1.Assume good X is on the horizontal axis, and good Y is on the vertical axis. If a consumer's budget constraint has a slope that is less than -1:

a. the price of good X is less than the price of good Y.

b. the price of good X is greater than the price of good Y.

c. the consumer gets less utility from good X than from good Y.

d. the consumer gets more utility from good X than from good Y.

2.Kyle's utility function is U = 4X + 3.7Y, where X is units of good X, and Y is units of good Y. What is the marginal utility of good X?

a. 4X + 3.7

b. 0.3X

c. U/4

d. 4

3.Which of the following statements is FALSE?

A utility function gives the relationship between a consumer's well-being and the quantity of goods consumed.

a.Inputs into a utility function may include wool socks, DVD rentals, roller coaster rides, asparagus, b.and Sunday church services.

c.Utility is the difference between the consumer's assets and her liabilities.

d.One person's utility cannot be compared to another person's utility.

4.Martha loves to eat chili, especially an award-winning chili recipe that calls for using 2 tablespoons of chili powder for every 1 pound of ground buffalo. Which of the following utility functions could represent Martha's preferences, where U is a function of tablespoons of chili powder (P) and pounds of ground buffalo (B)?

a.U = min{0.50B, P}

b.U = min{2B, P}

c.U = 2P + B

d.U = 2PB