Which of the following is not a standard assumption of consumer preferences?

• Completeness

• Transitivity

• Non-satiation

• Diminishing Marginal Returns

The condition for utility maximization is when:

• Total utility is maximized

• Marginal rate of substitution equals the price ratio

• Marginal utility of goods is equal

• Budget line is vertical

The indirect utility function represents:

• Minimum expenditure to achieve a utility level

• Utility derived from consuming a bundle at given prices and income

• Maximum quantity consumed

• Change in utility with respect to price

Which of the following demand functions keeps utility constant while analyzing price changes?

• Marshallian demand

• Hicksian demand

• Cross-price demand

• Income demand

A good whose demand increases as income increases is called:

• Inferior good

• Giffen good

• Normal good

• Luxury good

Consumer surplus is the area:

• Below the demand curve and above the supply curve

• Under the supply curve

• Under the demand curve and above the price line

• Above the demand curve

In the expected utility framework, a risk-averse consumer:

• Has a linear utility function

• Prefers a risky option over a certain amount

• Has a concave utility function

• Is indifferent to risk

The elasticity of supply measures:

• Responsiveness of demand to price changes

• Responsiveness of supply to income changes

• Responsiveness of quantity supplied to price changes

• Slope of the utility curve

Which of the following is not a determinant of supply?

• Price of the product

• Input costs

• Consumer income

• Technology

The Slutsky equation is used to:

• Determine consumer surplus

• Separate substitution and income effects

• Calculate price elasticity of demand

• Measure supply response