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1、MULTIPLE CHOICESection 3.1easy 1. Gary Franklin is a movie critic. He invented the Franklin Scale with which he rates movies from 1 to 10 (10 being best). When asked about his scale, Mr. Franklin explained “that it is
2、 a subjective measure of movie quality. A movie with a ranking of 10 is not necessarily 10 times better than a movie with a ranking of 1, but it is better. A movie with a ranking of 5 is better than a movie with a r
3、anking of 1, but is not as good a movie with a ranking of 10. That's all it really tells you.“ Based on Mr. Franklin's description, his scale is:a. ordinal but not cardinal.b. cardinal but not ordinal.c. an ob
4、jective standard to judge movies.d. neither cardinal nor ordinal.easy 2. Which of the following is NOT an assumption regarding people's preferences in the theory of consumer behavior?a. preferences are complete.b. p
5、references are transitive.c. consumers prefer more of a good to less.d. none of the above.easy 3. The theory of consumer behavior is based on certain assumptions. It includes at least the assumption(s) that preferences
6、are:a. complete.b. transitive.c. intransitive.d. both (a) and (b) are correct.e. both (a) and (c) are correct.easy 4. The assumption of transitive preferences implies that indifference curves must:a. not cross one anothe
7、r. b. have a positive slope.c. be L-shaped. d. be convex to the origin.e. all of the above.easy 5. If a market basket is changed by adding more of at least one good, then rational consumers will
8、:a. rank the market basket more highly after the change.b. more likely prefer a different market basket.c. rank the market basket as being just as desirable as before.d. be unable to decide whether the first market baske
9、t is preferred to the second or vice versa.e. have indifference curves that cross.easy 12. In what ways can economists help auto manufacturers estimate the marginal rate of substitution between features such as
10、 vehicle interior size and acceleration?a. examining cost datab. conducting consumer surveysc. solving the standard consumer modeld. statistically analyzing data on historical purchasese.(b) and (d) onlyeasy 13. Indiffer
11、ence curves are convex to the origin because of:a. transitivity of consumer preferences.b. the assumption of a diminishing marginal rate of substitution.c. the assumption that more is preferred to less.d. the assumption
12、of completeness.e. none of the above.easy 14. Suppose that a market basket of two goods is changed by adding more of one of the goods and subtracting one unit of the other. The consumer will:a. rank the market basket m
13、ore highly after the change.b. rank the market basket more highly before the change.c. rank the market basket just as desirable as before.d. any one of the above statements may be true.easy 15. If indifference curves cro
14、ss, then:a. the assumption of a diminishing marginal rate of substitution is violated.b. the assumption of transitivity is violated.c. the assumption of completeness is violated.d. consumers minimize their satisfaction.e
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