indifference curves for perfect substitutes are ?

Related Mcqs:

1. Suppose we measure the quantity of good X on the horizontal axis and the quantity of good Y on the vertical axis If indifference curves are bowed inward, as we move from having an abundance of good X to having an abundance of good Y, the marginal rate of substitution of good Y for good X (the slope of the indifference curve) ?

   A. rises
   B. stays the same
   C. could rise or fall depending on the relative prices of the two goods.
   D. falls

2. Which of the following statements is not true with regard to the standard properties of indifference curves ?

   A. Indifference curves are downward sloping
   B. indifference curves are bowed outward
   C. Indifference curves do not cross each other
   D. Higher indifference curve is preferred to lower ones

3. The change in consumption that results when a price change moves the consumer along a given indifference curve is known as the ?

   A. inferior effect
   B. normal effect
   C. substitution effect
   D. complementary effect
   E. income effect

4. The slope at any point on an indifference curve is known as ?

   A. the marginal rate of substitution
   B. the marginal rate of trade-off.
   C. the trade-off rates
   D. the marginal rate of indifference

5. When ________ substitutes exist, a monopolist has ________ power to raise price?

   A. more; more
   B. fewer; less
   C. more; less
   D. no; infinite

6. If consumers think that there are very few substitutes for a good, then ?

   A. Supply would tend to be price elastic
   B. none of these answers
   C. demand would tend to be price inelastic
   D. demand would tend to be price elastic

7. Demand curves are derived while holding constant ?

   A. incomes, tastes, and the price of other goods.
   B. income, tastes, and the price of the good.
   C. income and tastes
   D. tastes and the price of other goods

8. Most empirical studies show that firm’s cost curves ?

   A. slope up to the right
   B. are U-shaped
   C. slope down to the right
   D. slope down to the right and then level off.

9. Keynesians and monetarists differ over how steep the IS and LM curves actually are Monetarists claim that the IS curve must be __________ and the LM curve must be __________?

   A. flat; steep
   B. flat; flat
   C. steep; flat
   D. steep; steep

10. If Hong Kong and Taiwan have identical production possibilities curves that are subject to increasing opportunity costs ?

    A. Trade would depend on difference in demand conditions
    B. Trade would depend on economies of large-scale production
    C. Trade would depend on the use of different currencies
    D. There would be no basis for gainful trade