Donald consumes goods x and y.His utility function is U(x,y)= xy3.He is endowed with 43 units of x and 7 units of y.The price of x is $1 and the price of y is $3.Find his net demand for x.

A) -27 B) 18 C) -30 D) -20 E) 59 A) -27 B) 18 C) -30 D) -20 E) 59

Exam 9:Buying and Selling-Part A

Dudley has a utility function U(C,R)= C- (12- R)²,where R is leisure and C is consumption per day.He has 16 hours per day to divide between work and leisure.If Dudley has a nonlabor income of $35 per day and is paid a wage of $6 per hour,how many hours of leisure will he choose per day?

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Question 1

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Yolanda receives a lump sum child support payment of $150 per week.She has 80 hours a week to divide between labor and leisure.She earns $5 an hour.The first $150 per week of her labor income is untaxed,but all labor income that she earns above $150 is taxed at the rate 30%.If we graph her budget line with leisure on the horizontal axis and consumption on the vertical axis,her budget line has

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Question 2

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Mr.Cog has 18 hours per day to divide between labor and leisure.His utility function is U(C,R)= CR,where C is dollars per year spent on consumption and R is hours of leisure.If he has a nonlabor income of 32 dollars per day and a wage rate of 13 dollars per hour,he will choose a combination of labor and leisure that allows him to spend

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Question 3

Correct Answer:

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Donald consumes goods x and y.His utility function is U(x,y)= xy³.He is endowed with 43 units of x and 7 units of y.The price of x is $1 and the price of y is $3.Find his net demand for x.

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Question 4

If leisure is a normal good,then an increase in nonlabor income will reduce labor supply.

(True/False)

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Question 5

Nick insists on consuming 3 times as much of y as he consumes of x (so he always has y =3x).He will consume these goods in no other ratio.The price of x is 2 times the price of y.Nick has an endowment of 20 x's and 75 y's which he can trade at the going prices.He has no other source of income.What is Nick's gross demand for x?

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Question 6

If a consumer is a buyer of some goods and a seller of others,then a change in prices will generate an extra income effect in the Slutsky equation due to the revaluation of the consumer's endowment.

(True/False)

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Question 7

Tomoko receives a lump sum child support payment of $200 per week.She has 80 hours a week to divide between labor and leisure.She earns $5 an hour.The first $100 per week of her labor income is untaxed,but all labor income that she earns above $100 is taxed at the rate 50%.If we graph her budget line with leisure on the horizontal axis and consumption on the vertical axis,her budget line has

(Multiple Choice)

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Question 8

Wendy and Mac work in fast-food restaurants.Wendy is paid $4 an hour for the first 40 hours a week that she works and $6 an hour for every hour beyond 40 hours per week.Mac gets $5 an hour no matter how many hours he works.Each has 110 hours per week to allocate between work and leisure.Each has a utility function U = cr,where c is expenditure per week on consumption and r is hours of leisure per week.Each can choose the number of hours to work.If Wendy works W hours and Mac works M hours,then

(Multiple Choice)

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Question 9

Marsha Mellow is very flexible.She consumes x and y.She says,"Give me x or give me y,I don't care.I can't tell the difference between them." She is currently endowed with 14 units of x and 3 units of y.The price of x is 3 times the price of y.Marsha can trade x and y at the going prices but has no other source of income.How many units of y will Marsha consume?

(Multiple Choice)

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Question 10

If Abishag owns 16 quinces and 15 kumquats and if the price of kumquats is 4 times the price of quinces,how many kumquats can she afford if she buys as many kumquats as she can?

(Multiple Choice)

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Question 11

Heather and Myrtle have the same tastes.Heather is paid $10 an hour and chooses to work 9 hours a day.Myrtle is paid $9 an hour for the first 8 hours she works and $18 an hour for any time she works beyond 8 hours a day.

(Multiple Choice)

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Question 12

Mr.Cog has 18 hours per day to divide between labor and leisure.His utility function is U(C,R)= CR,where C is dollars per year spent on consumption and R is hours of leisure.If he has 5 dollars of nonlabor income per day and gets a wage rate of 11 dollars per hour when he works,his budget equation,expressing combinations of consumption and leisure that he can afford to have,can be written as

(Multiple Choice)

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Question 13

If a consumer is initially endowed with a positive amount of two goods and sells some of one to get more of the other and if she has no other sources of income,then her budget line will pass through her endowment point.

(True/False)

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Question 14

Will is paid $10 an hour for the first 40 hours per week that he works.He can also work as many hours overtime as he wishes to.He is paid $15 an hour for every hour that he works beyond 40 hours a week.Leisure is a normal good for Will and he is currently working some overtime.If his hourly wage for the first 40 hours per week that he works rises to $12 and his wages for overtime remain at $15 per hour,he will choose to work

(Multiple Choice)

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Question 15

Fanny consumes x and y.The price of x is $9 and the price of y is $9.Fanny's only source of income is her endowment of 12 units of x and 12 units of y which she can buy or sell at the going prices.She plans to consume 13 units of x and 11 units of y.If the prices change to $12 for x and $12 for y,

(Multiple Choice)

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Question 16

Georgina earns 6 dollars an hour.She has no nonlabor income.She has 100 hours a week available for either labor or leisure.Her utility function is U(c,r)=cr³,where c is dollars worth of goods and r is hours of leisure.How many hours per week will she work?

(Multiple Choice)

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Question 17

Jack has a backward-bending labor supply curve.At wages of $5 an hour he chooses to work 50 hours a week.His boss wants him to work more hours per week and offers him $5 an hour for the first 50 hours per week and $7 an hour for every hour beyond 50 hours per week.Because of his backward -bending supply curve,Jack might actually choose to work fewer hours.

(True/False)

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Question 18

Jack earns 5 dollars per hour.He has 100 hours per week which he can use for either labor or leisure.The government institutes a plan in which each worker receives a $100 grant from the government but has to pay 50% of his or her labor income in taxes.If Jack's utility function is U(c,r)= cr,where c is dollars worth of consumption of goods and r is hours of leisure per week,how many hours per week will Jack choose to work?

(Multiple Choice)

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Question 19

Irene earns 8 dollars an hour.She has no nonlabor income.She has 30 hours a week available for either labor or leisure.Her utility function is U(c,r)=cr²,where c is dollars worth of goods and r is hours of leisure.How many hours per week will she work?

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Question 20

Showing 1 - 20 of 75

Exam 9:Buying and Selling-Part A

Dudley has a utility function U(C,R)= C- (12- R)2,where R is leisure and C is consumption per day.He has 16 hours per day to divide between work and leisure.If Dudley has a nonlabor income of $35 per day and is paid a wage of $6 per hour,how many hours of leisure will he choose per day?

Donald consumes goods x and y.His utility function is U(x,y)= xy3.He is endowed with 43 units of x and 7 units of y.The price of x is $1 and the price of y is $3.Find his net demand for x.

If leisure is a normal good,then an increase in nonlabor income will reduce labor supply.

If a consumer is a buyer of some goods and a seller of others,then a change in prices will generate an extra income effect in the Slutsky equation due to the revaluation of the consumer's endowment.

If Abishag owns 16 quinces and 15 kumquats and if the price of kumquats is 4 times the price of quinces,how many kumquats can she afford if she buys as many kumquats as she can?

Heather and Myrtle have the same tastes.Heather is paid $10 an hour and chooses to work 9 hours a day.Myrtle is paid $9 an hour for the first 8 hours she works and $18 an hour for any time she works beyond 8 hours a day.

If a consumer is initially endowed with a positive amount of two goods and sells some of one to get more of the other and if she has no other sources of income,then her budget line will pass through her endowment point.

Fanny consumes x and y.The price of x is $9 and the price of y is $9.Fanny's only source of income is her endowment of 12 units of x and 12 units of y which she can buy or sell at the going prices.She plans to consume 13 units of x and 11 units of y.If the prices change to $12 for x and $12 for y,

Georgina earns 6 dollars an hour.She has no nonlabor income.She has 100 hours a week available for either labor or leisure.Her utility function is U(c,r)=cr3,where c is dollars worth of goods and r is hours of leisure.How many hours per week will she work?

Irene earns 8 dollars an hour.She has no nonlabor income.She has 30 hours a week available for either labor or leisure.Her utility function is U(c,r)=cr2,where c is dollars worth of goods and r is hours of leisure.How many hours per week will she work?

Demand-Part A

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Slutsky Equation-Part B

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-Part A

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

Public Goods-Part A

Public Goods-Part B

Asymmetric Information-Part A

Asymmetric Information-Part B

Filters

Dudley has a utility function U(C,R)= C- (12- R)²,where R is leisure and C is consumption per day.He has 16 hours per day to divide between work and leisure.If Dudley has a nonlabor income of $35 per day and is paid a wage of $6 per hour,how many hours of leisure will he choose per day?

Donald consumes goods x and y.His utility function is U(x,y)= xy³.He is endowed with 43 units of x and 7 units of y.The price of x is $1 and the price of y is $3.Find his net demand for x.

Georgina earns 6 dollars an hour.She has no nonlabor income.She has 100 hours a week available for either labor or leisure.Her utility function is U(c,r)=cr³,where c is dollars worth of goods and r is hours of leisure.How many hours per week will she work?

Irene earns 8 dollars an hour.She has no nonlabor income.She has 30 hours a week available for either labor or leisure.Her utility function is U(c,r)=cr²,where c is dollars worth of goods and r is hours of leisure.How many hours per week will she work?