NABILA ASYIFA BAHRI – 1906286216

FARIZA IFRA ANDRIANI – 1906290200

KHALISHA RAFILA GUSRIZAL – 1906286121

FARISCHA WINA AGITH - 1906388193

LATIHAN
MINGGU Ke 4 dan 5

Bagian A: Pilihlah (dengan memberi tanda silang “X”) pada salah satu jawaban yang paling
tepat!
1. The theory of consumer choice examines
a. the determination of output in competitive markets.
b. the tradeoffs inherent in decisions made by consumers.
c. how consumers select inputs into manufacturing production processes.
d. the determination of prices in competitive markets.

2. The theory of consumer choice examines how

a. firms make profit-maximizing decisions.
b. consumers make utility-maximizing decisions.
c. wages are determined in competitive labor markets.
d. prices are determined in competitive goods markets.

3. The theory of consumer choice

a. underlies the concept of the demand for a particular good.
b. underlies the concept of the supply of a particular good.
c. ignores, for the sake of simplicity, the trade-offs that consumers face.
d. can be applied to many questions about household decisions, but it cannot be applied to
questions concerning wages and labor supply.

Figure I
The downward­sloping line on the figure represents a consumer’s budget constraint.

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 4. Refer to Figure I. If the consumer’s income is $140, then what is the price of a CD?
a. $3
b. $5
c. $7
d. $9

5. Refer to Figure I. A consumer who chooses to spend all of her income could be at which point(s)
on the figure?
a. A only
b. E only
c. B, C, or D only
d. A, B, C, or D only

6. Refer to Figure I. All of the points identified on the figure represent affordable consumption
options with the exception of
a. A.
b. E.
c. A and E.
d. None of the above are correct. All of the points identified on the figure are affordable.

Figure II

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7. Refer to Figure II. Which of the graphs in the figure reflects a decrease in the price of good X
only?
a. graph a
b. graph b
c. graph c
d. graph d

8. Refer to Figure II. Which of the graphs in the figure reflects an increase in the price of good Y
only?
a. graph a
b. graph b
c. graph c
d. graph d

9. Refer to Figure II. Which of the graphs in the figure could reflect a simultaneous decrease in the
price of good X and increase in the price of good Y?
(i) graph a
(ii) graph b
(iii) graph c
(iv) graph d
a. (ii) only
b. (iii) only
c. (ii) or (iv) only
d. None of the above is correct.

Figure III

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10. Refer to Figure III. You have $300 to spend on good X and good Y. If good X costs $30 and
good Y costs $50, your budget constraint is
a. AB.
b. BC.
c. CD.
d. DE.

11. Refer to Figure III. You have $600 to spend on good X and good Y. If good X costs $100 and
good Y costs $100, your budget constraint is
a. AB.
b. BC.
c. CD.
d. DE.

12. Refer to Figure III. If the price of good X is $5, and your budget constraint is DE, what is the
price of good Y?
a. $10
b. $5
c. $2.50
d. $1.67

13. The following diagram shows two budget lines: A and B.

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 Which of the following could explain the change in the budget line from A to B?
a. a decrease in the price of X
b. an increase in the price of Y
c. a decrease in the price of Y
d. More than one of the above could explain this change.

14. The following diagram shows two budget lines: A and B.

Which of the following could explain the change in the budget line from A to B?
a. a simultaneous decrease in the price of X and the price of Y
b. an increase in income
c. a decrease in income and a decrease in the price of Y
d. Both a and b are correct.

15. The following diagram shows two budget lines: A and B.

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 Which of the following could explain the change in the budget line from A to B?
a. a decrease in income and a decrease in the price of X
b. a decrease in income and an increase in the price of X
c. an increase in income and a decrease in the price of X
d. an increase in income and an increase in the price of X

16. A budget constraint shows

a. the maximum utility that a consumer can achieve for a given level of income.
b. a series of bundles that cost the consumer the same amount of money.
c. a series of bundles that give the consumer the same level of utility.
d. All of the above are correct.

17. Consider two goods: peanuts and crackers. The slope of the consumer's budget constraint is
measured by the
a. consumer's income divided by the price of crackers.
b. relative price of peanuts and crackers.
c. consumer's marginal rate of substitution.
d. number of peanuts purchased divided by the number of crackers purchased.

18. Suppose a consumer spends his income on CDs and DVDs. If his income decreases, the budget
constraint for CDs and DVDs will
a. shift outward, parallel to the original budget constraint.
b. shift inward, parallel to the original budget constraint.
c. rotate outward along the CD axis because he can afford more CDs.
d. rotate outward along the DVD axis because he can afford more DVDs.

19. A consumer who doesn't spend all of her income

a. would be at a point outside of her budget constraint.
b. would be at a point inside her budget constraint.
c. must not be consuming positive quantities of all goods.
d. must be consuming at a point where her budget constraint touches one of the axes.

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20. An increase in a consumer's income
a. increases the slope of the consumer's budget constraint.
b. has no effect on the slope of the consumer's budget constraint.
c. decreases the slope of the consumer's budget constraint.
d. has no effect on the consumer's budget constraint.

Figure IV

21. Refer to Figure IV. Given the budget constraint depicted in the graph, the consumer’s optimal
choice will be point
a. B.
b. C.
c. D.
d. E.

22. Refer to Figure IV. It would be possible for the consumer to reach I2 if
a. the price of Y decreases.
b. the price of X decreases.
c. income increases.
d. All of the above would be correct.

23. Refer to Figure IV. Bundle B represents a point where

a. MRSxy > Py /Px.
b. MRSxy = Px/Py .
c. MRSxy < Px/Py .
d. MRSxy > Px/Py .

24. Refer to Figure IV. Bundle D represents a point where

a. MRSxy > Py /Px.

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 b. MRSxy = Px/Py .
c. MRSxy < Px/Py .
d. MRSxy < Py /Px.

25. The goal of the consumer is to

a. maximize utility.
b. minimize expenses.
c. spend more income in the current time period than in the future.
d. All of the above are the goals of the consumer.

26. When a consumer is purchasing the best combination of two goods, X and Y, subject to a budget
constraint, we say that the consumer is at an optimal choice point. A graph of an optimal choice
point shows that it occurs
a. along the highest attainable indifference curve.
b. where the indifference curve is tangent to the budget constraint.
c. where the marginal utility per dollar spent is the same for both X and Y.
d. All of the above are correct.

27. When a consumer is purchasing the best combination of two goods, X and Y, subject to a budget
constraint, we say that the consumer is at an optimal choice point. A graph of an optimal choice
point shows that it occurs
a. along the highest indifference curve.
b. along the lowest budget constraint.
c. where the indifference curve is tangent to the budget constraint.
d. All of the above are correct.

28. A consumer chooses an optimal consumption point where the

a. marginal rate of substitution equals the relative price ratio.
b. slope of the indifference curve equals the slope of the budget constraint.
c. ratio of the marginal utilities equals the ratio of the prices.
d. All of the above are correct.

29. Which of the following equations corresponds to an optimal choice point?

(i) MRS = PX/PY
(ii) MUX/MUY = PX/PY
(iii) MUX/PX = MUY/PY
(iv) MUX/PY = MUY/PX
a. (i) only
b. (i), (ii), and (iii) only
c. (ii) and (iv) only
d. (i), (ii), (iii), and (iv)

30. An optimizing consumer will select a consumption bundle in which

a. income is maximized, and prices are minimized.

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 b. utility is maximized, and prices are minimized.
c. utility is maximized, subject to budget constraints.
d. utility is maximized, and indifference curves are linear.

31. If the consumer's income and all prices simultaneously decrease by one-half, then the optimum
consumption will
a. shift outward relative to the original optimum.
b. move leftward along the original budget constraint.
c. shift inward relative to the original optimum.
d. not change.

32. When the indifference curve is tangent to the budget constraint,

a. a consumer cannot be made better off without an increase in her income or a price decrease in
one of the goods she consumes.
b. the consumer is likely to be at a sub-optimal level of consumption.
c. income is at its optimum for a consumer.
d. indifference curves are likely to intersect.

33. If we observe that a consumer’s budget constraint has shifted outward, we can assume that the
consumer will buy
a. fewer normal goods and more inferior goods.
b. more normal goods and fewer inferior goods.
c. more normal goods and more inferior goods.
d. fewer normal goods and fewer inferior goods.

Figure V

34. Refer to Figure V. Suppose that a consumer is originally at point R. Then the price of good X
decreases. Which of the following represents the income effect of the price decrease?
a. the movement from point R to point S

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 b. the movement from point R to point T
c. the movement from point T to point S
d. None of the above is correct.

35. Refer to Figure V. Suppose that a consumer is originally at point R. Then the price of good X
decreases. Which of the following represents the substitution effect of the price decrease?
a. the movement from point R to point S
b. the movement from point R to point T
c. the movement from point T to point S
d. None of the above is correct.

36. A consumer consumes two normal goods, coffee and chocolate. The price of coffee rises. The
income effect, by itself, suggests that the consumer will consume
a. more coffee and more chocolate.
b. less coffee and less chocolate.
c. more coffee and less chocolate.
d. less coffee and more chocolate.

37. A consumer consumes two normal goods, popcorn and Pepsi. The price of Pepsi rises. The
substitution effect, by itself, suggests that the consumer will consume
a. more popcorn and more Pepsi.
b. less popcorn and less Pepsi.
c. more popcorn and less Pepsi.
d. less popcorn and more Pepsi.

38. Consider a consumer who purchases two goods, X and Y. If the price of good Y falls, then the
substitution effect by itself will
a. cause the consumer to buy more of good Y and less of good X.
b. cause the consumer to buy more of good X and less of good Y.
c. not affect the amount of goods X and Y that the consumer buys.
d. result in an upward-sloping demand for good Y if the substitution effect is positive.

39. Pepsi and pizza are normal goods. When the price of pizza falls, the substitution effect by itself
will cause a
a. shift to a lower indifference curve so that the consumer buys less Pepsi.
b. shift to a higher indifference curve so that the consumer buys more Pepsi.
c. movement along the indifference curve so that the consumer buys more Pepsi.
d. movement along the indifference curve so that the consumer buys less Pepsi.

40. Pepsi and pizza are normal goods. When the price of pizza rises, the substitution effect causes
Pepsi to be relatively
a. more expensive, so the consumer buys more Pepsi.
b. more expensive, so the consumer buys less Pepsi.
c. less expensive, so the consumer buys more Pepsi.
d. less expensive, so the consumer buys less Pepsi.

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Bagian B: Jawab pertanyaan berikut ini.

1. Jelaskan apakah pernyataan berikut ini benar atau salah?

a. “All giffen goods are inferior goods.”
a. “All inferior goods are giffen goods.”
2. Berikan contoh beberapa barang yang termasuk inferor goods dan giffen goods. Jelaskan!
3. Jelaskan perbedaan antara barang inferior dan barang normal. Sebagai negara berkembang yang
sedang mengalami peningkatan pendapatan (yang diukur dengan PDB), apakah yang akan
terjadi pada permintaan barang inferior? Jelaskan!
4. Dengan menggunakan teori konsumen yang telah anda pelajari, setujukah anda dengan
pernyataan berikut ini:
“Warren Buffet is the second richest person in the world. He does not face any constraint on
his ability to purchase the commodities he wants.”
5. Evaluate the following statement: “Giffen goods violate the ‘law of demand,’ therefore, the
‘law of demand’ can’t really be considered a ‘law.’”
Jawab : Law of demand is still considered as a law since it applies to almost all kinds of goods.
Economists had accepted the validity of the law under most situations based on observation. It
was documented back at 1892 by Alfred Marshall. There are only two exceptions to the Law of
Demand, Giffen and Veblen goods, they do not follow this law.

***Selamat Belajar***

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