Refer to Figure Vingt-et-un-3 drawn by Romeo for Juliet. In graph (a), if income is equal to $240, what is the price of good Y? 19. la. I$1 Ib I$2 c. $3 d. $4 Figure Vingt-et-un-3 (a) (b) Quantity of 60 Quantity of Y A .. 20. Refer to Figure Vingt-et-un-3 drawn by Romeo for Juliet. In the other graph which is labelled (b), if income is equal to $240, what is the price of good Y? a. $42 b. $44 c. $46 d. $48 Refer to Figure Vingt-et-un-3 drawn by Romeo for Juliet. In graph (b), if income is equal to $240, what is the price of good X? 21. a. $8 b. $10 c.$12 d. $16 22. Refer to Figure Vingt-et-un-3 created by Romeo for Juliet but copyrighted by the Capulet family. In the first graph labelled (a), what is the price of good Y relative to good X (i.e., Py/Px)? a. 1/4 b. 1/3 c. 3/4 d. 3/1 Refer to Figure vingt-et-un-3 constructed by Romeo for Juliet, copyrighted by the Capulets and distributed worldwide by the Hogwarts Graphics company. In the second graph, labelled graph (b), what is the price of good X relative to good Y (i.e., Py/Py)? 23. a. 1/4 b. 1/3 c.3/4 d. 3/1 11:35 Economics 1100 Quiz 4 000 24. If the consumption of one good by Othello is reduced, how must Othello alter his consumption of another good in order to remain indifferent between two bundles? a. He can reduce, increase, or not change his consumption of another good. b. He must reduce his consumption of another good. c. He must increase his consumption of another good. d. He must not change his consumption of another good. 25. The Marquis of Queensbury is puzzled by economic theory and in particular by what the slope of an indifference curve is? It is: a. the rate of change of consumer's preferences b. the marginal rate of preference c. the marginal rate of substitution d. the slope of the budget constraint 26. Desdemona is interested in consumer theory and wonders if an indifference curve is bowed inward toward the origin, what do we know about the marginal rate of substitution? a. It is not likely to reflect the relative value of goods. b. It is likely to be constant for all bundles along the indifference curve. c. It is likely to be identical to the price ratio for each bundle along the indifference curve. d. It is different for each bundle along the indifference curve. 27. Anthony and Cleopatra have tired of each other's company and prefer to study economics and wish to know which of the following below is a property of indifference curves? a. Lower indifference curves are preferred to higher ones. b. The slope of indifference curves is positive. c. Indifference curves do not cross. d. Indifference curves are bowed outward. 28. Refer to Figure Ershiyi-Si drawn by Bill and Ted just before their excellent adventure which is an elegant rendering of indifference curves. Comparing all the points on the figure, which one is the correct choice? a. If a consumer moves from point C to point A, her loss of cereal bars cannot be compensated by an increase of candy bars. b. Point E is preferred to all other points identified in the figure. c. Since more is preferred to less, point C may be preferred to point E in some circumstances. d. Since point E and point B have basically equal units of candy bars and cereal bars, a consumer would be indifferent between these two points. Figure Ershiyi-Si This figure shows a consumer's choice between Twinkies (candy bars) and Ho-Ho's (cereal bars). Quantity of Twinkles 11:35 Economics 1100 Quiz 4 000 Figure Ershiyi-Si This figure shows a consumer's choice between Twinkies (candy bars) and Ho-Ho's (cereal bars). Quantity of Twinkles Quantity of Ho-Ho's 29. Doogie Howser is taking a break from seeing patients and wonders which of the following is a property of indifference curves? a. Indifference curves are upward sloping. b. Indifference curves that are farther from the origin are preferable to indifference curves closer to the origin. c. Indifference curves are bowed outward from the origin. d. Indifference curves may or may not cross. Shaun Murphy, who has become Doogie Howser's competitor in the market for cute young precocious physicians, wants to know of slightly bowed inward sets of indifference curves: They represent the two goods as which of the following types? 30. a. perfect substitutes b. perfect complements c.very close substitutes d. very close complements 31. Dalton McGuinty asks Norman Bates what exactly is the term for the point where the highest attainable indifference curve and the budget constraint are tangent? a. the consumer's equilibrium b. the consumer's utility maximum c. the consumer's efficient allocation of resources d. the consumer's optimum 32. At the Bates Motel, there is a bulletin board with economics questions and the most important is which of the following quantities is a rational consumer likely to have maximized? a. preferences |b. marginal rate of substitution c. utility d. budget constraint