Business > EXAM > University of Texas, Dallas - MECO 6303 Test 2 Quiz. Questions And Answers. Graded A (All)

University of Texas, Dallas - MECO 6303 Test 2 Quiz. Questions And Answers. Graded A

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University of Texas, Dallas - MECO 6303 Test 2 Quiz. Questions And Answers. Graded A.Question 1 0 out of 1 points For an inferior good the substitution effect is Selected Answer: b. the opposite... as for a normal good Answers: a. the same as for a normal good b. the opposite as for a normal good c. zero d. all of the above  Question 2 0 out of 1 points Which of the following conditions is necessary for a pure substitution effect to occur? Selected Answer: b. the consumer stays on the same budget line Answers: a. only one price falls b. the consumer stays on the same budget line c. the consumer moves to a higher indifference curve d. a and b of the above  Question 3 1 out of 1 points For a normal the income effect is Selected Answer: b. greater than zero Answers: a. less than one b. greater than zero c. less than zero d. greater than .5  Question 4 0 out of 1 points Which of the following are valid properties of budget lines? Selected Answer: b. the rate at which one can substitute one good for another diminishes in either direction Answers: a. they slope down b. the rate at which one can substitute one good for another diminishes in either direction c. they cannot intersect d. all of the above e. a and c of the above  Question 5 0 out of 1 points A price effect for an inferior good is composed of which of the following? Selected Answer: a. an income effect and an Engel effect Answers: a. an income effect and an Engel effect b. an inferior effect and a normal effect c. a substitution effect and an income effect d. a superior and inferior price effect  Question 6 0 out of 1 points Which of the following results in a pure income effect? Selected Answer: d. a decrease in money income with prices constant Answers: a. a proportional fall in all prices, money income constant b. a proportional rise in all prices, money income constant c. an increase in money income with prices constant d. a decrease in money income with prices constant e. all of the above [Show More]

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