Exam 6: Revealed Preference-Part B

Let us reconsider the case of Ronald in Problem 4.Let the prices and consumptions in the base year be as in situation D, where p₁ = $3, p₂ = $1, x₁ = 5, and x₂ = 15.If in the current year, the price of good 1 is $1 and the price of good 2 is $2, and his current consumptions of good 1 and good 2 are 25 and 20 respectively, what is the Laspeyres price index of current prices relative to base year prices? (Pick the most nearly correct answer.)

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Question 1

Correct Answer:

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if situation D is p = (3, 1)and x = (5, 10),

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Question 2

Correct Answer:

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On the planet Homogenia every consumer who has ever lived consumes only two goods, x and y, and has the utility function U(x, y)= xy.The currency in Homogenia is the fragel.In this country in 1900, the price of good 1 was 1 fragel and the price of good 2 was 2 fragels.Per capita income was 108 fragels.In 2000, the price of good 1 was 3 fragels and the price of good 2 was 4 fragels.The Laspeyres price index for the price level in 2000 relative to the price level in 1900 is

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Question 3

Correct Answer:

Verified

On the planet Hyperion every consumer who has ever lived has a utility function U(x, y)= min{x, 2y}.The currency of Hyperion is the doggerel.In 1850 the price of x was 1 doggerel per unit and the price of y was 2 doggerels per unit.In 2000, the price of x was 10 doggerels per unit and the price of y was 4 doggerels per unit.Paasche price index of prices in 2000 relative to prices in 1850 is

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Question 4

if the only information we had about Goldie were that she chooses the bundle (6, 6)when prices are (6, 7)and she chooses the bundle (10, 0)when prices are (1, 5), then we could conclude that

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Question 5

On the planet Hyperion every consumer who has ever lived has a utility function U(x, y)= min{x, 2y}.The currency of Hyperion is the doggerel.In 1850 the price of x was 1 doggerel per unit and the price of y was 2 doggerels per unit.In 2000, the price of x was 11 doggerels per unit and the price of y was 4 doggerels per unit.The Paasche price index of prices in 2000 relative to prices in 1850 is

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Question 6

On the planet Homogenia every consumer who has ever lived consumes only two goods, x and y, and has the utility function U(x, y)= xy.The currency in Homogenia is the fragel.In this country in 1900, the price of good 1 was 1 fragel and the price of good 2 was 2 fragels.Per capita income was 84 fragels.In 2000, the price of good 1 was 4 fragels and the price of good 2 was 2 fragels.The Laspeyres price index for the price level in 2000 relative to the price level in 1900 is

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Question 7

On the planet Homogenia every consumer who has ever lived consumes only two goods, x and y, and has the utility function U(x, y)= xy.The currency in Homogenia is the fragel.In this country in 1900, the price of good 1 was 1 fragel and the price of good 2 was 2 fragels.Per capita income was 84 fragels.In 2000, the price of good 1 was 1 fragels and the price of good 2 was 5 fragels.The Laspeyres price index for the price level in 2000 relative to the price level in 1900 is

(Multiple Choice)

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Question 8

Let us reconsider the case of Ronald in Problem 4.Let the prices and consumptions in the base year be as in situation D, where p₁ = $3, p₂ = $1, x₁ = 5, and x₂ = 15.If in the current year, the price of good 1 is $1 and the price of good 2 is $1, and his current consumptions of good 1 and good 2 are 25 and 20 respectively, what is the Laspeyres price index of current prices relative to base year prices? (Pick the most nearly correct answer.)

(Multiple Choice)

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Question 9

if the only information we had about Goldie were that she chooses the bundle (6, 6)when prices are (6, 7)and she chooses the bundle (10, 0)when prices are (2, 5), then we could conclude that

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Question 10

Let us reconsider the case of Ronald in Problem 4.Let the prices and consumptions in the base year be as in situation D, where p₁ = $3, p₂ = $1, x₁ = 5, and x₂ =15.If in the current year, the price of good 1 is $1 and the price of good 2 is $1, and his current consumptions of good 1 and good 2 are 25 and 10 respectively, what is the Laspeyres price index of current prices relative to base year prices? (Pick the most nearly correct answer.)

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Question 11

Pierre's friend Marcel lives in a town where he has to pay 3 francs per glass of wine and 5 francs per loaf of bread.Marcel consumes 9 glasses of wine and 4 loaves of bread per day.Recall that Bob has an income of $15 per day and pays $.50 per loaf of bread and $2 per glass of wine.If Bob has the same tastes as Marcel and if the only thing that either of them cares about is the consumption of bread and wine,

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Question 12

On the planet Hyperion every consumer who has ever lived has a utility function U(x, y)= min{x, 2y}.The currency of Hyperion is the doggerel.In 1850 the price of x was 1 doggerel per unit and the price of y was 2 doggerels per unit.In 2000, the price of x was 4 doggerels per unit and the price of y was 4 doggerels per unit.The Paasche price index of prices in 2000 relative to prices in 1850 is

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Question 13

if the only information we had about Goldie were that she chooses the bundle (6, 6)when prices are (6, 7)and she chooses the bundle (10, 0)when prices are (5, 5), then we could conclude that

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Question 14

Pierre's friend Henri lives in a town where he has to pay 3 francs per glass of wine and 7 francs per loaf of bread.Henri consumes 10 glasses of wine and 4 loaves of bread per day.Recall that Bob has an income of $15 per day and pays $.50 per loaf of bread and $2 per glass of wine.If Bob has the same tastes as Henri and if the only thing that either of them cares about is the consumption of bread and wine,

(Multiple Choice)

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Question 15

Let us reconsider the case of Ronald in Problem 4.Let the prices and consumptions in the base year be as in situation D, where p₁ = $3, p₂ = $1, x₁ = 5, and x₂ = 15.If in the current year, the price of good 1 is $1 and the price of good 2 is $1, and his current consumptions of good 1 and good 2 are 25 and 20 respectively, what is the Laspeyres price index of current prices relative to base year prices? (Pick the most nearly correct answer.)

(Multiple Choice)

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Question 16

Pierre's friend Henri lives in a town where he has to pay 3 francs per glass of wine and 2 francs per loaf of bread.Henri consumes 10 glasses of wine and 4 loaves of bread per day.Recall that Bob has an income of $15 per day and pays $.50 per loaf of bread and $2 per glass of wine.If Bob has the same tastes as Henri and if the only thing that either of them cares about is the consumption of bread and wine,

(Multiple Choice)

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Question 17

On the planet Homogenia every consumer who has ever lived consumes only two goods, x and y, and has the utility function U(x, y)= xy.The currency in Homogenia is the fragel.In this country in 1900, the price of good 1 was 1 fragel and the price of good 2 was 2 fragels.Per capita income was 60 fragels.In 2000, the price of good 1 was 5 fragels and the price of good 2 was 3 fragels.The Laspeyres price index for the price level in 2000 relative to the price level in 1900 is

(Multiple Choice)

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Question 18

if the only information we had about Goldie were that she chooses the bundle (6, 6)when prices are (6, 7)and she chooses the bundle (10, 0)when prices are (2, 5), then we could conclude that

(Multiple Choice)

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Question 19

Pierre's friend Jacques lives in a town where he has to pay 3 francs per glass of wine and 3 francs per loaf of bread.Jacques consumes 8 glasses of wine and 4 loaves of bread per day.Recall that Bob has an income of $15 per day and pays $.50 per loaf of bread and $2 per glass of wine.If Bob has the same tastes as Jacques and if the only thing that either of them cares about is the consumption of bread and wine,

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Question 20

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Exam 6: Revealed Preference-Part B

if situation D is p = (3, 1)and x = (5, 10),

if the only information we had about Goldie were that she chooses the bundle (6, 6)when prices are (6, 7)and she chooses the bundle (10, 0)when prices are (1, 5), then we could conclude that

if the only information we had about Goldie were that she chooses the bundle (6, 6)when prices are (6, 7)and she chooses the bundle (10, 0)when prices are (2, 5), then we could conclude that

if the only information we had about Goldie were that she chooses the bundle (6, 6)when prices are (6, 7)and she chooses the bundle (10, 0)when prices are (5, 5), then we could conclude that

if the only information we had about Goldie were that she chooses the bundle (6, 6)when prices are (6, 7)and she chooses the bundle (10, 0)when prices are (2, 5), then we could conclude that

Budget Constraint-Part A

Budget Constraint-Part B

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

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

Asymmetric Information-Part A

Asymmetric Information-Part B

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