Exam 4: The Theory of Individual Behavior

Suppose a consumer has M = $200 to spend on two goods, X and Y.If the per-unit prices of X and Y are respectively given by P_X = $2 and P_Y = $4, then to maximize utility subject to a budget constraint can be solved by form which of the following Lagrangian?

(Multiple Choice)

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Question 81

Clothing stores frequently run "sales" where they discount clothing prices by as much as 25 percent.What impact, if any, would you expect these "sales" to have on a store that specializes in selling shoes produced by Rockport?

(Essay)

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Question 82

A stockholder named Sue must cast a vote for chair of the board.Sue prefers Mr.Lee to Ms.Doe, Ms.Doe to Mr.James, and Mr.James to Mr.Lee. a.Are Sue's preferences consistent with our assumptions about consumer behavior? Explain. b.If all stockholders had the same preferences as Sue, who would win the appointment as chair of the board? Explain.

(Essay)

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Question 83

The property that implies that indifference curves are convex to the origin is:

(Multiple Choice)

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Question 84

Given that income is $500 and P_X = $20 and P_Y = $5, what is the market rate of substitution between goods X and Y?

(Multiple Choice)

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Question 85

Airlines give away millions of tickets each year through their frequent flyer programs, with the typical airline awarding a free ticket for each 25,000 miles flown on the airline.The average airline ticket costs $500 and is for a 2,500-mile round trip.Given this information, evaluate the following statement: Airlines could have the same effect on demand by eliminating their frequent flyer programs and simply lowering the average ticket price by 10 percent.

(Essay)

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Question 86

Many gourmet shops go out of business during recessions since they sell almost exclusively

(Multiple Choice)

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Question 87

Most workers view leisure and income as

(Multiple Choice)

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Question 88

Suppose that three consumers are in the market for good X.Consumer 1's (inverse) P_X = 20 - Q_X; Consumer 2's (inverse) demand is P_X = 20 - 2Q_X; and Consumer 3's (inverse) demand is P_X = 20 - 4Q_X.When P_X = $10, the market will demand

(Multiple Choice)

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Question 89

The total earnings of a worker are represented by E = 100 + $10(24 - L), where E is earnings and L is the number of hours of leisure.How many hours of leisure are consumed if this worker's total earnings are $160?

(Multiple Choice)

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Question 90

Suppose earnings are given by E = $50 + $20(24 - L), where E is earnings and L is the hours of leisure.What is the price to the worker of consuming an additional hour of leisure?

(Multiple Choice)

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Question 91

If you sell an inferior good, offering to sell gift certificates to those looking for a gift may result in

(Multiple Choice)

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Question 92

If you include in your offerings some inferior goods, the demand for these products will increase

(Multiple Choice)

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Question 93

What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and P_x = $5, P_y = $10, X = 20, and M = 500?

(Multiple Choice)

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Question 94

Managers can get workers to work longer hours by:

(Multiple Choice)

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Question 95

If sugar and Nutrasweet are substitutes, then we can be certain that a decrease in the price of sugar will lead to an increase in the consumption of

(Multiple Choice)

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Question 96

If you are in the business of selling chicken and the price of selling chicken and the price of beef both were to drop dramatically, what should you do with your inventory level of chicken?

(Multiple Choice)

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Question 97

Suppose earnings are given by E = $60 + $7(24 - L), where E is earnings and L is the hours of leisure.The fixed payment for this worker is:

(Multiple Choice)

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Question 98

A firm manager with vertical indifference curves (output on the horizontal axis, profit on the vertical axis) views

(Multiple Choice)

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Question 99

Consumers adjust their purchasing behavior so that:

(Multiple Choice)

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Question 100

Showing 81 - 100 of 174

Suppose a consumer has M = $200 to spend on two goods, X and Y.If the per-unit prices of X and Y are respectively given by P_X = $2 and P_Y = $4, then to maximize utility subject to a budget constraint can be solved by form which of the following Lagrangian?

Clothing stores frequently run "sales" where they discount clothing prices by as much as 25 percent.What impact, if any, would you expect these "sales" to have on a store that specializes in selling shoes produced by Rockport?

The property that implies that indifference curves are convex to the origin is:

Given that income is $500 and P_X = $20 and P_Y = $5, what is the market rate of substitution between goods X and Y?

Many gourmet shops go out of business during recessions since they sell almost exclusively

Most workers view leisure and income as

Suppose that three consumers are in the market for good X.Consumer 1's (inverse) P_X = 20 - Q_X; Consumer 2's (inverse) demand is P_X = 20 - 2Q_X; and Consumer 3's (inverse) demand is P_X = 20 - 4Q_X.When P_X = $10, the market will demand

The total earnings of a worker are represented by E = 100 + $10(24 - L), where E is earnings and L is the number of hours of leisure.How many hours of leisure are consumed if this worker's total earnings are $160?

Suppose earnings are given by E = $50 + $20(24 - L), where E is earnings and L is the hours of leisure.What is the price to the worker of consuming an additional hour of leisure?

If you sell an inferior good, offering to sell gift certificates to those looking for a gift may result in

If you include in your offerings some inferior goods, the demand for these products will increase

What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and P_x = $5, P_y = $10, X = 20, and M = 500?

Managers can get workers to work longer hours by:

If sugar and Nutrasweet are substitutes, then we can be certain that a decrease in the price of sugar will lead to an increase in the consumption of

If you are in the business of selling chicken and the price of selling chicken and the price of beef both were to drop dramatically, what should you do with your inventory level of chicken?

Suppose earnings are given by E = $60 + $7(24 - L), where E is earnings and L is the hours of leisure.The fixed payment for this worker is:

A firm manager with vertical indifference curves (output on the horizontal axis, profit on the vertical axis) views

Consumers adjust their purchasing behavior so that:

The Fundamentals of Managerial Economics

Market Forces: Demand and Supply

Quantitative Demand Analysis

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

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Exam 4: The Theory of Individual Behavior

Suppose a consumer has M = $200 to spend on two goods, X and Y.If the per-unit prices of X and Y are respectively given by PX = $2 and PY = $4, then to maximize utility subject to a budget constraint can be solved by form which of the following Lagrangian?

Clothing stores frequently run "sales" where they discount clothing prices by as much as 25 percent.What impact, if any, would you expect these "sales" to have on a store that specializes in selling shoes produced by Rockport?

The property that implies that indifference curves are convex to the origin is:

Given that income is $500 and PX = $20 and PY = $5, what is the market rate of substitution between goods X and Y?

Many gourmet shops go out of business during recessions since they sell almost exclusively

Most workers view leisure and income as

Suppose that three consumers are in the market for good X.Consumer 1's (inverse) PX = 20 - QX; Consumer 2's (inverse) demand is PX = 20 - 2QX; and Consumer 3's (inverse) demand is PX = 20 - 4QX.When PX = $10, the market will demand

The total earnings of a worker are represented by E = 100 + $10(24 - L), where E is earnings and L is the number of hours of leisure.How many hours of leisure are consumed if this worker's total earnings are $160?

Suppose earnings are given by E = $50 + $20(24 - L), where E is earnings and L is the hours of leisure.What is the price to the worker of consuming an additional hour of leisure?

If you sell an inferior good, offering to sell gift certificates to those looking for a gift may result in

If you include in your offerings some inferior goods, the demand for these products will increase

What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and Px = $5, Py = $10, X = 20, and M = 500?

Managers can get workers to work longer hours by:

If sugar and Nutrasweet are substitutes, then we can be certain that a decrease in the price of sugar will lead to an increase in the consumption of

If you are in the business of selling chicken and the price of selling chicken and the price of beef both were to drop dramatically, what should you do with your inventory level of chicken?

Suppose earnings are given by E = $60 + $7(24 - L), where E is earnings and L is the hours of leisure.The fixed payment for this worker is:

A firm manager with vertical indifference curves (output on the horizontal axis, profit on the vertical axis) views

Consumers adjust their purchasing behavior so that:

The Fundamentals of Managerial Economics

Market Forces: Demand and Supply

Quantitative Demand Analysis

The Production Process and Costs

The Organization of the Firm

The Nature of Industry

Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Basic Oligopoly Models

Game Theory: Inside Oligopoly

Pricing Strategies for Firms With Market Power

The Economics of Information

Advanced Topics in Business Strategy

A Managers Guide to Government in the Marketplace

Filters

Suppose a consumer has M = $200 to spend on two goods, X and Y.If the per-unit prices of X and Y are respectively given by P_X = $2 and P_Y = $4, then to maximize utility subject to a budget constraint can be solved by form which of the following Lagrangian?

Given that income is $500 and P_X = $20 and P_Y = $5, what is the market rate of substitution between goods X and Y?

Suppose that three consumers are in the market for good X.Consumer 1's (inverse) P_X = 20 - Q_X; Consumer 2's (inverse) demand is P_X = 20 - 2Q_X; and Consumer 3's (inverse) demand is P_X = 20 - 4Q_X.When P_X = $10, the market will demand

What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available for purchase and P_x = $5, P_y = $10, X = 20, and M = 500?