Wanda Littlemore's utility function is U(x, y)= x + 47y - 3y2.Her income is $107.If the price of x is $1 and the price of y is $23, how many units of good x will Wanda demand?

A) 11 B) 19 C) 0 D) 18 E) 15 A) 11 B) 19 C) 0 D) 18 E) 15

Wanda Littlemore's utility function is U(x, y)= x + 46y - 2y2.Her income is $135.If the price of x is $1 and the price of y is $18, how many units of good x will Wanda demand?

A) 5 B) 12 C) 16 D) 0 E) 9 A) 5 B) 12 C) 16 D) 0 E) 9

Exam 4: Choice-Part A

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Our old friend, Edmund Stench, of Chapter 2 loves punk rock video tapes.He has no income and therefore has to accept garbage in his backyard in return for money.Each video tape cost $2 and each sack of garbage that he accepts brings him $1.His utility function is given by U(c, g)= min{2c, 20 - g}, where c is the number of video tapes and g is the number of sacks of garbage that he gets per month.Each month he will choose to accept

(Multiple Choice)

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Question 21

Ed and Al both consume only bread and cheese.Both of them always choose to have some bread and some cheese, and both have strictly convex preferences.However, Ed likes to have a great deal of bread with a little cheese, and Al likes lots of cheese with a little bread.Both face the same prices for both goods and have chosen bundles to maximize their utilities subject to their budgets.

(Multiple Choice)

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Question 22

Badger Madison consumes only beer and sausages.His income is $100.Beer costs him $.50 per can and sausages cost $1 each.Where x is the number of cans of beer and y the number of sausages he consumes per week, Badger's utility function is U(x, y)=-[(x - 50)² + (y - 40)²].

(Multiple Choice)

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Question 23

Other things being equal, a lump sum tax is at least as good for a consumer as a sales tax that collects the same revenue from him.

(True/False)

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Question 24

Ambrose's utility function is U(x₁, x₂)=4x^1/2₁ + x₂.If the price of nuts (good 1)is $1, the price of berries (good 2)is $5, and his income is $145, how many units of nuts will Ambrose choose?

(Multiple Choice)

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Question 25

At a boundary optimum, a consumer's indifference curve must be tangent to her budget line.

(True/False)

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Question 26

Wanda Littlemore's utility function is U(x, y)= x + 47y - 3y².Her income is $107.If the price of x is $1 and the price of y is $23, how many units of good x will Wanda demand?

(Multiple Choice)

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Question 27

Mary Granola consumes apples and uglifruits.Mary's indifference curves are kinky.When she is consuming more apples than uglifruits, she is just willing to trade 3 apples for 1 uglifruit.When she is consuming more uglifruits than apples, she is just willing to trade 4 uglifruits for 1 apple.Let P₁ be the price of uglifruits and P₂ the price of apples.Mary maximizes her utility subject to her budget constraint.(Hint: Sketch one of her indifference curves.)

(Multiple Choice)

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Question 28

Mary Granola consumes tomatoes and nectarines.Mary's indifference curves are kinky.When she is consuming more tomatoes than nectarines, she is just willing to trade 3 tomatoes for 1 nectarine.When she is consuming more nectarines than tomatoes, she is just willing to trade 4 nectarines for 1 tomato.Let P₁ be the price of nectarines, and P₂ the price of tomatoes.Mary maximizes her utility subject to her budget constraint.(Hint: Sketch one of her indifference curves.)

(Multiple Choice)

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Question 29

Max has a utility function U(x, y)= 2xy + 1.The prices of x and y are both $1 and Max has an income of $20. a.How much of each good will he demand? b.A tax is placed on x so that x now costs Max $2 while his income and the price of y stay the same.How much of good x does he now demand? c.Would Max be as well off as he was before the tax if when the tax was imposed, his income rose by an amount equal to $1 times the answer to part (b)?

(Short Answer)

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Question 30

Sharon spends all of her income on peaches and strawberries.Peaches are a normal good for her.Her income increased by 20 percent and prices did not change.Her consumption of strawberries could not have increased by more than 20 percent.

(True/False)

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Question 31

The prices of goods x and y are each $1.Jane has $20 to spend and is considering choosing 10 units of x and 10 units of y.Jane has nice convex preferences and more of each good is better for her.Where x is drawn on the horizontal axis and y is drawn on the vertical axis, the slope of her indifference curve at the bundle (10, 10)is -2.

(Multiple Choice)

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Question 32

Charlie's utility function is U(x, y)= xy².His marginal rate of substitution between x and y does not change if the amount of both goods doubles.

(True/False)

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Question 33

Millie's utility function is U(x, y)=min{x, y}.She maximizes her utility subject to a budget constraint.The price of x is the same as the price of y.If the price of x rises and the price of y and her income remain constant, then her consumption of y will certainly decrease.

(True/False)

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Question 34

Mary Granola's utility function is U(x, y)= min{x + 2y, y + 2x}.Mary maximizes her utility subject to a budget constraint.If she chooses the bundle (5, 6), then the price of x must be exactly twice the price of y.

(True/False)

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Question 35

Hans has $27 which he decides to spend on x and y.Commodity x costs $16 per unit and commodity y costs $10 per unit.He has the utility function U(x, y)= 5x² +2y² and he can purchase fractional units of x and y.Hans will choose

(Multiple Choice)

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Question 36

Wanda Littlemore's utility function is U(x, y)= x + 46y - 2y².Her income is $135.If the price of x is $1 and the price of y is $18, how many units of good x will Wanda demand?

(Multiple Choice)

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Question 37

As you may know, Mungoites each have two left feet and one right foot.Their preferences for left and right shoes display perfect complementarity.Mungoites find shoes useful only in trios of two lefts and a right.The price of each type of shoe is $10 a shoe, and Mungoites consume nothing other than shoes.A Mungoite's Engel curve for right shoes has the equation

(Multiple Choice)

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Question 38

Martha's utility function is U(x, y)= min{x + 2y, 2x + y}.George's utility function is U(x, y)=min{2x + 4y, 4x + 2y}.If George and Martha have the same income and face the same prices for the goods x and y,

(Multiple Choice)

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Question 39

Which of the following could possibly change a rational consumer's demand?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 64

Exam 4: Choice-Part A

Badger Madison consumes only beer and sausages.His income is $100.Beer costs him $.50 per can and sausages cost $1 each.Where x is the number of cans of beer and y the number of sausages he consumes per week, Badger's utility function is U(x, y)=-[(x - 50)2 + (y - 40)2].

Other things being equal, a lump sum tax is at least as good for a consumer as a sales tax that collects the same revenue from him.

Ambrose's utility function is U(x1, x2)=4x1/21 + x2.If the price of nuts (good 1)is $1, the price of berries (good 2)is $5, and his income is $145, how many units of nuts will Ambrose choose?

At a boundary optimum, a consumer's indifference curve must be tangent to her budget line.

Wanda Littlemore's utility function is U(x, y)= x + 47y - 3y2.Her income is $107.If the price of x is $1 and the price of y is $23, how many units of good x will Wanda demand?

Sharon spends all of her income on peaches and strawberries.Peaches are a normal good for her.Her income increased by 20 percent and prices did not change.Her consumption of strawberries could not have increased by more than 20 percent.

Charlie's utility function is U(x, y)= xy2.His marginal rate of substitution between x and y does not change if the amount of both goods doubles.

Millie's utility function is U(x, y)=min{x, y}.She maximizes her utility subject to a budget constraint.The price of x is the same as the price of y.If the price of x rises and the price of y and her income remain constant, then her consumption of y will certainly decrease.

Mary Granola's utility function is U(x, y)= min{x + 2y, y + 2x}.Mary maximizes her utility subject to a budget constraint.If she chooses the bundle (5, 6), then the price of x must be exactly twice the price of y.

Hans has $27 which he decides to spend on x and y.Commodity x costs $16 per unit and commodity y costs $10 per unit.He has the utility function U(x, y)= 5x2 +2y2 and he can purchase fractional units of x and y.Hans will choose

Wanda Littlemore's utility function is U(x, y)= x + 46y - 2y2.Her income is $135.If the price of x is $1 and the price of y is $18, how many units of good x will Wanda demand?

Martha's utility function is U(x, y)= min{x + 2y, 2x + y}.George's utility function is U(x, y)=min{2x + 4y, 4x + 2y}.If George and Martha have the same income and face the same prices for the goods x and y,

Which of the following could possibly change a rational consumer's demand?

Budget Constraint-Part A

Budget Constraint-Part B

Preferences-Part A

Preferences-Part B

Utility-Part A

Utility-Part B

Choice-Part B

Demand-Part A

Demand-Part B

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Slutsky Equation-Part B

Buying and Selling-Part A

Buying and Selling-Part B

Intertemporal Choice-Part A

Intertemporal Choice-Part B

Asset Markets-Part A

Asset Markets-Part B

Uncertainty-Part A

Uncertainty-Part B

Risky Assets-Part A

Risky Assets-Part B

Consumers Surplus-Part A

Consumers Surplus-Part B

Market Demand-Part A

Market Demand-Part B

Equilibrium-Part A

Equilibrium-Part B

Auctions-Part A

Auctions-Part B

Technology-Part A

Technology-Part B

Profit Maximization-Part A

Profit Maximization-Part B

Cost Minimization-Part A

Cost Minimization-Part B

Cost Curves-Part A

Cost Curves-Part B

Firm Supply-Part A

Firm Supply-Part B

Industry Supply-Part A

Industry Supply-Part B

Monopoly-Part A

Monopoly-Part B

Monopoly Behavior-Part A

Monopoly Behavior-Part B

Factor Markets-Part A

Factor Markets-Part B

Oligopoly-Part A

Oligopoly-Part B

Game Theory-Part A

Game Theory-Part B

Game Applications-Part A

Game Applications-Part B

Behavioral Economics

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part A

Welfare-Part B

Externalities-Part A

Externalities-Part B

Information Technology-Part A

Information Technology-Part B

Badger Madison consumes only beer and sausages.His income is $100.Beer costs him $.50 per can and sausages cost $1 each.Where x is the number of cans of beer and y the number of sausages he consumes per week, Badger's utility function is U(x, y)=-[(x - 50)² + (y - 40)²].

Ambrose's utility function is U(x₁, x₂)=4x^1/2₁ + x₂.If the price of nuts (good 1)is $1, the price of berries (good 2)is $5, and his income is $145, how many units of nuts will Ambrose choose?

Wanda Littlemore's utility function is U(x, y)= x + 47y - 3y².Her income is $107.If the price of x is $1 and the price of y is $23, how many units of good x will Wanda demand?

Charlie's utility function is U(x, y)= xy².His marginal rate of substitution between x and y does not change if the amount of both goods doubles.

Hans has $27 which he decides to spend on x and y.Commodity x costs $16 per unit and commodity y costs $10 per unit.He has the utility function U(x, y)= 5x² +2y² and he can purchase fractional units of x and y.Hans will choose

Wanda Littlemore's utility function is U(x, y)= x + 46y - 2y².Her income is $135.If the price of x is $1 and the price of y is $18, how many units of good x will Wanda demand?