1、A Giffen good must be an inferior good.
A、对
B、错
2、The compensated demand function refers to the demand function of someone who is adequately paid for what he for she sells.
A、对
B、错
3、In the case of homothetic preferences the entire change in demand from a price change is due to the substitution effect.
A、对
B、错
4、Walt considers x and y to be perfect substitutes. They originally cost 10 and 9 respectively. His income is 720. One day the price of x drops to 8. Which of the following is true?
A、The income effect increases the quantity of y by 90．
B、The substitution effect increases the quantity of y by 80.
C、The substitution effect increases the quantity of x by 90
D、The income effect increases the quantity of x by 80.
5、Suppose that bananas are a normal good and Woody is currently consuming 100 bananas at a price of 10 cents each.
A、His Slutsky compensated demand curve going through this point is steeper than his ordinary demand curve.
B、His ordinary demand curve going through this point is steeper than his Slutsky compensated demand curve.
C、His ordinary demand curve is
6、John purchases two goods, x and y. Good x is an inferior good for some range of income.There must be another range of income for which good x is a normal good.
A、对
B、错
7、The following can be said about the income and substitution effects of a price increase on the demand for the good whose price rose:
A、The former is always positive and the latter is always negative.
B、Both can be either positive or negative.
C、While the latter is always negative, the former can be either positive or negative.
D、While the former is always negative, the la
8、When the price of x rises, Marvin responds by changing his demand for x. The substitution effect is the part of this change that represents his change in demand:
A、holding the prices of substitutes constant.
B、if he is allowed to substitute as much x for y as he wishes.
C、if his money income is held constant when the price of x changes.
D、none of the above.
9、Walt considers x and y to be perfect substitutes. They originally cost 10 and 9 respectively. His income is 720. One day the price of x drops to 8. Which of the following is true?
A、The income effect increases the quantity of y by 90．
B、The substitution effect increases the quantity of y by 80.
C、The substitution effect increases the quantity of x by 90.
D、The income effect increases the quantity of x by 80.
10、Suppose that bananas are a normal good and Woody is currently consuming 100 bananas at a price of 10 cents each.
A、 His Slutsky compensated demand curve going through this point is steeper than his ordinary demand curve.
B、 His ordinary demand curve going through this point is steeper than his Slutsky compensated demand curve.
C、 His ordinary demand curve
