Question 1

If bundles of goods A and B lie on the same indifference curve,one can assume the individual

Accepted Answer

A) prefers bundle A to bundle B. 
B) prefers bundle B to bundle A. 
C) enjoys bundle A and B equally. 
D) bundle A contains the same goods as bundle B. 
A) prefers bundle A to bundle B. 
B) prefers bundle B to bundle A. 
C) enjoys bundle A and B equally. 
D) bundle A contains the same goods as bundle B.

Question 2

For an individual who consumes only two goods,X and Y,the opportunity cost of consuming one unit of X in terms of how much Y must be given up is reflected in

Accepted Answer

A) the individual's marginal rate of substitution. 
B) the slope of the individual's budget constraint. 
C) the slope of the individual's indifference curve. 
D) None of the above. 
A) the individual's marginal rate of substitution. 
B) the slope of the individual's budget constraint. 
C) the slope of the individual's indifference curve. 
D) None of the above.

Question 3

"If an individual is to maximize the utility received from consumption,he or she should spend all available income...." This statement assumes.

Accepted Answer

A)  that saving is impossible. 
B)  that the individual is not satiated in all goods. 
C)  that no goods are "inferior." 
D) Both a and b. 
A)  that saving is impossible. 
B)  that the individual is not satiated in all goods. 
C)  that no goods are "inferior." 
D) Both a and b.

Question 4

If people like their goods in fixed proportions,the two goods are

Accepted Answer

A) perfect substitutes 
B) perfect complements 
C) complements (but not perfect) 
D) substitutes (but not perfect) 
A) perfect substitutes 
B) perfect complements 
C) complements (but not perfect) 
D) substitutes (but not perfect)

Question 5

Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25 and that a student's beverage budget is $20 per week.If you were going to write an algebraic expression of this budget line of the form $\text { Coffee } = A + B T e a$ .B would be

Accepted Answer

A) 16 
B) 2 
C) -2 
D) -1/2 
A) 16 
B) 2 
C) -2 
D) -1/2

Question 6

Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25 and that a student's beverage budget is $20 per week.What is the most cups of tea the student could buy?

Accepted Answer

A) 20 
B) 16 
C) 10 
D) 8 
A) 20 
B) 16 
C) 10 
D) 8

Question 7

Suppose a caffeine-deprived man needs to wake up.Suppose his preferences can be described by $U = 3 \text { Coffee } + 2 \mathrm { Tea }$ .If the price of coffee is $4 and the price of tea is $1,he will buy

Accepted Answer

A) all coffee. 
B) all tea. 
C) some of both,but more coffee. 
D) some of both,but more tea. 
A) all coffee. 
B) all tea. 
C) some of both,but more coffee. 
D) some of both,but more tea.

If bundles of goods A and B lie on the same indifference curve,one can assume the individual

For an individual who consumes only two goods,X and Y,the opportunity cost of consuming one unit of X in terms of how much Y must be given up is reflected in

"If an individual is to maximize the utility received from consumption,he or she should spend all available income...." This statement assumes.

If people like their goods in fixed proportions,the two goods are

Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25 and that a student's beverage budget is $20 per week.If you were going to write an algebraic expression of this budget line of the form $\text { Coffee } = A + B T e a$ .B would be

Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25 and that a student's beverage budget is $20 per week.What is the most cups of tea the student could buy?

Suppose a caffeine-deprived man needs to wake up.Suppose his preferences can be described by $U = 3 \text { Coffee } + 2 \mathrm { Tea }$ .If the price of coffee is $4 and the price of tea is $1,he will buy

Economic Models

Demand Curves

Uncertainty

Game Theory

Production

Costs

Profit Maximization and Supply

Perfect Competition in a Single Market

General Equilibrium and Welfare

Monopoly

Imperfect Competition

Pricing in Input Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Behavioral Economics

Filters

Exam 2: Utility and Choice

If bundles of goods A and B lie on the same indifference curve,one can assume the individual

For an individual who consumes only two goods,X and Y,the opportunity cost of consuming one unit of X in terms of how much Y must be given up is reflected in

"If an individual is to maximize the utility received from consumption,he or she should spend all available income...." This statement assumes.

If people like their goods in fixed proportions,the two goods are

Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25 and that a student's beverage budget is $20 per week.If you were going to write an algebraic expression of this budget line of the form Coffee =A+BTea\text { Coffee } = A + B T e a Coffee =A+BTea .B would be

Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25 and that a student's beverage budget is $20 per week.What is the most cups of tea the student could buy?

Suppose a caffeine-deprived man needs to wake up.Suppose his preferences can be described by U=3 Coffee +2TeaU = 3 \text { Coffee } + 2 \mathrm { Tea }U=3 Coffee +2Tea .If the price of coffee is $4 and the price of tea is $1,he will buy

Economic Models

Demand Curves

Uncertainty

Game Theory

Production

Costs

Profit Maximization and Supply

Perfect Competition in a Single Market

General Equilibrium and Welfare

Monopoly

Imperfect Competition

Pricing in Input Markets

Capital and Time

Asymmetric Information

Externalities and Public Goods

Behavioral Economics

Filters

Suppose a cup of coffee at the campus coffee shop is $2.50 and a cup of hot tea is $1.25 and that a student's beverage budget is $20 per week.If you were going to write an algebraic expression of this budget line of the form $\text { Coffee } = A + B T e a$ .B would be

Suppose a caffeine-deprived man needs to wake up.Suppose his preferences can be described by $U = 3 \text { Coffee } + 2 \mathrm { Tea }$ .If the price of coffee is $4 and the price of tea is $1,he will buy