Answer the following multiple choice questions:

Multiple Choice: 1) The variables that determine a household's budget line are A) its preferences and income. B) its pieferenccs and prices. C) prices and income. D) None of the above are correct. 2) An indifference curve shows A) the relationship between prices and a household's budget. B) all possible prices and preferences for a good. C) combinations of goods among which a household is indifferent. D) budget lines among which a consumer is indifferent. 3) on an indifference curve that is farther from the origin on an indifference curve that is closer to the origin. A) Some combinations; are preferred to some combinations B) Any combination; is preferred to any combination C) Most combinations; are preferred to all combinations D) Combinations; are not as affordable as combinations 4) Marginal utility is the A) usefulness of a product. B) utility that a person receives from the consumption of goods and services. C) change in utility that results from a one-unit change in the quantity of a good consumed. D) change in utility that results from a one-unit change in the price of a good consumed. 5) Melissa has an income of $240 a month to spend on tennis lessons and concert tickets. The price of a tennis lesson is $20, and the price of a concert ticket is $40. The slope of Melissa's budget line, with tennis lessons on the horizontal axis, is A) -2. B) -{)5. C) -6. D) -12. 6) The consumer will select that point on the budget line which puts the consumer on the highest attainable indifference curve. A) True B) False Px i\\9 a. :m [\\x limo? (5} [3} Pa: Pv Fx Pv i\\o i\ N\" [\\o o \"X n Y a \"I n \"Y {C} {D} 7) Suppose an individual's budget line moved as shown above. Which of the four pairs of graphs, each showing the demand for Good X and a separate demand for Good Y, is the most consistent with the given change in the top graph? A. Pair A B. Pair B C. Pair C D. Pair D Chocolate (bars per month) 24 16 0 16 32 48 60 Pizza (slices per month) 8) The indifference curves in the figure above (U1, U2, and U3) reflect Peter's consumption preferences. If Peter consumes 24 slices of pizza and 24 chocolate bars per month, he is as satisfied as he would be consuming slices of pizza and chocolate bars per month. A) 48; 12 B) 40; 20 C) 32; 8 D) 16; 16