Henry's utility function is x2 + 16xw + 64w2, where x is his consumption of x and w is his consumption of w.

A) Henry's preferences are nonconvex. B) Henry's indifference curves are straight lines. C) Henry has a bliss point. D) Henry's indifference curves are hyperbolas. E) None of the above. A) Henry's preferences are nonconvex. B) Henry's indifference curves are straight lines. C) Henry has a bliss point. D) Henry's indifference curves are hyperbolas. E) None of the above.

Janet consumes x1 and x2 together in fixed proportions. She always consumes 2 units of x1 for every unit x2. One utility function that describes her preferences is

A) U(x1, x2) = 2x1x2. B) U(x1, x2) = 2x1 + x2. C) U(x1, x2) = x1 + 2x2. D) U(x1, x2) = min{ 2x1, x2}. E) U(x1, x2) = min{x1, 2x2}. A) U(x1, x2) = 2x1x2. B) U(x1, x2) = 2x1 + x2. C) U(x1, x2) = x1 + 2x2. D) U(x1, x2) = min{ 2x1, x2}. E) U(x1, x2) = min{x1, 2x2}.

Oswald Odd consumes only goods 1 and 2. His utility function is U(x1, x2) = x1 + x2 + min{x1, x2}. Each of Oswald's indifference curves is

A) L-shaped. B) made up of three line segments with slopes -2, -1, and -. C) made up of two line segments with slopes -2 and -. D) is smooth and has no kinks. E) is a diamond-shaped figure consisting of four line segments. A) L-shaped. B) made up of three line segments with slopes -2, -1, and -. C) made up of two line segments with slopes -2 and -. D) is smooth and has no kinks. E) is a diamond-shaped figure consisting of four line segments.

Exam 3: Utility

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Joe Bob's cousin Leonard consumes goods 1 and 2. Leonard thinks that 2 units of good 1 is always a perfect substitute for 3 units of good 2. Which of the following utility functions is the only one that would not represent Leonard's preferences?

(Multiple Choice)

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Question 21

Jeans utility function is U(x, y) = x + y 2 - y. If we draw her indifference curves with x on the horizontal axis and y on the vertical axis, then these indifference curves are everywhere downward sloping and get flatter as one moves from left to right.

(True/False)

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Question 22

Henry's utility function is x² + 16xw + 64w², where x is his consumption of x and w is his consumption of w.

(Multiple Choice)

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Question 23

A consumer has a utility function of the form U(x, y) =x a + y b, where both a and b are nonnegative. What additional restrictions on the values of the parameters a and b are imposed by each of the following assumptions? a. Preferences are quasilinear and convex, and x is a normal good. b. Preferences are homothetic. c. Preferences are homothetic and convex. d. Goods x and y are perfect substitutes.

(Essay)

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Question 24

Angela's utility function is U(x₁, x₂) = (x₁ + x₂)³. Her indifference curves are downward-sloping, parallel straight lines.

(True/False)

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Question 25

Janet consumes x₁and x₂together in fixed proportions. She always consumes 2 units of x₁ for every unit x₂. One utility function that describes her preferences is

(Multiple Choice)

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Question 26

Henrietta's utility function is U(x₁, x₂) = x₁x₂. She has diminishing marginal rate of substitution between goods 1 and 2.

(True/False)

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Question 27

Ike's utility function is U(x, y) = xy. Ike consumes 2 units of x and 8 units of y.

(Multiple Choice)

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Question 28

Harry Mazzola has the utility function U(x₁, x₂) = min{x₁ + 2x₂, 2x₁ + x₂}. He has $40 to spend on corn chips and french fries. If the price of corn chips is $1 per unit and the price of french fries is $4, then Harry will

(Multiple Choice)

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Question 29

Charles's utility function is U(x, y) = xy. Anne's utility function is U(x, y) = 1,000xy. Diana's utility function is -xy. Elizabeth's utility function is . Fergie's utility function is xy - 10,000. Margaret's utility function is . Philip's utility function is x(y + 1). (The goods x and y are two very expensive goods. We leave you to speculate about what they are.) Which of these persons have the same preferences as Charles?

(Multiple Choice)

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Question 30

Tim has preferences represented by the utility function U(x, y) = min{ 6x + y, x + 2y}. If x is on the horizontal axis and y is on the vertical axis, what is the slope of his indifference curve at the point (8, 9)?

(Multiple Choice)

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Question 31

Quasilinear preferences are homothetic when the optimal amount of good 1 is not affordable.

(True/False)

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Question 32

Ambrose has the utility function . If Ambrose is initially consuming 25 units of nuts and 17 units of berries, then what is the largest number of berries that he would be willing to give up in return for an additional 39 units of nuts?

(Multiple Choice)

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Question 33

Jim's utility function is U(x, y) = xy. Jerry's utility function is U(x, y) = 1,000xy + 2,000. Tammy's utility function is U(x, y) = xy(1 - xy). Oral's utility function is . Marjoe's utility function is U(x, y) = x(y + 1,000). Pat's utility function is U(x, y) = 0.5xy - 10,000. Billy's utility function is U(x, y) = . Francis's utility function is U(x, y) = -xy. a. Who has the same preferences as Jim? b. Who has the same indifference curves as Jim? c. Explain why the answers to (a) and (b) differ.

(Essay)

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Question 34

If one utility function is a monotonic transformation of another, then the former must assign a higher utility number to every bundle than the latter.

(True/False)

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Question 35

Oswald Odd consumes only goods 1 and 2. His utility function is U(x₁, x₂) = x₁ + x₂ + min{x₁, x₂}. Each of Oswald's indifference curves is

(Multiple Choice)

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Question 36

Ambrose has the utility function . If Ambrose is initially consuming 64 units of nuts and 10 units of berries, then what is the largest number of berries that he would be willing to give up in return for an additional 17 units of nuts?

(Multiple Choice)

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Question 37

Mac's utility function is U(x, y) = max{ 2x - y, 2y - x}.

(Multiple Choice)

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Question 38

Alice's utility function is U(x, y) = x²y. Steve's utility function is U(x, y) = x²y + 2x. Alice and Steve have the same preferences since Steve's utility function is a monotonic transformation of Alice's.

(True/False)

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Question 39

Maximilian consumes two goods, x and y. His utility function is U(x, y) = max{x, y}. Therefore x and y are perfect substitutes for Max.

(True/False)

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Question 40

Showing 21 - 40 of 57

Exam 3: Utility

Joe Bob's cousin Leonard consumes goods 1 and 2. Leonard thinks that 2 units of good 1 is always a perfect substitute for 3 units of good 2. Which of the following utility functions is the only one that would not represent Leonard's preferences?

Jeans utility function is U(x, y) = x + y 2 - y. If we draw her indifference curves with x on the horizontal axis and y on the vertical axis, then these indifference curves are everywhere downward sloping and get flatter as one moves from left to right.

Henry's utility function is x2 + 16xw + 64w2, where x is his consumption of x and w is his consumption of w.

Angela's utility function is U(x1, x2) = (x1 + x2)3. Her indifference curves are downward-sloping, parallel straight lines.

Janet consumes x1 and x2 together in fixed proportions. She always consumes 2 units of x1 for every unit x2. One utility function that describes her preferences is

Henrietta's utility function is U(x1, x2) = x1x2. She has diminishing marginal rate of substitution between goods 1 and 2.

Ike's utility function is U(x, y) = xy. Ike consumes 2 units of x and 8 units of y.

Harry Mazzola has the utility function U(x1, x2) = min{x1 + 2x2, 2x1 + x2}. He has $40 to spend on corn chips and french fries. If the price of corn chips is $1 per unit and the price of french fries is $4, then Harry will

Tim has preferences represented by the utility function U(x, y) = min{ 6x + y, x + 2y}. If x is on the horizontal axis and y is on the vertical axis, what is the slope of his indifference curve at the point (8, 9)?

Quasilinear preferences are homothetic when the optimal amount of good 1 is not affordable.

Ambrose has the utility function . If Ambrose is initially consuming 25 units of nuts and 17 units of berries, then what is the largest number of berries that he would be willing to give up in return for an additional 39 units of nuts?

If one utility function is a monotonic transformation of another, then the former must assign a higher utility number to every bundle than the latter.

Oswald Odd consumes only goods 1 and 2. His utility function is U(x1, x2) = x1 + x2 + min{x1, x2}. Each of Oswald's indifference curves is

Ambrose has the utility function . If Ambrose is initially consuming 64 units of nuts and 10 units of berries, then what is the largest number of berries that he would be willing to give up in return for an additional 17 units of nuts?

Mac's utility function is U(x, y) = max{ 2x - y, 2y - x}.

Alice's utility function is U(x, y) = x2y. Steve's utility function is U(x, y) = x2y + 2x. Alice and Steve have the same preferences since Steve's utility function is a monotonic transformation of Alice's.

Maximilian consumes two goods, x and y. His utility function is U(x, y) = max{x, y}. Therefore x and y are perfect substitutes for Max.

Budget Constraint

A: Budget Constraint

Preferences

A: Preferences

A: Utility

Choice

A: Choice

Demand

A: Demand

Revealed Preference

A: Revealed Preference

Slutsky Equation

A: Slutsky Equation

Buying and Selling

A: Buying and Selling

Intertemporal Choice

A: Intertemporal Choice

Asset Markets

A: Asset Markets

Uncertainty

A: Uncertainty

Risky Assets

A: Risky Assets

Consumers Surplus

A: Consumers Surplus

Market Demand

A: Market Demand

Equilibrium

A: Equilibrium

Auctions

A: Auctions

Technology

A: Technology

Profit Maximization

A: Profit Maximization

Cost Minimization

A: Cost Minimization

Cost Curves

A: Cost Curves

Firm Supply

A: Firm Supply

Industry Supply

A: Industry Supply

Monopoly

A: Monopoly

Monopoly Behavior

A: Monopoly Behavior

Factor Markets

A: Factor Markets

Oligopoly

A: Oligopoly

Game Theory

A: Game Theory

Game Applications

A: Game Applications

Behavioral Economics

Exchange

A: Exchange

Production

A: Production

Welfare

A: Welfare

Henry's utility function is x² + 16xw + 64w², where x is his consumption of x and w is his consumption of w.

Angela's utility function is U(x₁, x₂) = (x₁ + x₂)³. Her indifference curves are downward-sloping, parallel straight lines.

Janet consumes x₁and x₂together in fixed proportions. She always consumes 2 units of x₁ for every unit x₂. One utility function that describes her preferences is

Henrietta's utility function is U(x₁, x₂) = x₁x₂. She has diminishing marginal rate of substitution between goods 1 and 2.

Harry Mazzola has the utility function U(x₁, x₂) = min{x₁ + 2x₂, 2x₁ + x₂}. He has $40 to spend on corn chips and french fries. If the price of corn chips is $1 per unit and the price of french fries is $4, then Harry will

Oswald Odd consumes only goods 1 and 2. His utility function is U(x₁, x₂) = x₁ + x₂ + min{x₁, x₂}. Each of Oswald's indifference curves is

Alice's utility function is U(x, y) = x²y. Steve's utility function is U(x, y) = x²y + 2x. Alice and Steve have the same preferences since Steve's utility function is a monotonic transformation of Alice's.