A consumer's budget line will shift to the left in a parallel manner if:
a. the price of the good on the X-axis increases.
b. the price of the good on the Y-axis increases.
c. the consumer's income increases.
d. the consumer's income decreases.
QUESTION 2Which of the following statements contradicts an upward-sloping market-supply curve?
a. All people have backward-bending individual supply curves.
b. Leisure is more enjoyable than work.
c. The elasticity of labor supply is larger than the elasticity of labor demand.
d. To work more means to enjoy less leisure.
e. The opportunity cost of leisure decreases with an increase in wage rate.
QUESTION 3In the opinion of many consumers, there are few, if any, substitutes for the popular search engine Google. If Google were to charge consumers for its services, it would face:
a. a relatively inelastic demand curve.
b. a relatively elastic demand curve.
c. a negative income elasticity of demand.
d. a positive cross elasticity of demand.
e. a perfectly elastic demand curve.
QUESTION 4A consumer's budget line will shift to the right in a parallel manner if:
a. the price of the good on the X-axis decreases.
b. the price of the good on the Y-axis increases.
c. the consumer's income increases.
d. the consumer's income decreases.
QUESTION 5Which of the following is a reason that some economists do not agree with the concept of a labor-leisure tradeoff?
a. Wages are paid in dollars and leisure is measured in time, hence there is no way to compare the two.
b. On a day-to-day basis, most jobs do not have the flexibility to allow people to weigh the benefits and costs to determine how much they should work that day.
c. In the long-run, the supply of labor hours is perfectly inelastic.
d. An increase in the wage rate always leads to an increase in the supply of labor hours, therefore the workers do not think of choosing leisure over labor.
e. Some people do not work at all, so there is no labor-leisure tradeoff for those individuals.
QUESTION 6Demand for a good becomes more elastic as:
a. the number of substitutes available declines.
b. the time period under consideration becomes shorter.
c. a good makes up a larger percentage of a consumer's budget.
d. a good makes up a smaller percentage of a consumer's budget.
e. the producer has more time to respond to price changes.
Quick Reply
