A) shows different bundles of goods that all yield the same total utility.
B) shows different bundles of goods that all cost the same amount.
C) shows different bundles of goods that all maximize an individual's utility.
D) shows how much income is needed to maximize total utility.
F) B) and D)
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A) Roger gets a raise at work.
B) Roger gets unlimited coupons for $2 off the price of a movie ticket.
C) The price of movie tickets increases to $8.
D) None of these changes would cause Roger's budget constraint to move from B to A.
F) A) and B)
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A) Three pairs of earrings and four hairbands
B) Two pairs of earrings and four hairbands
C) No earrings and six hairbands
D) Cannot answer this question without knowing Tina's income and the prices of the two goods
F) C) and D)
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A) Bob is revealing his strong distaste for New Balance running shoes.
B) Bob is revealing he will always choose Nike over any other shoe brand.
C) Bob will get more utility per dollar from the Nike running shoes than any other in the store.
D) Bob made a poor choice, if he really prefers Adidas.
F) B) and C)
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A) is a specific combination of goods and services an individual could consume.
B) describes the amount of people that choose a particular combination of goods.
C) is a curve describing different combinations of goods and services an individual could choose to consume.
D) is when a store sells goods at a discounted price.
F) A) and D)
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A) Two cases of soda for every three gallons of milk
B) One case of soda for every one and a half gallons of milk
C) Three cases of soda for every four and a half gallons of milk
D) All of these accurately reflect Don's tradeoff.
F) A) and B)
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A) the change in relative prices is reflected in a change in the slope of the budget constraint.
B) the change in relative prices can be thought of as a change in the opportunity costs of each good.
C) the change in relative prices is reflected in a change in the marginal utility per dollar spent on each good.
D) All of these statements are true.
F) B) and C)
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A) responding to another's actions with a similar action.
B) deriving utility from an action that will cause another's utility to increase.
C) doing good things for people and asking nothing in return.
D) deriving utility from the action of a stranger.
F) None of the above
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A) Individuals seek to maximize utility.
B) Individuals seek to maximize their income, not utility.
C) Individuals will either minimize or maximize utility depending on the situation.
D) Individuals rarely try to maximize their utility.
F) None of the above
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A) steak and pasta are both normal goods, because they are both food she eats regardless of her income.
B) steak and pasta are both inferior goods, because they are both food she eats regardless of her income.
C) pasta is an inferior good because her demand increased when her income went down.
D) steak and pasta are both inferior goods, because they are both food she eats regardless of her income; also, pasta is an inferior good because her demand increased when her income went down.
F) A) and C)
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Correct Answer
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