UESTION 5 An assumption of the model of perfect competition is: A. many buyers a

Question

UESTION 5 An assumption of the model of perfect competition is: A. many buyers and sellers. B. limited information. C. discrimination. D. difficult entry and exit. 1 points    QUESTION 6 As a consumer gives up some of good A, which is on the horizontal axis, to get more of good B, which is on the vertical axis, his or her marginal rate of substitution of good A for good B: A. decreases. B. becomes infinite. C. goes from negative to positive. D. increases. 1 points    QUESTION 7 Economic models are: A. useless if they are simple. B. made generally of wood, plastic, and/or metal. C. set up and used to duplicate reality. D. often useful in forming economic policy. 1 points    QUESTION 8 Feng is thinking of mowing lawns over the summer. His friend Jason mows lawns, and he says the marginal cost of mowing the fourth lawn in a day is $40. Feng thinks about it and realizes that the total cost of mowing four lawns is: A. $40. B. not possible to determine from the information provided. C. $80. D. $160. 1 points    QUESTION 9 Gasoline, a derivative of oil, is a large part of transportation costs for many producers. If the price of oil increases at the same time that incomes fall for many consumers, one would expect the equilibrium price of many normal goods to _____, while their equilibrium quantities would _____. A. decrease; fall, rise, or stay the same B. fall; fall C. fall; rise D. fall, rise, or stay the same; decrease 1 points    QUESTION 10 Gillian is consuming her optimal consumption bundle of peanuts and raisins. The marginal utility associated with the last peanut she consumes is 4 utils, and the marginal utility associated with the last raisin is 2 utils. What must be the price of peanuts relative to that of raisins? A. 1 B. 2 C. 0.5 D. The relative price is undefined. UESTION 5 An assumption of the model of perfect competition is: A. many buyers and sellers. B. limited information. C. discrimination. D. difficult entry and exit. 1 points    QUESTION 6 As a consumer gives up some of good A, which is on the horizontal axis, to get more of good B, which is on the vertical axis, his or her marginal rate of substitution of good A for good B: A. decreases. B. becomes infinite. C. goes from negative to positive. D. increases. 1 points    QUESTION 7 Economic models are: A. useless if they are simple. B. made generally of wood, plastic, and/or metal. C. set up and used to duplicate reality. D. often useful in forming economic policy. 1 points    QUESTION 8 Feng is thinking of mowing lawns over the summer. His friend Jason mows lawns, and he says the marginal cost of mowing the fourth lawn in a day is $40. Feng thinks about it and realizes that the total cost of mowing four lawns is: A. $40. B. not possible to determine from the information provided. C. $80. D. $160. 1 points    QUESTION 9 Gasoline, a derivative of oil, is a large part of transportation costs for many producers. If the price of oil increases at the same time that incomes fall for many consumers, one would expect the equilibrium price of many normal goods to _____, while their equilibrium quantities would _____. A. decrease; fall, rise, or stay the same B. fall; fall C. fall; rise D. fall, rise, or stay the same; decrease 1 points    QUESTION 10 Gillian is consuming her optimal consumption bundle of peanuts and raisins. The marginal utility associated with the last peanut she consumes is 4 utils, and the marginal utility associated with the last raisin is 2 utils. What must be the price of peanuts relative to that of raisins? A. 1 B. 2 C. 0.5 D. The relative price is undefined. UESTION 5 An assumption of the model of perfect competition is: A. many buyers and sellers. B. limited information. C. discrimination. D. difficult entry and exit. 1 points    QUESTION 6 As a consumer gives up some of good A, which is on the horizontal axis, to get more of good B, which is on the vertical axis, his or her marginal rate of substitution of good A for good B: A. decreases. B. becomes infinite. C. goes from negative to positive. D. increases. 1 points    QUESTION 7 Economic models are: A. useless if they are simple. B. made generally of wood, plastic, and/or metal. C. set up and used to duplicate reality. D. often useful in forming economic policy. 1 points    QUESTION 8 Feng is thinking of mowing lawns over the summer. His friend Jason mows lawns, and he says the marginal cost of mowing the fourth lawn in a day is $40. Feng thinks about it and realizes that the total cost of mowing four lawns is: A. $40. B. not possible to determine from the information provided. C. $80. D. $160. 1 points    QUESTION 9 Gasoline, a derivative of oil, is a large part of transportation costs for many producers. If the price of oil increases at the same time that incomes fall for many consumers, one would expect the equilibrium price of many normal goods to _____, while their equilibrium quantities would _____. A. decrease; fall, rise, or stay the same B. fall; fall C. fall; rise D. fall, rise, or stay the same; decrease 1 points    QUESTION 10 Gillian is consuming her optimal consumption bundle of peanuts and raisins. The marginal utility associated with the last peanut she consumes is 4 utils, and the marginal utility associated with the last raisin is 2 utils. What must be the price of peanuts relative to that of raisins? A. 1 B. 2 C. 0.5 D. The relative price is undefined.

Explanation / Answer

1- the assumption of perfect competition is that there are many buyer and sellers thus the actions of any one community doesnt affect the market prices.

so answer is A

2- mrs i the rate at which we are able to substitute one good for other such that thelevel of satisfaction remains the same,

here the mrs drops as we move down the ic and increases as we move upwards

so answer is increases.

3- economic models those are formed are done with the purpose tp help in formation of economic policies,

so answer is D

4- here we just have the marginal cost of 4th lawn and no other relavant information.

we cant determine the total cost from this

so answer is B

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