1 Intermediate Microeconomics
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+
,2 Intermediate Microeconomics
chapter 2: budget constraint ------------------------------------------------------------------------------------- 4
chapter 3: preferences ------------------------------------------------------------------------------------------- 34
chapter 4: utility --------------------------------------------------------------------------------------------------- 56
chapter 5: choice -------------------------------------------------------------------------------------------------- 82
chapter 6: demand ----------------------------------------------------------------------------------------------- 112
chapter 7: revealed preference ------------------------------------------------------------------------------- 147
chapter 8: slutsky equation ------------------------------------------------------------------------------------ 177
chapter 9: buying and selling---------------------------------------------------------------------------------- 200
chapter 10: intertemporal choice ---------------------------------------------------------------------------- 236
chapter 11: asset markets -------------------------------------------------------------------------------------- 263
chapter 12: uncertainty ----------------------------------------------------------------------------------------- 287
chapter 13: risky assets ----------------------------------------------------------------------------------------- 309
chapter 14: consumer’s surplus ------------------------------------------------------------------------------- 319
chapter 15: market demand ----------------------------------------------------------------------------------- 337
chapter 16: equilibrium ----------------------------------------------------------------------------------------- 380
chapter 17: measurement -------------------------------------------------------------------------------------- 404
chapter 18: auctions --------------------------------------------------------------------------------------------- 415
chapter 19: technology ----------------------------------------------------------------------------------------- 434
chapter 20: profit maximization ------------------------------------------------------------------------------ 455
chapter 21: cost minimization--------------------------------------------------------------------------------- 481
chapter 22: cost curves------------------------------------------------------------------------------------------ 519
chapter 23: firm supply ----------------------------------------------------------------------------------------- 544
chapter 24: industry supply ------------------------------------------------------------------------------------ 563
chapter 25: monopoly ------------------------------------------------------------------------------------------- 589
chapter 26: monopoly behavior ------------------------------------------------------------------------------ 628
chapter 27: factor markets------------------------------------------------------------------------------------- 645
chapter 28: oligopoly -------------------------------------------------------------------------------------------- 656
chapter 29: game theory --------------------------------------------------------------------------------------- 686
chapter 30: game applications -------------------------------------------------------------------------------- 707
chapter 31: behavioral economics --------------------------------------------------------------------------- 748
,3 Intermediate Microeconomics
chapter 32: exchange ------------------------------------------------------------------------------------------- 765
chapter 33: production ------------------------------------------------------------------------------------------ 800
chapter 34: welfare ---------------------------------------------------------------------------------------------- 823
chapter 35: externalities---------------------------------------------------------------------------------------- 836
chapter 36: information technology ------------------------------------------------------------------------- 862
chapter 37: public goods --------------------------------------------------------------------------------------- 873
chapter 38: information ---------------------------------------------------------------------------------------- 886
,4 Intermediate Microeconomics
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.
,5 Intermediate Microeconomics
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
, 6 Intermediate Microeconomics
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
multiple choice
1. if she spends all of her income on breadfruits and melons, natalie can just afford 9
breadfruits and 10 melons per day. she could also use her entire budget to buy 3
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+
,2 Intermediate Microeconomics
chapter 2: budget constraint ------------------------------------------------------------------------------------- 4
chapter 3: preferences ------------------------------------------------------------------------------------------- 34
chapter 4: utility --------------------------------------------------------------------------------------------------- 56
chapter 5: choice -------------------------------------------------------------------------------------------------- 82
chapter 6: demand ----------------------------------------------------------------------------------------------- 112
chapter 7: revealed preference ------------------------------------------------------------------------------- 147
chapter 8: slutsky equation ------------------------------------------------------------------------------------ 177
chapter 9: buying and selling---------------------------------------------------------------------------------- 200
chapter 10: intertemporal choice ---------------------------------------------------------------------------- 236
chapter 11: asset markets -------------------------------------------------------------------------------------- 263
chapter 12: uncertainty ----------------------------------------------------------------------------------------- 287
chapter 13: risky assets ----------------------------------------------------------------------------------------- 309
chapter 14: consumer’s surplus ------------------------------------------------------------------------------- 319
chapter 15: market demand ----------------------------------------------------------------------------------- 337
chapter 16: equilibrium ----------------------------------------------------------------------------------------- 380
chapter 17: measurement -------------------------------------------------------------------------------------- 404
chapter 18: auctions --------------------------------------------------------------------------------------------- 415
chapter 19: technology ----------------------------------------------------------------------------------------- 434
chapter 20: profit maximization ------------------------------------------------------------------------------ 455
chapter 21: cost minimization--------------------------------------------------------------------------------- 481
chapter 22: cost curves------------------------------------------------------------------------------------------ 519
chapter 23: firm supply ----------------------------------------------------------------------------------------- 544
chapter 24: industry supply ------------------------------------------------------------------------------------ 563
chapter 25: monopoly ------------------------------------------------------------------------------------------- 589
chapter 26: monopoly behavior ------------------------------------------------------------------------------ 628
chapter 27: factor markets------------------------------------------------------------------------------------- 645
chapter 28: oligopoly -------------------------------------------------------------------------------------------- 656
chapter 29: game theory --------------------------------------------------------------------------------------- 686
chapter 30: game applications -------------------------------------------------------------------------------- 707
chapter 31: behavioral economics --------------------------------------------------------------------------- 748
,3 Intermediate Microeconomics
chapter 32: exchange ------------------------------------------------------------------------------------------- 765
chapter 33: production ------------------------------------------------------------------------------------------ 800
chapter 34: welfare ---------------------------------------------------------------------------------------------- 823
chapter 35: externalities---------------------------------------------------------------------------------------- 836
chapter 36: information technology ------------------------------------------------------------------------- 862
chapter 37: public goods --------------------------------------------------------------------------------------- 873
chapter 38: information ---------------------------------------------------------------------------------------- 886
,4 Intermediate Microeconomics
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.
,5 Intermediate Microeconomics
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
, 6 Intermediate Microeconomics
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
multiple choice
1. if she spends all of her income on breadfruits and melons, natalie can just afford 9
breadfruits and 10 melons per day. she could also use her entire budget to buy 3
