The Budget Line Will Be Positive.
ANS: True
Dif: 1
5. If All Prices Double And Income Triples, Then The Budget Line Will Become
Steeper.
ANS: False
Dif: 1
6. If Good 1 Is On The Horizontal Axis And Good 2 Is On The Vertical Axis, Then An
Increase In The Price Of Good 1 Will Not Change The Horizontal Intercept Of The
Budget Line.
ANS: False
Dif: 1
7. If There Are Two Goods And The Prices Of Both Goods Rise, Then The Budget Line
Must Become Steeper.
ANS: False
Dif: 1
8. There Are Two Goods. You Know How Much Of Good 1 A Consumer Can Afford If
She Spends All Of Her Income On Good 1. If You Knew The Ratio Of The Prices Of
, The Two Goods, Then You Could Draw The Consumer’s Budget Line Without Any
More Information.
ANS: True
Dif: 1
9. A Consumer Prefers More To Less Of Every Good. Her Income Rises, And The Price
Of One Of The Goods Falls While Other Prices Stay Constant. These Changes Must
Have Made Her Better Off.
ANS: True
Dif: 1
10. There Are 3 Goods. The Price Of Good 1 Is −1, The Price Of Good 2 Is 1, And The
Price Of Good 3 Is 2. It Is Physically Possible For A Consumer To Consume Any
Commodity Bundle With Nonnegative Amounts Of Each Good. A Consumer Who Has
An Income Of 10 Could Afford To Consume Some Commodity Bundles That Include 5
Units Of Good 1 And 6 Units Of Good 2.
ANS: True
Dif: 2
11. A Decrease In Income Pivots The Budget Line Around The Bundle Initially
Consumed.
ANS: False
Dif: 1
Intermediate Microeconomics: A Modern Approach Ninth Edition (9th),
By Hal R. Varian
All Chapters 1-38| Updated With Verified Answers| Rated A+
From: [Bestmaxsolutions.Stuvia
,Chapter 2: Budget Constraint ------------------------------------------------------------------------------------- 4
Chapter 3: Preferences -------------------------------------------------------------------------------------------- 36
Chapter 4: Utility --------------------------------------------------------------------------------------------------- 59
Chapter 5: Choice--------------------------------------------------------------------------------------------------- 85
Chapter 6: Demand ---------------------------------------------------------------------------------------------- 116
Chapter 7: Revealed Preference ------------------------------------------------------------------------------ 152
Chapter 8: Slutsky Equation ----------------------------------------------------------------------------------- 184
Chapter 9: Buying And Selling -------------------------------------------------------------------------------- 207
Chapter 10: Intertemporal Choice --------------------------------------------------------------------------- 245
Chapter 11: Asset Markets------------------------------------------------------------------------------------- 273
Chapter 12: Uncertainty ---------------------------------------------------------------------------------------- 297
Chapter 13: Risky Assets---------------------------------------------------------------------------------------- 320
Chapter 14: Consumer’s Surplus ------------------------------------------------------------------------------ 330
Chapter 15: Market Demand ---------------------------------------------------------------------------------- 349
Chapter 16: Equilibrium ---------------------------------------------------------------------------------------- 393
Chapter 17: Measurement ------------------------------------------------------------------------------------- 418
Chapter 18: Auctions -------------------------------------------------------------------------------------------- 429
Chapter 19: Technology ---------------------------------------------------------------------------------------- 448
Chapter 20: Profit Maximization ----------------------------------------------------------------------------- 470
Chapter 21: Cost Minimization ------------------------------------------------------------------------------- 496
Chapter 22: Cost Curves ---------------------------------------------------------------------------------------- 536
Chapter 23: Firm Supply ---------------------------------------------------------------------------------------- 561
Chapter 24: Industry Supply ----------------------------------------------------------------------------------- 581
Chapter 25: Monopoly ------------------------------------------------------------------------------------------ 608
Chapter 26: Monopoly Behavior ----------------------------------------------------------------------------- 648
Chapter 27: Factor Markets ----------------------------------------------------------------------------------- 665
Chapter 28: Oligopoly ------------------------------------------------------------------------------------------- 677
Chapter 29: Game Theory -------------------------------------------------------------------------------------- 708
Chapter 30: Game Applications ------------------------------------------------------------------------------ 729
Chapter 31: Behavioral Economics -------------------------------------------------------------------------- 771
,Chapter 32: Exchange ------------------------------------------------------------------------------------------- 789
Chapter 33: Production ----------------------------------------------------------------------------------------- 826
Chapter 34: Welfare --------------------------------------------------------------------------------------------- 850
Chapter 35: Externalities --------------------------------------------------------------------------------------- 864
Chapter 36: Information Technology ----------------------------------------------------------------------- 890
Chapter 37: Public Goods -------------------------------------------------------------------------------------- 902
Chapter 38: Information---------------------------------------------------------------------------------------- 916
,Chapter 2: Budget Constraint
Hal R. Varian: Intermediate Microeconomics: A Modern Approach Ninth Edition (9Th) Test Bank
TRUE/FALSE
1. If There Are Two Goods With Positive Prices And The Price Of One Good Is
Reduced, While Income And Other Prices Remain Constant, Then The Size Of The
Budget Set Is Reduced.
ANS: False
Dif: 1
2. If Good 1 Is Measured On The Horizontal Axis And Good 2 Is Measured On The
Vertical Axis And If The Price Of Good 1 Is P1 And The Price Of Good 2 Is P2, Then
The Slope Of The Budget Line Is −P2/P1.
ANS: False
Dif: 1
3. If All Prices Are Doubled And Money Income Is Left The Same, The Budget Set Does
Not Change Because Relative Prices Do Not Change.
ANS: False
Dif: 1
,4. If There Are Two Goods And If One Good Has A Negative Price And The Other Has
A Positive Price, Then The Slope Of The Budget Line Will Be Positive.
ANS: True
Dif: 1
5. If All Prices Double And Income Triples, Then The Budget Line Will Become
Steeper.
ANS: False
Dif: 1
6. If Good 1 Is On The Horizontal Axis And Good 2 Is On The Vertical Axis, Then An
Increase In The Price Of Good 1 Will Not Change The Horizontal Intercept Of The
Budget Line.
ANS: False
Dif: 1
7. If There Are Two Goods And The Prices Of Both Goods Rise, Then The Budget Line
Must Become Steeper.
ANS: False
Dif: 1
8. There Are Two Goods. You Know How Much Of Good 1 A Consumer Can Afford If
She Spends All Of Her Income On Good 1. If You Knew The Ratio Of The Prices Of
, The Two Goods, Then You Could Draw The Consumer’s Budget Line Without Any
More Information.
ANS: True
Dif: 1
9. A Consumer Prefers More To Less Of Every Good. Her Income Rises, And The Price
Of One Of The Goods Falls While Other Prices Stay Constant. These Changes Must
Have Made Her Better Off.
ANS: True
Dif: 1
10. There Are 3 Goods. The Price Of Good 1 Is −1, The Price Of Good 2 Is 1, And The
Price Of Good 3 Is 2. It Is Physically Possible For A Consumer To Consume Any
Commodity Bundle With Nonnegative Amounts Of Each Good. A Consumer Who Has
An Income Of 10 Could Afford To Consume Some Commodity Bundles That Include 5
Units Of Good 1 And 6 Units Of Good 2.
ANS: True
Dif: 2
11. A Decrease In Income Pivots The Budget Line Around The Bundle Initially
Consumed.
ANS: False
Dif: 1
