Question 1

if you have an income of $16 to spend, if commodity 1 costs $2 per unit, and if commodity 2 costs $4 per unit, then the equation for your budget line can be written

Accepted Answer

A) x1  +2x2 = 8. 
B) 3x1 + 5x2 = 17. 
C) (x1  + x2)/6 = 16 
D) x1/2 + x2/4 = 16. 
E) 6(x1 + x2) = 16. 
A) x1  +2x2 = 8. 
B) 3x1 + 5x2 = 17. 
C) (x1  + x2)/6 = 16 
D) x1/2 + x2/4 = 16. 
E) 6(x1 + x2) = 16. A

Question 2

In the economy of Mungo, there is a third person called Ike.Ike has a red income of 88 and a blue income of 30.Recall that blue prices are 1 bcu (blue currency unit)per unit of ambrosia and 1 bcu per unit of bubble gum.Red prices are 2 rcus (red currency units per unit of ambrosia and 6 rcus per unit of bubble gum.You have to pay twice for what you buy, once in red currency, once in blue currency.If Ike spends all of his blue income but not all of his red income, he must consume

Accepted Answer

A) at least 23 units of ambrosia. 
B) exactly twice as much bubble gum as ambrosia. 
C) at least 17 units of bubble gum. 
D) at least 7 units of bubble gum. 
E) equal amounts of ambrosia and bubble gum. 
A) at least 23 units of ambrosia. 
B) exactly twice as much bubble gum as ambrosia. 
C) at least 17 units of bubble gum. 
D) at least 7 units of bubble gum. 
E) equal amounts of ambrosia and bubble gum. A

Question 3

if you could exactly afford either 2 units of x and 7 units of y, or 4 units of x and 3 units of y, then if you spent all of your income on y, how many units of y could you buy?

Accepted Answer

A) 11 
B) 7 
C) 15 
D) 6 
E) None of the above. 
A) 11 
B) 7 
C) 15 
D) 6 
E) None of the above. A

Question 4

Edmund must pay $6 each for punk rock video cassettes.If Edmund is paid $48 per sack for accepting garbage and if his relatives send him an allowance of $432, then his budget line is described by the equation

Accepted Answer

A) 6V = 48G. 
B) 6V + 48G = 432. 
C) 6V - 48G = 432 
D) 6V = 432 - G 
E) None of the above. 
A) 6V = 48G. 
B) 6V + 48G = 432. 
C) 6V - 48G = 432 
D) 6V = 432 - G 
E) None of the above.

Question 5

if you have an income of $18 to spend, if commodity 1 cost $3 per unit, and if commodity 2 costs $9 per unit, then the equation for your budget line can be written

Accepted Answer

A) x1/3 + x2/9 = 18. 
B) (x1 + x2)/12 = 18. 
C) x1 + 3x2 = 6. 
D) 4x1 + 10x2 = 19. 
E) 12(x1 +x2) = 18. 
A) x1/3 + x2/9 = 18. 
B) (x1 + x2)/12 = 18. 
C) x1 + 3x2 = 6. 
D) 4x1 + 10x2 = 19. 
E) 12(x1 +x2) = 18.

Question 6

Murphy used to consume 100 units of X and 50 units of Y when the price of X was $2 and the price of Y was $4.If the price of X rose to $6 and the price of Y rose to $6, how much would Murphy's income have to rise so that he could still afford his original bundle?

Accepted Answer

A) $300 
B) $900 
C) $600 
D) $500 
E) None of the above. 
A) $300 
B) $900 
C) $600 
D) $500 
E) None of the above.

Question 7

if in the same amount of time that it takes her to read 40 pages of economics and 30 pages of sociology, Martha could read 20 pages of economics and 110 pages of sociology, then which of these equations describes combinations of pages of economics, E, and sociology, S, that she could read in the time it takes to read 40 pages of economics and 30 pages of sociology?

Accepted Answer

A) E + S = 130. 
B) E/2 + S = 50. 
C) E + S = 70. 
D) 4E + S = 190. 
E) All of the above. 
A) E + S = 130. 
B) E/2 + S = 50. 
C) E + S = 70. 
D) 4E + S = 190. 
E) All of the above.

Question 8

Edmund must pay $6 each for punk rock video cassettes.If Edmund is paid $36 per sack for accepting garbage and if his relatives send him an allowance of $360, then his budget line is described by the equation

Accepted Answer

A) 6V + 36G = 360. 
B) 6V - 36G = 360. 
C) 6V = 360 - G. 
D) 6V = 36G. 
E) None of the above. 
A) 6V + 36G = 360. 
B) 6V - 36G = 360. 
C) 6V = 360 - G. 
D) 6V = 36G. 
E) None of the above.

Question 9

In the economy of Mungo, there is a third person called Ike.Ike has a red income of 56 and a blue income of 10.Recall that blue prices are 1 bcu (blue currency unit)per unit of ambrosia and 1 bcu per unit of bubble gum.Red prices are 2 rcus (red currency units per unit of ambrosia and 6 rcus per unit of bubble gum.You have to pay twice for what you buy, once in red currency, once in blue currency.If Ike spends all of his blue income but not all of his red income, he must consume

Accepted Answer

A) at least 9 units of bubble gum. 
B) at least 17 units of bubble gum. 
C) exactly twice as much bubble gum as ambrosia. 
D) at least 1 unit of ambrosia. 
E) equal amounts of ambrosia and bubble gum. 
A) at least 9 units of bubble gum. 
B) at least 17 units of bubble gum. 
C) exactly twice as much bubble gum as ambrosia. 
D) at least 1 unit of ambrosia. 
E) equal amounts of ambrosia and bubble gum.

Question 10

In the economy of Mungo, there is a third person called Ike.Ike has a red income of 104 and a blue income of 30.Recall that blue prices are 1 bcu (blue currency unit)per unit of ambrosia and 1 bcu per unit of bubble gum.Red prices are 2 rcus (red currency units)per unit of ambrosia and 6 rcus per unit of bubble gum.You have to pay twice for what you buy, once in red currency, once in blue currency.If Ike spends all of his blue income but not all of his red income, he must consume

Accepted Answer

A) at least 19 units of ambrosia. 
B) at least 11 units of bubble gum. 
C) exactly twice as much bubble gum as ambrosia. 
D) at least 21 units of bubble gum. 
E) equal amounts of ambrosia and bubble gum. 
A) at least 19 units of ambrosia. 
B) at least 11 units of bubble gum. 
C) exactly twice as much bubble gum as ambrosia. 
D) at least 21 units of bubble gum. 
E) equal amounts of ambrosia and bubble gum.

Question 11

if you could exactly afford either 4 units of x and 8 units of y, or 6 units of x and 2 units of y, then if you spent all of your income on y, how many units of y could you buy?

Accepted Answer

A) 20 
B) 26 
C) 10 
D) 14 
E) None of the above. 
A) 20 
B) 26 
C) 10 
D) 14 
E) None of the above.

Question 12

if you could exactly afford either 2 units of x and 11 units of y, or 4 units of x and 7 units of y, then if you spent all of your income on y, how many units of y could you buy?

Accepted Answer

A) 19 
B) 15 
C) 11 
D) 6 
E) None of the above. 
A) 19 
B) 15 
C) 11 
D) 6 
E) None of the above.

Question 13

ads in the boring business magazine are read by 300 lawyers and 1,000 M.B.A.s.Ads in the consumer publication are read by 250 lawyers and 300 M.B.A.s.If Harry had $2,250 to spend on advertising, if the price of ads in the boring business magazine were $300, and if the price of ads in the consumer magazine were $150, then the combinations of recent M.B.A.s and lawyers with hot tubs whom he could reach with his advertising budget would be represented by the integer values along a line segment that runs between the two points

Accepted Answer

A) (3, 750, 4, 500)and (2, 250, 7, 500). 
B) (0, 4, 500)and (2, 250, 0). 
C) (4, 500, 0)and (0, 9, 000). 
D) (4, 500, 5, 250)and (2, 250, 9, 000). 
E) (3, 000, 0)and (0, 7, 500). 
A) (3, 750, 4, 500)and (2, 250, 7, 500). 
B) (0, 4, 500)and (2, 250, 0). 
C) (4, 500, 0)and (0, 9, 000). 
D) (4, 500, 5, 250)and (2, 250, 9, 000). 
E) (3, 000, 0)and (0, 7, 500).

Question 14

if in the same amount of time that it takes her to read 40 pages of economics and 30 pages of sociology, Martha could read 20 pages of economics and 90 pages of sociology, then which of these equations describes combinations of pages of economics, E, and sociology, S, that she could read in the time it takes to read 40 pages of economics and 30 pages of sociology?

Accepted Answer

A) E + S = 110. 
B) E/2 + S = 50. 
C) 3E + S = 150. 
D) E + S = 70. 
E) All of the above. 
A) E + S = 110. 
B) E/2 + S = 50. 
C) 3E + S = 150. 
D) E + S = 70. 
E) All of the above.

Question 15

if you have an income of $80 to spend, if commodity 1 costs $4 per unit, and if commodity 2 costs $16 per unit, then the equation for your budget line can be written

Accepted Answer

A) x1 + 4x2 = 20. 
B) (x1 + x2)/20 = 80. 
C) x1/4 + x2/16 = 80. 
D) 5x1 + 17x2 = 81. 
E) 20(x1 + x2) = 80. 
A) x1 + 4x2 = 20. 
B) (x1 + x2)/20 = 80. 
C) x1/4 + x2/16 = 80. 
D) 5x1 + 17x2 = 81. 
E) 20(x1 + x2) = 80.

Question 16

ads in the boring business magazine are read by 300 lawyers and 1,000 M.B.A.s.Ads in the consumer publication are read by 250 lawyers and 300 M.B.A.s.If Harry had $4,200 to spend on advertising, if the price of ads in the boring business magazine were $700, and if the price of ads in the consumer magazine were $350, then the combinations of recent M.B.A.s and lawyers with hot tubs whom he could reach with his advertising budget would be represented by the integer values along a line segment that runs between the two points

Accepted Answer

A) (3, 600, 0)and (0, 7, 200). 
B) (3, 000, 3, 600)and (1, 800, 6, 000). 
C) (0, 3, 600)and (1, 800, 0). 
D) (3, 600, 4, 200)and (1, 800, 7, 200). 
E) (2, 400, 0)and (0, 6, 000). 
A) (3, 600, 0)and (0, 7, 200). 
B) (3, 000, 3, 600)and (1, 800, 6, 000). 
C) (0, 3, 600)and (1, 800, 0). 
D) (3, 600, 4, 200)and (1, 800, 7, 200). 
E) (2, 400, 0)and (0, 6, 000).

Question 17

if you have an income of $30 to spend, if commodity 1 costs $5 per unit, and if commodity 2 costs $10 per unit, then the equation for your budget line can be written

Accepted Answer

A) 6x1 + 11x2 = 31. 
B) (x1 + x2)/15 = 30. 
C) x1 + 2x2 = 6. 
D) x1/5 + x2/10 = 30. 
E) 15(x1 + x2) = 30. 
A) 6x1 + 11x2 = 31. 
B) (x1 + x2)/15 = 30. 
C) x1 + 2x2 = 6. 
D) x1/5 + x2/10 = 30. 
E) 15(x1 + x2) = 30.

Question 18

Edmund must pay $6 each for punk rock video cassettes.If Edmund is paid $18 per sack for accepting garbage and if his relatives send him an allowance of $180, then his budget line is described by the equation

Accepted Answer

A) 6V - 18G = 180. 
B) 6V = 180 - G. 
C) 6V + 18G = 180. 
D) 6V = 18G. 
E) None of the above. 
A) 6V - 18G = 180. 
B) 6V = 180 - G. 
C) 6V + 18G = 180. 
D) 6V = 18G. 
E) None of the above.

Question 19

if in the same amount of time that it takes her to read 40 pages of economics and 30 pages of sociology, Martha could read 10 pages of economics and 90 pages of sociology, then which of these equations describes combinations of pages of economics, E, and sociology, S, that she could read in the time it takes to read 40 pages of economics and 30 pages of sociology?

Accepted Answer

A) E + S = 70. 
B) E/2 + S = 50. 
C) 2E + S = 110. 
D) E + S = 100. 
E) All of the above. 
A) E + S = 70. 
B) E/2 + S = 50. 
C) 2E + S = 110. 
D) E + S = 100. 
E) All of the above.

Question 20

ads in the boring business magazine are read by 300 lawyers and 1,000 M.B.A.s.Ads in the consumer publication are read by 250 lawyers and 300 M.B.A.s.If Harry had $3,250 to spend on advertising, if the price of ads in the boring business magazine were $500, and if the price of ads in the consumer magazine were $250, then the combinations of recent M.B.A.s and lawyers with hot tubs whom he could reach with his advertising budget would be represented by the integer values along a line segment that runs between the two points

Accepted Answer

A) (3, 900, 0)and (0, 7, 800). 
B) (3, 250, 3, 900)and (1, 950, 6, 500). 
C) (0, 3, 900)and (1, 950, 0). 
D) (3, 900, 4, 550)and (1, 950, 7, 800). 
E) (2, 600, 0)and (0, 6, 500). 
A) (3, 900, 0)and (0, 7, 800). 
B) (3, 250, 3, 900)and (1, 950, 6, 500). 
C) (0, 3, 900)and (1, 950, 0). 
D) (3, 900, 4, 550)and (1, 950, 7, 800). 
E) (2, 600, 0)and (0, 6, 500).

Exam 1: Budget Constraint-Part B

if you have an income of $16 to spend, if commodity 1 costs $2 per unit, and if commodity 2 costs $4 per unit, then the equation for your budget line can be written

if you could exactly afford either 2 units of x and 7 units of y, or 4 units of x and 3 units of y, then if you spent all of your income on y, how many units of y could you buy?

Edmund must pay $6 each for punk rock video cassettes.If Edmund is paid $48 per sack for accepting garbage and if his relatives send him an allowance of $432, then his budget line is described by the equation

if you have an income of $18 to spend, if commodity 1 cost $3 per unit, and if commodity 2 costs $9 per unit, then the equation for your budget line can be written

Murphy used to consume 100 units of X and 50 units of Y when the price of X was $2 and the price of Y was $4.If the price of X rose to $6 and the price of Y rose to $6, how much would Murphy's income have to rise so that he could still afford his original bundle?

Edmund must pay $6 each for punk rock video cassettes.If Edmund is paid $36 per sack for accepting garbage and if his relatives send him an allowance of $360, then his budget line is described by the equation

if you could exactly afford either 4 units of x and 8 units of y, or 6 units of x and 2 units of y, then if you spent all of your income on y, how many units of y could you buy?

if you could exactly afford either 2 units of x and 11 units of y, or 4 units of x and 7 units of y, then if you spent all of your income on y, how many units of y could you buy?

if you have an income of $80 to spend, if commodity 1 costs $4 per unit, and if commodity 2 costs $16 per unit, then the equation for your budget line can be written

if you have an income of $30 to spend, if commodity 1 costs $5 per unit, and if commodity 2 costs $10 per unit, then the equation for your budget line can be written

Edmund must pay $6 each for punk rock video cassettes.If Edmund is paid $18 per sack for accepting garbage and if his relatives send him an allowance of $180, then his budget line is described by the equation

Budget Constraint-Part A

Preferences-Part A

Preferences-Part B

Utility-Part A

Utility-Part B

Choice-Part A

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

Public Goods-Part A

Public Goods-Part B