Test Bank Complete_
Intermediate Microeconomics: A Modern Approach Tenth Edition (10th) 2024,
By Hal R. Varian, Marc Melitz
All Chapters 1-38| Latest Edition With Verified Answers| Rated A+
,chapter 2: budget constraint ------------------------------------------------------------------------------------- 4
chapter 3: preferences ------------------------------------------------------------------------------------------- 26
chapter 4: utility --------------------------------------------------------------------------------------------------- 43
chapter 5: choice -------------------------------------------------------------------------------------------------- 61
chapter 6: demand ------------------------------------------------------------------------------------------------ 75
chapter 7: revealed preference -------------------------------------------------------------------------------- 92
chapter 8: slutsky equation ------------------------------------------------------------------------------------ 108
chapter 9: buying and selling---------------------------------------------------------------------------------- 124
chapter 10: intertemporal choice ---------------------------------------------------------------------------- 140
chapter 11: asset markets -------------------------------------------------------------------------------------- 156
chapter 12: uncertainty ----------------------------------------------------------------------------------------- 171
chapter 13: risky assets ----------------------------------------------------------------------------------------- 188
chapter 14: consumer’s surplus ------------------------------------------------------------------------------- 195
chapter 15: market demand ----------------------------------------------------------------------------------- 211
chapter 16: equilibrium ----------------------------------------------------------------------------------------- 224
chapter 17: measurement -------------------------------------------------------------------------------------- 235
chapter 18: auctions --------------------------------------------------------------------------------------------- 245
chapter 19: technology ----------------------------------------------------------------------------------------- 265
chapter 20: profit maximization ------------------------------------------------------------------------------ 278
chapter 21: cost minimization--------------------------------------------------------------------------------- 288
chapter 22: cost curves------------------------------------------------------------------------------------------ 302
chapter 23: firm supply ----------------------------------------------------------------------------------------- 315
chapter 24: industry supply ------------------------------------------------------------------------------------ 322
chapter 25: monopoly ------------------------------------------------------------------------------------------- 340
chapter 26: monopoly behavior ------------------------------------------------------------------------------ 359
chapter 27: factor markets------------------------------------------------------------------------------------- 370
chapter 28: oligopoly -------------------------------------------------------------------------------------------- 382
chapter 29: game theory --------------------------------------------------------------------------------------- 399
chapter 30: game applications -------------------------------------------------------------------------------- 417
,chapter 31: behavioral economics --------------------------------------------------------------------------- 437
chapter 32: exchange ------------------------------------------------------------------------------------------- 447
chapter 33: production ------------------------------------------------------------------------------------------ 465
chapter 34: welfare ---------------------------------------------------------------------------------------------- 484
chapter 35: externalities---------------------------------------------------------------------------------------- 499
chapter 36: public goods --------------------------------------------------------------------------------------- 516
chapter 37: asymmetric information ------------------------------------------------------------------------ 530
chapter 38: information technology ------------------------------------------------------------------------- 545
,chapter 2: budget constraint
hal r. varian: intermediate microeconomics: a modern approach tenth edition, (2024) test bank
multiple choice
1. in problem 1, if you have an income of $18 to spend, if commodity 1 cost $3 per unit,
and if commodity 2 costs $9 per unit, then the equation for your budget line can be
written
a. x1/3 x2/9 18.
b. (x1 x2)/12 18.
c. x1 3x2 6.
d. 4x1 10x2 19.
e. 12(x1 x2) 18.
ans: c
the budget equation is derived by dividing income by the price per unit of each good:
3x1+9x2=18⇒x1+3x2=63x_1 + 9x_2 = 18 \rightarrow x_1 + 3x_2 = 63x1+9x2=18⇒x1
+3x2=6
this shows the combinations of x₁ and x₂ that can be purchased within the $18 budget.
2. in problem 1, if you have an income of $18 to spend, if commodity 1 costs $3 per unit,
and if commodity 2 costs $9 per unit, then the equation for your budget line can be
written
a. x1/3 x2/9 18.
b. 4x1 10x2 19.
,c. x1 3x2 6.
d. (x1 x2)/12 18.
e. 12(x1 x2) 18.
ans: c
same logic as above: 3x1+9x2=18⇒x1+3x2=63x_1 + 9x_2 = 18 \rightarrow x_1 + 3x_2
= 63x1+9x2=18⇒x1+3x2=6
this represents the correct budget line based on prices and income.
3. in problem 1, if you have an income of $30 to spend, if commodity 1 costs $5 per unit,
and if commodity 2 costs $10 per unit, then the equation for your budget line can be
written
a. 6x1 11x2 31.
b. (x1 x2)/15 30.
c. x1 2x2 6.
d. x1/5 x2/10 30.
e. 15(x1 x2) 30.
ans: c
5x1+10x2=30
divide all terms by 5:
x1+2x2=6x_1 + 2x_2 = 6x1+2x2=6
this is the correct budget line equation.
, 4. in problem 1, if you have an income of $16 to spend, if commodity 1 costs $2 per unit,
and if commodity 2 costs $4 per unit, then the equation for your budget line can be
written
a. x1 2x2 8.
b. 3x1 5x2 17.
c. (x1 x2)/6 16
d. x1/2 x2/4 16.
e. 6(x1 x2) 16.
ans: a
start from 2x1+4x2=162x_1 + 4x_2 = 162x1+4x2=16.
divide by 2:
x1+2x2=8x_1 + 2x_2 = 8x1+2x2=8
correct representation of budget constraint.
5. in problem 1, if you have an income of $80 to spend, if commodity 1 costs $4 per unit,
and if commodity 2 costs $16 per unit, then the equation for your budget line can be
written
a. x1 4x2 20.
b. (x1 x2)/20 80.
c. x1/4 x2/16 80.
d. 5x1 17x2 81.
e. 20(x1 x2) 80.
Intermediate Microeconomics: A Modern Approach Tenth Edition (10th) 2024,
By Hal R. Varian, Marc Melitz
All Chapters 1-38| Latest Edition With Verified Answers| Rated A+
,chapter 2: budget constraint ------------------------------------------------------------------------------------- 4
chapter 3: preferences ------------------------------------------------------------------------------------------- 26
chapter 4: utility --------------------------------------------------------------------------------------------------- 43
chapter 5: choice -------------------------------------------------------------------------------------------------- 61
chapter 6: demand ------------------------------------------------------------------------------------------------ 75
chapter 7: revealed preference -------------------------------------------------------------------------------- 92
chapter 8: slutsky equation ------------------------------------------------------------------------------------ 108
chapter 9: buying and selling---------------------------------------------------------------------------------- 124
chapter 10: intertemporal choice ---------------------------------------------------------------------------- 140
chapter 11: asset markets -------------------------------------------------------------------------------------- 156
chapter 12: uncertainty ----------------------------------------------------------------------------------------- 171
chapter 13: risky assets ----------------------------------------------------------------------------------------- 188
chapter 14: consumer’s surplus ------------------------------------------------------------------------------- 195
chapter 15: market demand ----------------------------------------------------------------------------------- 211
chapter 16: equilibrium ----------------------------------------------------------------------------------------- 224
chapter 17: measurement -------------------------------------------------------------------------------------- 235
chapter 18: auctions --------------------------------------------------------------------------------------------- 245
chapter 19: technology ----------------------------------------------------------------------------------------- 265
chapter 20: profit maximization ------------------------------------------------------------------------------ 278
chapter 21: cost minimization--------------------------------------------------------------------------------- 288
chapter 22: cost curves------------------------------------------------------------------------------------------ 302
chapter 23: firm supply ----------------------------------------------------------------------------------------- 315
chapter 24: industry supply ------------------------------------------------------------------------------------ 322
chapter 25: monopoly ------------------------------------------------------------------------------------------- 340
chapter 26: monopoly behavior ------------------------------------------------------------------------------ 359
chapter 27: factor markets------------------------------------------------------------------------------------- 370
chapter 28: oligopoly -------------------------------------------------------------------------------------------- 382
chapter 29: game theory --------------------------------------------------------------------------------------- 399
chapter 30: game applications -------------------------------------------------------------------------------- 417
,chapter 31: behavioral economics --------------------------------------------------------------------------- 437
chapter 32: exchange ------------------------------------------------------------------------------------------- 447
chapter 33: production ------------------------------------------------------------------------------------------ 465
chapter 34: welfare ---------------------------------------------------------------------------------------------- 484
chapter 35: externalities---------------------------------------------------------------------------------------- 499
chapter 36: public goods --------------------------------------------------------------------------------------- 516
chapter 37: asymmetric information ------------------------------------------------------------------------ 530
chapter 38: information technology ------------------------------------------------------------------------- 545
,chapter 2: budget constraint
hal r. varian: intermediate microeconomics: a modern approach tenth edition, (2024) test bank
multiple choice
1. in problem 1, if you have an income of $18 to spend, if commodity 1 cost $3 per unit,
and if commodity 2 costs $9 per unit, then the equation for your budget line can be
written
a. x1/3 x2/9 18.
b. (x1 x2)/12 18.
c. x1 3x2 6.
d. 4x1 10x2 19.
e. 12(x1 x2) 18.
ans: c
the budget equation is derived by dividing income by the price per unit of each good:
3x1+9x2=18⇒x1+3x2=63x_1 + 9x_2 = 18 \rightarrow x_1 + 3x_2 = 63x1+9x2=18⇒x1
+3x2=6
this shows the combinations of x₁ and x₂ that can be purchased within the $18 budget.
2. in problem 1, if you have an income of $18 to spend, if commodity 1 costs $3 per unit,
and if commodity 2 costs $9 per unit, then the equation for your budget line can be
written
a. x1/3 x2/9 18.
b. 4x1 10x2 19.
,c. x1 3x2 6.
d. (x1 x2)/12 18.
e. 12(x1 x2) 18.
ans: c
same logic as above: 3x1+9x2=18⇒x1+3x2=63x_1 + 9x_2 = 18 \rightarrow x_1 + 3x_2
= 63x1+9x2=18⇒x1+3x2=6
this represents the correct budget line based on prices and income.
3. in problem 1, if you have an income of $30 to spend, if commodity 1 costs $5 per unit,
and if commodity 2 costs $10 per unit, then the equation for your budget line can be
written
a. 6x1 11x2 31.
b. (x1 x2)/15 30.
c. x1 2x2 6.
d. x1/5 x2/10 30.
e. 15(x1 x2) 30.
ans: c
5x1+10x2=30
divide all terms by 5:
x1+2x2=6x_1 + 2x_2 = 6x1+2x2=6
this is the correct budget line equation.
, 4. in problem 1, if you have an income of $16 to spend, if commodity 1 costs $2 per unit,
and if commodity 2 costs $4 per unit, then the equation for your budget line can be
written
a. x1 2x2 8.
b. 3x1 5x2 17.
c. (x1 x2)/6 16
d. x1/2 x2/4 16.
e. 6(x1 x2) 16.
ans: a
start from 2x1+4x2=162x_1 + 4x_2 = 162x1+4x2=16.
divide by 2:
x1+2x2=8x_1 + 2x_2 = 8x1+2x2=8
correct representation of budget constraint.
5. in problem 1, if you have an income of $80 to spend, if commodity 1 costs $4 per unit,
and if commodity 2 costs $16 per unit, then the equation for your budget line can be
written
a. x1 4x2 20.
b. (x1 x2)/20 80.
c. x1/4 x2/16 80.
d. 5x1 17x2 81.
e. 20(x1 x2) 80.
