2 The income of a consumer is $40, the price of A is $4, and the price of B is $6. If the quantity of A is measured vertically, then the slope of the budget line is Multiple Choice eBook O -1.5. O -0.5. O -0.67. O -2.5.The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $1.5 and $2, respectively, and that consumer income is $9. 11 Units of X Total Utility Units of Y Total Utility 1 9 1 16 2 15 IN 28 3 19 3 36 eBook 4 21 4 40 5 22 5 42 How many units of the two products will the consumer buy to get maximum utility? Multiple Choice O 3 of X and 2 of Y O 1 of X and 4 of Y O 2 of X and 3 of Y O 6 of X and O of YAnswer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $4, and the price of product Y is $2. The income of the consumer is $30. Product X Product Y __ If the consumer buys both product X and product Y, how much will the consumer buy of each in order to maximize utility? Multiple Choice 0 3X and 3V 4X and 4V 5X and BY 0 0 5X and 4V 0 13 The table shows the utility schedule for a consumer of candy bars. Total Numbe Consumed Utility Based on the data in the table, you can conclude that the Multiple Choice 0 marginal utility of the fourth unit is 96. O marginal utility of the third unit is 18. 0 total utility of 2 units is 15. 0 total utility of 5 units is 35. 14 Assume that a consumer purchases a combination of products Y and Z and that the MUy/Py = 25/5 and MUz/ Pz= 40/8. To maximize utility, without spending more money, the consumer should Multiple Choice eBook O purchase less of Z and more of Y. O purchase more of Z and less of Y. O purchase more of both Y and Z. O make no change in the quantities Y and Z.Suppose that Ms. Thomson is currently exhausting her money income by purchasing 10 units of A and 8 units of B at prices of $3 and $4, respectively. The marginal utility of the last units of A and B are 15 and 24, 15 respectively. These data suggest that Ms. Thomson Multiple Choice eBook O has preferences that are at odds with the principle of diminishing marginal utility. O considers A and B to be complementary goods. O should buy more A and less B. O should buy more B and less A.16 Frank is purchasing products C and D in utility-maximizing amounts. If the price of C is $4 and the price of D is $8, then Multiple Choice eBook O the marginal utility of C is twice that of D. O the marginal utility of D is the same as that of C. O the marginal utility of D is twice that of C. O the relationship between the marginal utility of C and D cannot be determined.17 Suppose a consumer has an income of $16, the price of A is $2, and the price of B is $1. Which of the following combinations is on the consumer's budget line? Multiple Choice eBook O 4A and 9B O 5A and 6B O 6A and 6B O 3A and 8BRosa received a corgi pillow as a raffle prize; she would have been willing to pay $18 to buy it herself. Based on the endowment effect, we would expect Rosa to be willing to sell the pillow 18 Multiple Choice Book O for some amount less than $18. O only if she is offered more than $18. O for the $18 she would have been willing to pay for the pillow. O under no circumstances whatsoever.Tony ran a marathon in 3.6 hours; his performance last year on the same course was 3.3 hours Stacey ran the same marathon In 3.6 hours, her prevrous time was 3.8 hours. According to behavioral economists, and 19 based solely on the information given, we would expect Multiple Choice eEook 0 Tony to feel good about his performance. and Stacey to feel good about hers. Tony to feel bad about his performance, and Staceyto feel good about hers. 0 Tony to feel bad about his performance, and Staceyto feel bad about hers. Tony to feel good about his performance. and Stacey to feel bad about hers. 3 Riley has a new tennis racket for which she paid $75. Haley would like to buy the racket from Riley. Assuming Riley's decision is only influenced by the endowment effect, which of the following amounts would most likely represent how much Riley would have to receive to be willing to sell the racket? Multiple Choice eBook O $75 O $100 O $50 O $20Huxley lost $100 in the stock market. According to behavioral economics research, how much of a gain would he have to experience to offset the feeling of loss and have no net change in utility? 20 Multiple Choice eBook O $100 O $250 O $40 O $1504 Assume that a consumer purchases a combination of product A and product B such that the MUa/Pa = 3 and MUb/Pb = 5. To maximize utility without spending more money, the consumer should Multiple Choice eBook O purchase more of product A and less of product B. O purchase less of product A and more of product B. O purchase more of both product A and product B. O make no change in purchases of products A and B.5 Suppose Justine and Sarah are playing the ultimatum game. Justine is the proposer, has $250 to allocate, and Sarah can accept or reject the offer. Based on repeated experiments of the ultimatum game, what combination of payouts to Justine and Sarah is most likely to occur? Multiple Choice Book O $250 for Justine and $0 for Sarah O $125 for Justine and $125 for Sarah O $150 for Justine and $100 for Sarah O $0 for Justine and $250 for Sarah6 Suppose Justine and Sarah are playing the dictator game. Justine is the dictator and has $120 to allocate. Based on repeated experiments of the dictator game, what amounts, on average, are Justine and Sarah most likely to receive? Multiple Choice eBook O $120 for Justine and $0 for Sarah. O $70 for Justine and $50 for Sarah. O $60 for Justine and $60 for Sarah. O $0 for Justine and $120 for Sarah.Ben is exhausting his money income consuming products A and B in such quantities that MUg/P, = 8 and MUb/Pp = 6. Ben should purchase Multiple Choice eBook O less of A and more of B. O less of B and more of A. O more of both A and B. O less of both A and B.8 A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 20 cents and hard candies 95 cents each. The marginal utilities derived from each product are as shown in the following table. Number of Items MU of Chocolates MU of Hard Candies 1 156 50 140 W N 40 eBook 120 4 30 100 5 20 80 6 10 70 5 56 If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases? Multiple Choice O a hard candy, followed by another chocolate O a hard candy, followed by a hard candy O a chocolate, followed by a hard candy O a chocolate, followed by another chocolate9 If you purchase a gift worth $50 for your sister, but your sister would be willing to pay only $30 if she bought the item for herself, then the Multiple Choice eBook O total utility of the gift is $80. O total utility of the gift is $20. O marginal utility of the gift is $20. O loss of value in the gift is $20.10 If MU alPa = 12/$15 = MUp/Pb = 20/? = MU/Pc= 24/?, the prices of products B and C in consumer equilibrium Multiple Choice eBook O cannot be determined from the information given. O are $25 and $30, respectively. O are $25 and $35, respectively. O are $22 and $32, respectively.Wk 4 Apply: Quiz [due Day 7] o 1 The table shows an indifference schedule for several combinations of X and '1'. Quantity of )1 Quantity of Y Approximately how much of 'r' is the consumer willing to give up to obtain the twelfth unit of X? Multiple Choice 0 2 On: Q 4 0 1:4