DEL CAMPO, BLESSIE ANN C.

BSBA HRM 2C
ECO-MODULE 3

ASSIGNMENT
Choose the letter of the correct answer.
_____ 1. ___ can also cause an upward shift in the budget line.
a. Higher prices
b. Higher indifference curve
c. Higher utility
d. Lower prices

_____ 2. The rate of substitution alo9ng the indifference curve implies _____.
a. Utility trade-off
b. Commodity trade-off
c. Relative prices
d. Relative utility of commodities

_____ 3. Another indifference curve corresponds to another level of satisfaction because of the change in
_____.
a. Budget
b. Prices
c. Consumption level
d. Utility

_____ 4. The maximum satisfaction point of a budget line is where it is tangent to an indifference curve
because _____.
a. Higher indifference curve yields more satisfaction
b. Budget can only buy the satisfaction of the indifference curve within it.
c. The highest indifference curve within a budget line is that which is tangent to it.
d. All of the above

_____ 5. Deviation from the quasi-marginal condition results in less satisfaction because of _____.
a. Relative prices
b. Commodity trade-off
c. Relative utility of commodities
d. Utility trade-off

_____ 6. Substitution effect results from a _____.

a. Change in marginal utility
b. Change in relative marginal utility
c. Decrease in the marginal utility of one commodity
d. Change in total satisfaction

_____ 7. There is consumer surplus when one _____.

a. Pays less for succeeding consumption
b. Pays less for preceding consumption
 c. Pays more for succeeding consumption
d. None of the above

_____ 8. Water is cheaper than diamond because of _____.

a. Need
b. Utility in use
c. Utility in exchange
d. Purchasing power

_____ 9. The marginal rate of substitution of Product A for Product B is ____ when there is more
preference for the farmer.
a. Higher
b. Unchanged
c. Varied
d. Lower

_____ 10. The budget line _____ when incomes increase.

a. Shifts upward
b. Shifts downward
c. Does not change
d. Varies

Identify what is being described

_____ 1. Change in overall consumption due to a change in price.
_____ 2. Change in consumption mix due to a change in price.
_____ 3. Equality in the marginal utilities of a commodity item.
_____ 4. One factor that changes the consumption mix favors the commodity over another.
_____ 5. Causes total satisfaction to change.
_____ 6. It is the basis of consumption and demand behavior.
_____ 7. The proponent of Theory of Motivation, which explains the psychological factors that affect
consumer behavior.
_____ 8.the psychological law that is based on subjective valuation of satisfaction.
_____ 9. Term in economics for satisfaction.
_____ 10. It depicts the combination that does nor yield any difference in satisfaction.
_____ 11. Social group that has a direct or indirect influence on one’s consumer behavior.
_____ 12. Complete description of an indifference curve’s shape.
_____ 13. The relationship of these two graphical illustrations tells the best combination in the
consumption of times following a limited budget.
_____ 14. What MRS stands for.
_____ 15. The potential consumption of a certain tem on its market price and the income of its buyers.
_____ 16. Principles behind a consumer finding a consumption mix that will garner him the highest level
of satisfaction.
_____ 17. Formula for marginal utility.
_____ 18. It is the function of the units of consumption.
_____ 19. The set of activities a person is expected to perform.
_____ 20.it is the function of the units of consumption.