Question

True or False 1. Reflexivity, completeness, and transitivity axiom ensure that a consumer can compare one...

True or False

1. Reflexivity, completeness, and transitivity axiom ensure that a consumer can compare one good with another.

2.More goods is preferable to less goods axiom of preferences implies that indifference curve should be downward sloping.

3. In comparing any two bundles of goods, the consumer prefers the one located on the indifference curve that is farthest from the origin.

4. A thick indifference curve violates transitivity axiom of preferences.

5. For a downward slopping linear demand curve, the elasticity of demand must be different at various points.

6. An indifference curve is a curve of combinations of goods that give the same utility.

Homework Answers

Answer #1

1. True. Consumers are supposed to be able to prefer one good over another due to these axioms

2. True. So long as there's a fixed amount of utility that a consumer wants, they will substitute one good for another, resulting in a downward sloping indifference curve

3. True. The farther an indifference curve is from the origin, the higher is the amount of utility it implies for the consumer

4. True

5. False. A linear demand curve would imply same elasticity of demand at different points

6. True.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Are the following statement true or false? (a) If consumer likes Bundle a at least as...
Are the following statement true or false? (a) If consumer likes Bundle a at least as much as Bundle b, then consumer is weakly prefer a to b. (b) An indifference curve is the set of all bundles of goods that a consumer views as being equally desirable. (c) The demand curve is always sloping either downward or upward. (d) Consumer well-being from a good is the benefits a consumer gets from consuming that good in excess cost. (e) Monopoly...
Are the following statement true or false? (a) If consumer likes Bundle a at least as...
Are the following statement true or false? (a) If consumer likes Bundle a at least as much as Bundle b, then consumer is weakly prefer a to b. (b) An indifference curve is the set of all bundles of goods that a consumer views as being equally desirable. (c) The demand curve is always sloping either downward or upward. (d) Consumer well-being from a good is the benefits a consumer gets from consuming that good in excess cost. (e) Monopoly...
1. The marginal cost curve must cut the average variable cost and average total cost at...
1. The marginal cost curve must cut the average variable cost and average total cost at their lowest point a. True b. False 2. Which of the following is not true of indifference curves? a. They could intersect b. They are convex to the origin c. They are downward sloping d. All of the above 3. A consumer that does not spend all of her/his income a.Would be at a point outside of the budget constraint b. Would be at...
1. The lump sum principle says...? All taxes make a consumer equally unhappy A tax on...
1. The lump sum principle says...? All taxes make a consumer equally unhappy A tax on one good make a consumer happier than an equivalent revenue lump sum tax. A tax on one good make a consumer less happy than an equivalent revenue lump sum tax. Tax revenues should only be used as a lump sum, not split up among many projects A tax on one good should be kept small. 2. For normal goods…? A change in income causes...
11.    Imposing an excise tax in a market for a good that exhibits inelastic demand    ...
11.    Imposing an excise tax in a market for a good that exhibits inelastic demand     a.    reduces market supply and generates tax revenue     b.    increases market supply and generates tax revenue     c.    reduces market demand and fails to generate tax revenue     d.    reduces market supply and fails to generate tax revenue 12.    All the combinations of two products that will yield the same total utility to a consumer are reflected in     a.    the budget line...
Question 1 If you are trying to make yourself as happy as you can be given...
Question 1 If you are trying to make yourself as happy as you can be given the constraints that you face, you are effectively: Select one: a. trying to find the intersection point between two budget constraints. b. trying to find the point on the budget constraint that is on the highest indifference curve. c. trying to find the point where the budget constraint and an indifference curve intersect. d. trying to find the point on an indifference curve that...
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer....
Total utility can be objectively measured in numbers that indicate usefulness or benefit to the consumer. ____ 2. Consumers should purchase quantities of a good to the point where MU > P. ____ 3. Voluntary exchange requires that there must be mutual gain. ____ 4. Points along a budget line represent the maximum combinations of two commodities that a consumer can afford. ____ 5. The budget line represents a consumer's preferences for a commodity. ____ 6. A change in consumer...
Question 1 The line that connects the combinations of goods that leave you indifferent is called:...
Question 1 The line that connects the combinations of goods that leave you indifferent is called: Select one: a. the indifference curve. b. the budget constraint. c. the indifference constraint. d. the indifference line. Question 2 An increase in income will cause: Select one: a. the budget constraint to become flatter, so that it includes more combinations. b. the budget constraint to become steeper, so that it includes more combinations. c. a parallel shift inward of the budget constraint. d....