经济学原理对应练习 21

Chapter 21The Theory of Consumer ChoiceMultiple Choice1. The theory of consumer choice provides the foundation for understandinga. the structure of a firm.b. the profitability of a firm.c. a firm's product demand.d. a firm's product supply.ANS: C PTS: 1 DIF: 1 REF: 21-0TOP: Consumer choice MSC: Definitional2. The theory of consumer choice examinesa. the determination of output in competitive markets.b. the tradeoffs inherent in decisions made by consumers.c. how consumers select inputs into manufacturing production processes.d. the determination of prices in competitive markets.ANS: B PTS: 1 DIF: 1 REF: 21-0TOP: Consumer choice MSC: Definitional3. Consider two goods, books and hamburgers. The slope of the consumer's budget constraint is measured by thea. consumer's income divided by the price of hamburgers.b. relative price of books and hamburgers.c. consumer's marginal rate of substitution.d. number of books purchased divided by the number of hamburgers purchased.ANS: B PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Interpretive4. If a consumer's income decreases, the budget constraint for CDs and DVDs willa. shift outward, parallel to the original budget constraint.b. shift inward, parallel to the original budget constraint.c. rotate outward along the CD axis because we can afford more CDs.d. rotate outward along the DVD axis because we can afford more DVDs.ANS: B PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Analytical5. If the relative price of a concert ticket is 3 times the price of a meal at a good restaurant, then the opportunity cost ofa concert ticket can be measured by thea. slope of the budget constraint.b. slope of an indifference curve.c. marginal rate of substitution.d. income effect.ANS: A PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Analytical6. When the price of a shirt falls, thea. quantity of shirts demanded falls.b. quantity of shirts demanded rises.c. quantity of shirts supplied rises.d. demand for shirts falls.ANS: B PTS: 1 DIF: 1 REF: 21-1TOP: Demand MSC: Analytical898Chapter 21/The Theory of Consumer Choice ❖8997. A budget constrainta. shows the prices that a consumer chooses to pay for products he consumes.b. shows the purchases made by consumers.c. shows the consumption bundles that a consumer can afford.d. represents the consumption bundles that give a consumer equal satisfaction.ANS: C PTS: 1 DIF: 1 REF: 21-1TOP: Budget constraint MSC: Definitional8. Assume that a college student spends her income on books and pizza. The price of a pizza is $8.00, and the price of abook is $15. If she has $100 of income, she could choose to consumea. 8 pizzas and 4 books.b. 4 pizzas and 5 books.c. 9 pizzas and 3 books.d. 4 pizzas and 3 books.ANS: D PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Applicative9. Assume that a college student spends her income on mac-n-cheese and CDs. The price of one box of mac-n-cheese is$1.00, and the price of one CD is $12.00. If she has $100 of income, she could choose to consumea. 15 boxes of mac-n-cheese and 6 CDs.b. 20 boxes of mac-n-cheese and 7 CDs.c. 10 boxes of mac-n-cheese and 8 CDs.d. 30 boxes of mac-n-cheese and 6 CDs.ANS: A PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Applicative10. A consumer that doesn't spend all of her incomea. would be at a point outside of her budget constraint.b. would be at a point inside her budget constraint.c. must not be consuming positive quantities of all goods.d. must be consuming at a point where her budget constraint touches one of the axes.ANS: B PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Interpretive11. An increase in income will cause a consumer's budget constraint toa. shift outward, parallel to its initial position.b. shift inward, parallel to its initial position.c. pivot around the "Y" axis.d. pivot around the "X" axis.ANS: A PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: AnalyticalFigure 21-1900 ❖Chapter 21/The Theory of Consumer Choice12. Refer to Figure 21-1. Which point in the figure showing a consumer’s budget constraint represents the consumer'sincome divided by the price of a CD?a. Point Ab. Point Cc. Point Dd. Point EANS: C PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Applicative13. Refer to Figure 21-1. A consumer that chooses to spend all of her income could be at which point(s) on the budgetconstraint?a. Ab. Ec. B, C, or Dd. A, B, C, or DANS: C PTS: 1 DIF: 1 REF: 21-1TOP: Budget constraint MSC: Applicative14. Refer to Figure 21-1. All of the points identified in the figure represent possible consumption options with theexception ofa. Ab. Ec. A and Ed. None. All points are possible consumption options.ANS: B PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: ApplicativeFigure 21-2Chapter 21/The Theory of Consumer Choice ❖90115. Refer to Figure 21-2. Which of the graphs in the figure reflects a decrease in the price of good X only?a. graph (a)b. graph (b)c. graph (c)d. graph (d)ANS: B PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Analytical16. Refer to Figure 21-2. Which of the graphs in the figure reflects an increase in the price of good Y only?a. graph (a)b. graph (b)c. graph (c)d. graph (d)ANS: C PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Analytical17. Refer to Figure 21-2. Which of the graphs in the figure could reflect a decrease in the prices of both goods?a. graph (a)b. graph (b)c. graph (c)d. graph (d)ANS: D PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Analytical18. The slope of the budget constraint is determined by thea. relative price of the goods measured on the axes.b. relative price of the goods measured on the axes and the consum er’s income.c. endowment of productive resources.d. preferences of the consumer.ANS: A PTS: 1 DIF: 1 REF: 21-1TOP: Budget constraint MSC: Definitional19. The slope of the budget constraint is all of the following excepta. the relative price of two goods.b. the rate at which a consumer can trade one good for another.c. the marginal rate of substitution.d. constant.ANS: C PTS: 1 DIF: 1 REF: 21-1TOP: Budget constraint MSC: DefinitionalFigure 21-3902 ❖Chapter 21/The Theory of Consumer Choice20. Refer to Figure 21-3. In graph (a), if income is equal to $120, the price of good y isa. $1b. $2c. $3d. $4ANS: C PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Applicative21. Refer to Figure 21-3. In graph (a), what is the price of good y relative to good x (i.e., P y/P x)?a. 1/3b. 1/4c. 3d. 4ANS: B PTS: 1 DIF: 3 REF: 21-1TOP: Budget constraint MSC: Applicative22. Refer to Figure 21-3. In graph (b), what is the price of good x relative to good y (i.e., P x/P y)?a. 2/7b. 3/6c. 7/2d. 7ANS: A PTS: 1 DIF: 3 REF: 21-1TOP: Budget constraint MSC: Applicative23. Refer to Figure 21-3. Assume that a consumer faces both budget constraints in graph (a) and graph (b) on twodifferent occasions. If her income has remained constant, what has happened to prices?a. The price of X in graph (a) is higher than the price of X in graph (b).b. The price of Y in graph (a) is higher than the price of Y in graph (b).c. The prices of both X and Y are lower in graph (a).d. None of the above are true.ANS: A PTS: 1 DIF: 3 REF: 21-1TOP: Budget constraint MSC: Analytical24. Suppose a consumer spends her income on two goods: music CDs and DVDs. If the consumer has $200 to allocate tothese two goods, the price of a CD is $10, and the price of a DVD is $20, what is the maximum number of CDs the consumer can purchase?a. 10b. 20c. 40d. 50ANS: B PTS: 1 DIF: 1 REF: 21-1TOP: Budget constraint MSC: Applicative25. Suppose a consumer spends her income on two goods: music CDs and DVDs. If the price of a CD is $8, the price ofa DVD is $20, and we graph the budget constraint by placing the quantity of CDs purchased on the horizontal axis,what is the slope of the budget constraint?a. -5.0b. -2.5c. -0.4d. The slope of the budget constraint cannot be determined without knowing the income the consumer has availableto spend on the two goods.ANS: C PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: ApplicativeChapter 21/The Theory of Consumer Choice ❖903 26. Suppose a consumer is currently spending all of her available income on two goods: music CDs and DVDs. If theprice of a CD is $9, the price of a DVD is $18, and she is currently consuming 10 CDs and 5 DVDs, what is the consumer's income?a. $90b. $180c. $270d. $360ANS: B PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Applicative27. A consumer is currently spending all of her available income on two goods: music CDs and DVDs. At her currentconsumption bundle she is spending twice as much on CDs as she is on DVDs. If the consumer has $120 of income and is consuming 10 CDs and 2 DVDs, what is the price of a CD?a. $4b. $8c. $12d. $20ANS: B PTS: 1 DIF: 3 REF: 21-1TOP: Budget constraint MSC: Analytical28. The following diagram shows a budget constraint for a particular consumer.If the price of x is $10, what is the price of y?a. $15b. $25c. $35d. $70ANS: C PTS: 1 DIF: 3 REF: 21-1TOP: Budget constraint MSC: Analytical29. Budget constraints exist for consumers becausea. their utility from consuming goods eventually reaches a maximum level.b. even with unlimited incomes they have to pay for each good they consume.c. they have to pay for goods and they have limited incomes.d. prices and incomes are inversely related.ANS: C PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Interpretive904 ❖Chapter 21/The Theory of Consumer Choice30. A family on a trip budgets $800 for meals and gasoline. If the price of a meal for the family is $50, how many mealscan the family buy if they do not buy any gasoline?a. 8b. 16c. 24d. 32ANS: B PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Applicative31. A family on a trip budgets $800 for meals and hotel accommodations. Suppose the price of a meal is $40. In addition,suppose the family could afford a total of 8 nights in a hotel if they don’t buy any meals. How many meals could the family afford if they gave up two nights in the hotel?a. 1b. 2c. 5d. 8ANS: C PTS: 1 DIF: 3 REF: 21-1TOP: Budget constraint MSC: Applicative32. If the price of bread is zero, the budget constraint between bread (on the vertical axis) and cheese (on the horizontalaxis) woulda. be vertical.b. coincide with the vertical axis.c. coincide with the horizontal axis.d. be horizontal.ANS: A PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: AnalyticalScenario 21-1Suppose the price of pizza is $10, the price of cola is $1, and the consumer’s income is $50. In addition, suppose the con sumer’s budget constraint measures pizza on the horizontal axis and cola on the vertical axis.33. Refer to Scenario 21-1. If the price of cola doubles to $2, then thea. budget constraint intersects the vertical axis at 25 colas.b. slope of the budget constraint rises to -2.c. budget constraint intersects the vertical axis at 100 colas.d. budget constraint shifts inward in a parallel fashion.ANS: A PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Applicative34. Refer to Scenario 21-1. If the consumer's income rises to $60, then the budget line for pizza and cola woulda. now intersect the horizontal axis at 6 pizzas and the vertical axis at 60 colas.b. not change.c. now intersect the horizontal axis at 4 pizzas and the vertical axis at 16 colas.d. rotate outward along the cola axis.ANS: A PTS: 1 DIF: 1 REF: 21-1TOP: Budget constraint MSC: Applicative35. An increase in a consumer's incomea. increases the slope of the consumer's budget constraint.b. has no effect on the slope of the consumer's budget constraint.c. decreases the slope of the consumer's budget constraint.d. has no effect on the consumer's budget constraint.ANS: B PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: AnalyticalChapter 21/The Theory of Consumer Choice ❖90536. A decrease in a consumer's incomea. increases the slope of the consumer's budget constraint.b. has no effect on the consumer's budget constraint.c. decreases the slope of the consumer's budget constraint.d. has no effect on the slope of the consumer's budget constraint.ANS: D PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Analytical37. The price of gin has risen from $7 to $9 per bottle, the price of cocktail onions has fallen from $6 to $5 per jar, andElizabeth's income has stayed fixed at $46 per week. Since the price changes, Elizabeth has been buying 4 bottles of gin and 2 jars of cocktail onions per week. At the original prices, 4 bottles of gin and 2 jars of cocktail onions would havea. exactly exhausted her income.b. cost more than her income.c. cost less than her income.d. could have maximized her satisfaction given her budget constraint.ANS: C PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Applicative38. The price of gin has risen from $7 to $9 per bottle, the price of cocktail onions has fallen from $6 to $5 per jar, andElizabeth's income has stayed fixed at $46 per week. If you put gin on the vertical axis and cocktail onions on the horizontal axis, then the budget constrainta. is steeper after the price changes.b. is flatter after the price changes.c. is the same after the price changes.d. shifts in parallel to the old budget constraint after the price changes.ANS: B PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Applicative39. Suppose the only two goods that Brett consumes are wine and cheese. When wine sells for $10 a bottle and cheesesell for $10 a pound, he buys 6 bottles of wine and 4 pounds of cheese — spending his entire income of $100. One day the price of wine falls to $5 a bottle and the price of cheese increases to $20 a pound, while his income does not change. The bundle of wine and cheese that he purchased at the old prices, now costs, at the new prices,a. the same amount.b. less than Brett's income.c. more than Brett's income.d. not enough information to answer the question.ANS: C PTS: 1 DIF: 1 REF: 21-1TOP: Budget constraint MSC: Applicative40. Suppose the only two goods that Brett consumes are wine and cheese. When wine sells for $10 a bottle and cheesesell for $10 a pound, he buys 6 bottles of wine and 4 pounds of cheese — spending his entire income of $100. One day the price of wine falls to $5 a bottle and the price of cheese increases to $20 a pound, while his income does not change. If you place wine on the vertical axis and cheese on the horizontal axis, thena. the slope of Brett's budget has not changed.b. the slope of Brett's budget constraint is flatter at the new prices.c. the slope of Brett's budget constraint is steeper at the new prices.d. Brett's budget constraint has shifted in parallel to the budget constraint with the old prices.ANS: C PTS: 1 DIF: 2 REF: 21-1TOP: Budget constraint MSC: Applicative41. Consider the indifference curve map for nickels and quarters. Assume nickels are on the vertical axis and quarters areon the horizontal axis. The indifference curves for nickels and quartersa. are straight lines with slope of -1/5b. are straight lines with a slope of -1.c. are straight lines with a slope of -5.d. are L shaped.ANS: C PTS: 1 DIF: 2 REF: 21-2TOP: Perfect substitutes MSC: Applicative906 ❖Chapter 21/The Theory of Consumer Choice42. All of the following are properties of indifference curves excepta. higher indifference curves are preferred to lower ones.b. indifference curves are downward sloping.c. indifference curves do not cross.d. indifference curves are bowed outward.ANS: D PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: Interpretive43. A consumer’s preferences for right shoes and left shoes can be represented by indifference curves that area. bowed out from the originb. bowed in towards the originc. straight linesd. right anglesANS: D PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: Interpretive44. A consumer’s preferences for $1 bills and $20 bills can be represented by indifference curves that area. bowed out from the originb. bowed in towards the originc. straight linesd. right anglesANS: C PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: Interpretive45. Economists represent a consumer's preferences usinga. demand curves.b. budget constraints.c. indifference curves.d. supply curves.ANS: C PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: Definitional46. If two bundles of goods give a consumer the same satisfaction, the consumer must bea. on her budget constraint.b. in a position of equilibrium.c. indifferent between the bundles.d. Both a and c are correct.ANS: C PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: InterpretiveFigure 21-4Chapter 21/The Theory of Consumer Choice ❖90747. Refer to Figure 21-4. Which of the following statements is correct?a. Point A is preferred equally to point E.b. Point A is preferred equally to point C.c. The bundle associated with point B contains more Ho-Ho's than that associated with point C.d. The bundles along indifference curve I1 are preferred to those along indifference curve I2.ANS: B PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: Analytical48. Refer to Figure 21-4. Which of the following statements is true?a. If a consumer moves from point C to point A, her loss of Ho-Ho's cannot be compensated for by an increase inTwinkies.b. Point E is preferred to all other points identified in the figure.c. Since more is preferred to less, point C may be preferred to point E in some circumstances for this consumer.d. Even though point E has more of both goods than point B, we could draw a different set of indifference curves inwhich point B is preferred to point E.ANS: B PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: Analytical49. Refer to Figure 21-4. Which of the following statements is not true for a consumer who moves from point B to pointC?a. At point C the consumer would be willing to give up a larger number of Ho-Hos in exchange for a Twinkie thanat point B.b. The marginal rate of substitution at points C and B are the same since the points lie on the same indifferencecurve.c. The consumer is willing to sacrifice Twinkies to obtain Ho-Ho's.d. The consumer receives the same level of satisfaction at points B and C.ANS: B PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: Analytical50. Refer to Figure 21-4. Which of the following statements is true for a consumer who moves from point A to point D?a. It is difficult to compare the level of consumer satisfaction between points D and A.b. The consumer is indifferent between point A and point D.c. The consumer is definitely worse off.d. The consumer is likely to place a higher relative value on Twinkies at point A than at point D.ANS: C PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: Analytical51. Refer to Figure 21-4. A person that chooses to consume bundle C is likely toa. receive higher total satisfaction at point C than at point A.b. spend more on bundle C than bundle A.c. receive higher marginal utility from Ho-Ho's than from Twinkies.d. receive higher marginal utility from Twinkies than from Ho-Ho's.ANS: D PTS: 1 DIF: 2 REF: 21-3TOP: Indifference Curve MSC: Analytical52. Indifference curves graphically representa. an income level sufficient to allow an individual to achieve a given level of satisfaction.b. the constraints faced by individuals.c. an individual's preferences.d. the relative price of commodities.ANS: C PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: Definitional53. The slope of an indifference curve isa. the rate of change of consumer's preferences.b. the marginal rate of preference.c. the marginal rate of substitution.d. always equal to the slope of the budget constraint.ANS: C PTS: 1 DIF: 1 REF: 21-2TOP: Marginal rate of substitution MSC: Definitional54. The rate at which a consumer is willing to exchange one good for another, and maintain a constant level ofsatisfaction, is called thea. relative expenditure ratio.b. value of marginal product.c. marginal rate of substitution.d. relative price ratio.ANS: C PTS: 1 DIF: 1 REF: 21-2TOP: Marginal rate of substitution MSC: Definitional55. If an indifference curve is bowed in toward the origin, the marginal rate of substitution isa. not likely to reflect the relative value of goods.b. likely to be constant for all bundles along the indifference curve.c. likely to be identical to the price ratio for each bundle along the indifference curve.d. different for each bundle along the indifference curve.ANS: D PTS: 1 DIF: 1 REF: 21-2TOP: Marginal rate of substitution MSC: Interpretive56. The marginal rate of substitution isa. the slope of a budget constraint.b. always constant.c. the slope of an indifference curve.d. the point at which the budget constraint and the indifference curve is tangent.ANS: C PTS: 1 DIF: 1 REF: 21-2TOP: Marginal rate of substitution MSC: Definitional57. The rate at which a consumer is willing to trade one good for another to maintain the same level of satisfaction isaffected bya. the prices of the products.b. the amount of each good the consumer is currently consuming.c. the consumer’s income.d. the marginal value product.ANS: B PTS: 1 DIF: 2 REF: 21-2TOP: Marginal rate of substitution MSC: Analytical58. As long as a consumer remains on the same indifference curvea. she is indifferent to all points which lie on any other indifference curve.b. her preferences will not affect the marginal rate of substitution.c. she is unable to decide which bundle of goods to choose.d. she is indifferent among the points on that curve.ANS: D PTS: 1 DIF: 1 REF: 21-2TOP: Marginal rate of substitution MSC: Interpretive59. A consumera. is equally satisfied with any indifference curve.b. prefers indifference curves with positive slopes.c. prefers higher indifference curves to lower indifference curves.d. is generally unable to place all consumption bundles on an indifference curve.ANS: C PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: Interpretive60. A consumer's preferences provide aa. ranking of the set of bundles that happen to fall on indifference curves.b. relative ranking of bundles that provide more of all goods.c. framework for evaluating market equilibriums.d. complete ranking of all possible consumption bundles.ANS: D PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: Definitional61. Which of the following is a property of indifference curves?a. Indifference curves cross to explain higher preferences.b. Indifference curves have positive slopes.c. Indifference curves are downward sloping and always linear.d. Indifference curves are bowed in toward the origin.ANS: D PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: Interpretive62. Higher indifference curves are preferred to lower ones as long as thea. marginal rate of substitution is diminishing.b. products in the bundle are "bads."c. products in the bundle are "goods."d. budget constraint does not shift.ANS: C PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: Interpretive63. Indifference curves that cross would suggest thata. the consumer does not prefer more to less.b. the consumer is likely to prefer a redistribution of income from rich to poor.c. different individuals have different preferences for the same goods.d. the marginal rate of substitution is the same for both indifference curves.ANS: A PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: Analytical64. When indifference curves are bowed in toward the origin,a. a consumer is less inclined to trade away goods they are lacking.b. a consumer's willingness to trade away goods they have in abundance diminishes.c. an increase in income will shift the indifference curve away from the origin.d. a decrease in income will shift the indifference curve away from the origin.ANS: A PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: Analytical65. Which of the following is not true? Indifference curvesa. are downward sloping.b. that are closer to the origin are preferable to indifference curves further from the origin.c. are bowed in toward the origin.d. do not cross.ANS: B PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: Interpretive66. As one moves down a typical indifference curve, the marginal rate of substitutiona. increases.b. decreases.c. is constant.d. will switch from positive to negative.ANS: B PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: Interpretive67. When two goods are perfect substitutes, the marginal rate of substitutiona. is constant along the indifference curve.b. decreases as the scarcity of one good increases.c. increases as the scarcity of one good increases.d. changes to reflect the consumer’s changing preferences for the goods.ANS: A PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: InterpretiveFigure 21-568. Refer to Figure 21-5. Which of the graphs shown may represent indifference curves?a. graph (a)b. graph (b)c. graph (c)d. All of the above are correct.ANS: D PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: Analytical69. Refer to Figure 21-5. Which of the graphs shown represent indifference curves for perfect substitutes?a. graph (a)b. graph (b)c. graph (c)d. None of the above is correct.ANS: A PTS: 1 DIF: 1 REF: 21-2TOP: Indifference Curve MSC: Interpretive70. When two goods are perfect complements they will havea. indifference curves with a positive slope.b. indifference curves that are right angles.c. indifference curves with a constant marginal rate of substitution.d. Both b and c are correct.ANS: B PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: Interpretive71. "Left" gloves and "right" gloves provide a good example ofa. perfect substitutes.b. perfect complements.c. negatively sloped indifference curves.d. positively sloped indifference curves.ANS: B PTS: 1 DIF: 2 REF: 21-2TOP: Perfect complements MSC: Analytical72. When two goods are perfect complements, the indifference curves area. positively sloped.b. negatively sloped.c. straight lines.d. right angles.ANS: D PTS: 1 DIF: 1 REF: 21-2TOP: Perfect complements MSC: Interpretive73. A set of indifference curves that are only slightly bowed inward represent goods that could best be described asa. perfect substitutes.b. perfect complements.c. very close substitutes.d. very close complements.ANS: C PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: Analytical74. The bowed shape of the indifference curve reflects the consumer'sa. unwillingness to give up a good that he already has in large quantity.b. unwillingness to purchase a good that he already has in large quantity.c. greater willingness to give up a good that he already has in large quantity.d. greater willingness to purchase a good that he already has in large quantity.ANS: C PTS: 1 DIF: 2 REF: 21-2TOP: Indifference Curve MSC: Interpretive75. The following diagram shows one indifference curve representing the preferences for goods x and y for oneconsumer.What is the marginal rate of substitution between points A and B?a. 2/5b. 1c. 5/2d. 3ANS: B PTS: 1 DIF: 2 REF: 21-2TOP: Marginal rate of substitution MSC: Analytical。