essay

Quiz  1
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1. Slopes of lines are especially important in economics because:
A.     they measure marginal changes.

B.     they always tell us something about profits.

C.     positive slopes are always preferred to negative slopes.

D.     they always relate to resource and output scarcity.

Explain

2. Refer to the diagram. The slope of curve ZZ at point B  and C:

A. infinity and Zero.

B.     zero and -2 2/5.

C.     +1 and -2 .

D.     -1 and Zero.

Explain

3. In the diagram the equation for this line is and it stand for ………

A.     y = 4 – 11/3x        Supply

B.     y = 3 + 3/4x      Demand

C.     y = 4 – 3/4x          Supply

D.     y = 4 – 11/3x          Demand

Explain

4. Any combination of goods lying outside of the budget line:
A. implies that the consumer is not spending all his income.
B. yields less utility than any point on the budget line.
C. yields less utility than any point inside the budget line.
D. is unattainable, given the consumer’s income.

Explain