1.The utility function U = Y/X violates the assumption(s) of:

a.rankability.

b.rankability and completeness.

c.completeness.

d.more is better.

2.Rohan is maximizing utility, subject to his limited income. As a result, which of the following statements is TRUE?

a.His indifference curve intersects his budget constraint at precisely two points.

b.The MRS_XY = P_XP_Y.

c.The slope of his indifference curve is twice the slope of his budget constraint.

d.His budget constraint is tangent to his indifference curve.

3.Ahmed spends all his money on movie tickets and groceries. Suppose Ahmed is presented with two options: A and B. Option A gives him a voucher of $X, which he can only spend on groceries. Option B gives him $X, which he can spend on either or both goods. Which of the following is correct, assuming Ahmed is indifferent between the two options?

a.Ahmed spends at least $X on groceries.

b.Ahmed spends less than $X on groceries.

c.Ahmed must be indifferent between movie tickets and groceries.

d.Ahmed spends his entire income on movie tickets.