微观经济理论测试题库：tb05

1、Chapter 5Income and Substitution Effects26.If the prices of all goods increase by the same proportion as income, the quantity demanded of good x willa.decrease.b.increase.*c.remain unchanged.d.change in a way that cannot be determined from the information given. 27.Demand functions are “homogeneous

2、of degree zero in all prices and income.” This means*a.a proportional increase in all prices and income will leave quantities demanded unchanged.b. a doubling of all prices will not alter consumption decisions.c. prices directly enter individuals utility functions.d.an increase in income will cause

3、all quantities demanded to increase proportionately. 28.If income doubles and the quantity demanded of good x more than doubles, then good x can be described as aa.substitute plement good.c.necessity.*d.luxury.29.If an individual buys only two goods and these must be used in a fixed relationship wit

4、h one another (e.g., coffee and cream for a coffee drinker who never varies the amount of cream used in each cup), then*a.there is no substitution effect from a change in the price of coffee.b.there is no income effect from a change in the price of coffee.c.Giffens Paradox must occur if both coffee

5、and cream are inferior goods.d.an increase in income will not affect cream purchases.30.Consider the two following statements:I. x is an inferior good.II. x exhibits Giffens Paradox.Which of the following is true?a. I implies II, but II does not necessarily imply I.*b. II implies I, but I does not n

6、ecessarily imply II.c. I and II are statements of the same phenomenon.31.Assume x and y are the only two goods a person consumes. If after a rise in px the quantity demanded of y increases, one could saya.the income effect dominates the substitution effect.*b.the substitution effect dominates the in

7、come effect.c.it is still impossible to determine whether the substitution or income effect dominates.d.none of the above.32.An individuals demand curvea.represents the various quantities that a consumer is willing to purchase of a good at various price levels.b.is derived from an individuals indiff

8、erence curve map.c.will shift if preferences, prices of other goods, or income change.*d.all of the above.33.Which of the following will not cause a demand curve to shift position?*a. A doubling of the goods priceb.A doubling of the price of a closely substitutable goodc. A doubling of incomed. A sh

9、ift in preferencese. A doubling of both the price of x and the price of y34.A decrease in demand is represented bya.a shift outward of the entire demand curve.*b.a shift inward of the entire demand curve.c.a movement along the demand curve in a southeasterly direction.d.a movement along the demand c

10、urve in a northwesterly direction.35.If the compensated and Marshallian demand curves for a good intersect, at that point the Marshallian curve will be*a.flatter if this is a normal good.b.steeper if this is a normal good.c.flatter if this is an inferior good.d.horizontal.36.Which of the following d

11、emand functions is not homogenous of degree zero in px , py , and I?a.x = I / (px,+ py ).b.c. .*d. .37.Consider the following three concepts:I.Marshallian Demand x = x(px, py , I)II.Indirect Utility V = g (px, py , I)III.Compensated Demand x = xc (px, py , U)Which of these functions is necessarily h

12、omogeneous of degree zero in its argument?a.All of themb.None of them*c.Only Id.I and III, but not II38.The price elasticity of demand for good x is defined asa.percentage change in px / percentage change in x.*b.percentage change in x /percentage change in px .c.percentage change in x/percentage ch

13、ange in income.d.percentage change in x /percentage change in py .39.The price elasticity of demand for a horizontal demand curve isa.0.b.1.c.1.*d. infinity.40.The price elasticity of demand for a vertical demand curve is*a.0.b.1.c.1.d. infinity.41.If the demand for a product is elastic, then a rise

14、 in price will a. cause total spending on the good to increase.*b. cause total spending on the good to decrease.c.keep total spending the same, but reduce the quantity demanded.d. keep total spending the same, but increase the quantity demanded.42.The price elasticity of demand for a linear demand c

15、urve follows the pattern (moving from high prices to low prices)*a.elastic, unit elastic, inelastic.b.unit elastic, inelastic, elastic.c.inelastic, unit elastic, elastic.d.elastic, inelastic, unit elastic.43.If there are only two goods and these are consumed in fixed proportions, the price elasticities of demand for these two goods will sum toa.0.0b.0.5*c.1.0d.a number between 0 and 1.44.If a consumer purchases only two goods (x and y) and the demand for x is elastic,