微观经济学英语试题 mctest2002.docVIP

Microeconomics 1 Multiple Choice Test Spring term 2002 Attempt all questions. (If needed in any question, assume that good 1 is represented on the horizontal axis.) The principle of completeness meansa. the consumer always prefers one good to anotherb. the consumer always prefers one good to the other or is indifferent between themc. the consumer prefers more goods to lessd. the consumer is maximising their utilitye. the consumer cannot make a choice between two goods The principle of transitivity meansa. good A is preferred to good Bb. if good A is preferred to B, and B to C, then A must be preferred to Cc. more of good A is preferred to good B and to good Cd. good A is always preferred to B if B is preferred to Ce. good A provides more utility than B and B more than C Indifference curves can cross a. if the income effect outweighs the substitution effectb. if the substitution effect outweighs the income effectc. for Giffen goodsd. for inferior goodse. none of the above, they cannot ever cross. Indifference curves slope down becausea. of the principle of non-satiationb. of the principle of completenessc. more of a good is demanded as the price fallsd. of the principle of transitivitye. none of the above The marginal utility of income probablya. increases as income increasesb. decreases as income increasesc. increases as income increases but at a decreasing rated. decreases as prices risee. none of the above The effect of a 10% rise in both prices and money income is toa. shift the budget constraint out by 10%b. shift the budget constraint inwards by 10%c. rotate the budget line about a point on the horizontal axisd. leave the budget constraint unchangede. none of these Compensating a consumer for the effect of a price risea. eliminates both income and substitution effectsb. eliminates the income effect, leaving the substitution effectc. eliminates the substitution effect, leaving the income effectd. eli