The Theory of Consumer Choice
True
False
True
False
True
False
True
False
True
False
An indifference curve
The marginal rate of substitution
The budget constraint
The consumption limit
5
10
2
1/2
The trade-off rate
The marginal rate of substitution
The marginal rate of trade-off
The marginal rate of indifference
Indifference curves are downward sloping
Indifference curves do not cross each other
Higher indifference curves are preferred to lower ones
Indifference curves are bowed outward
The consumer reaches the highest indifference curve subject to remaining on the budget constraint
The consumer has reached the highest indifference curve
The two highest indifference curves cross
The budget constraint crosses the indifference curve
The indifference curve is tangent to the budget constraint
The slope of the indifference curve equals the slope of the budget constraint
The relative prices of the two goods equals the marginal rate of substitution
All of the above are true
None of the above are true
Rises
Falls
Stays the same
Could rise or fall depending on the relative prices of the two goods
An inferior good
A normal good
A substitute good
A complementary good
An inferior good
A normal good
A substitute good
A complementary good
An inferior good
A normal good
A substitute good
A complementary good
Shift outward in a parallel fashion
Shift inward in a parallel fashion
Stay the same
Rotate inward
Rotate outward
The consumer has reached his highest indifference curves subject to his budget constraint
The marginal utility per dollar spent on each good is the same
The consumer is indifferent between any two points on his budget constraint
The marginal rate of substitution between goods is equal to the ratio of the prices between goods
The consumer's indifference curve is tangent to his budget constraint
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