Please just tell me the correct options for these 5 subquestions of the same ONE question

Subject:EconomicsPrice:3.86 Bought11

Share With

Please just tell me the correct options for these 5 subquestions of the same ONE question. You may choose not to give an explanantion:

(1A) What are the main differences between traditional economics and behavioral economics?

 

1. Traditional economics assumes that decision makers are fully informed.
2. Behavioral economics does not take as a given that decision makers are rational.
3. Traditional economics is mainly theoretical.

 

(1B) Rick's enjoyment of soda follows the principle of diminishing marginal utility. He calculates his total utility after consuming the first soda at 10, second soda at 15, third soda at 20, and fourth soda at 19. By the fourth soda Rick starts to feel sick. When is Rick's marginal utility maximized?

 

1. When he consumes the fourth soda.
2. When he consumes the third soda.
3. When he consumes the first soda.

 

(1C) Along an indifference curve, if the marginal rate of substitution is 3, then the consumer is willing to

 

1. give up 1 unit of the good measured along the vertical axis for 3 units of the good measured along the horizontal axis.
2. give up 3 units of the good measured along the vertical axis for 1 unit of the good measured along the horizontal axis.
3. pay $3 for one unit of the good measured along the vertical axis.

 

(1D) As a student Shayla enjoys consuming alphabet soup which is considered an inferior good. After Shayla graduates from college she acquires a job working as a data analyst and her income increases dramatically. What will most likely happen to Shayla's consumption of alphabet soup?

 

1. Shayla would discontinue consuming the soup and start eating steaks.
2. Shayla would continue consuming alphabet soup.
3. Shayla would discontinue consuming the soup and switch to peanut butter.

 

(1E) Suppose a consumer moves up and to the left along an indifference curve from point A to point B. If the consumer gives up one unit of X (on the horizontal axis), but only requires a small amount of good Y (on the vertical axis) to compensate, then what can we say about the marginal rate of substitution and the slope of the indifference curve between points A and B?

 

1. The marginal rate of substitution is high and the indifference curve is steep.
2. Total utility is increasing.
3. The marginal rate of substitution is low and the indifference curve is relatively flat.