1. T F Indifference curves can’t cross because people have convex preferences, meaning they like variety....
1. T F Indifference curves can’t cross because people have convex preferences, meaning they like variety.
2. T F Higher indifference curves are preferred to lower indifference curves for people that have monotonic preferences.
3. T F Perfect complements are goods that consumed in a 1:1 ratio.
4. T F If the utility of bundle A is three times as large as the utility of bundle B, it means that we like bundle A three times as much as bundle B.
5. T F To find the marginal utility of a good, we just need to take the partial derivative of the utility function with respect to that good.
Homework Answers
1. F
(ICs cannot cross because people have transitive preferences.)
2. T
(Monotonicity means more is better so higher IC is preferred.)
3. F
(They are consumed in a ratio a:b and not necessarily 1:1.)
4. T
(Utility shows preference.)
5. T
(MU os a good = partial derivative of utility with respect to that
good.)
Add Answer to:
1. T F Indifference curves can’t cross because people have
convex preferences, meaning they like variety....
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