PLEASE LET THE ANSWERS BE CORRECT :(

1.Which of the following is most like "bang for the buck"?

a.Marginal Utility of X divided by Price of X

b.Price of X divided by Marginal Utility of X

c.Marginal Utility of X plus Price of X

d.Marginal Utility of X times Price of X

2.If Zeinab's income is $300 per week and the two goods she consumes, bottled water and beef jerky, have prices of $3 and $2 per unit respectively, which one of the following consumption bundles lies outside of her budget line (budget constraint)?

a.60 bottles of water and 60 pieces of beef jerky

b.40 bottles of water and 90 pieces of beef jerky

c.50 bottles of water and 75 pieces of beef jerky

d.75 bottles of water and 50 pieces of beef jerky

3.Right now, Oscar is consuming goods X and Y, which have prices of $4 and $5 respectively, such that the marginal utility of X is 100 and the marginal utility of Y is 150. Is Oscar maximizing his utility?

a.There is not enough information to answer this question

b.No, he should purchase more Y and less X

c.Yes, because the marginal rate of substitution equals the price ratio

d.No, he should purchase more X and less Y

4.If a consumer consumes two goods, A and B, and the price of A falls, then the substitution effect would cause the consumer to:

a.buy more A and more B.

b.buy less A and less B.

c.buy less A and more B.

d.buy more A and less B.

5.Right now, Jorge is consuming goods X and Y, which have prices of $4 and $5 respectively, such that the marginal utility of X is 80 and the marginal utility of Y is 90. Is Jorge maximizing his utility?

a.Yes, because MUX/PX = MUY/PY

b.No, because MUX/PX > MUY/PY

c.No, because MUY/PY > MUX/PX

d.There is not enough information to answer this question

6.Which one of these is the same as saying "more is better"?

a.Marginal utility is always positive

b.Marginal utility is always increasing

c.Marginal utility is diminishing

d.Total utility is always positive

7.If a consumer consumes two goods, A and B, and the price of A falls, then the income effect would cause the consumer to:

a.buy more A and less B.

b.buy more A and more B.

c.buy less A and more B.

d.buy less A and less B.

8.Right now, Oscar is consuming goods X and Y, which have prices of $4 and $5 respectively, such that the marginal utility of X is 100 and the marginal utility of Y is 125. Is Oscar maximizing his utility?

a.There is not enough information to answer this question

b.Yes, because the marginal utility per dollar is equal for both goods

c.No, because the marginal rate of substitution does not equal the price ratio

d.Yes, because the marginal rate of substitution equals the price ratio

9.Suppose consumption bundle A contains 2 books and 5 candy bars, consumption bundle B contains 4 books and 4 candy bars, and consumption bundle C contains 3 books and 2 candy bars. Which of the following CANNOT be the bundle that a consumer likes the most?

a.Consumption bundle C

b.Consumption bundle B

c.Consumption bundle A

10.Sara is currently spending all of her income on goods J and K. Good J has a price of $10 per unit and Good K has a price of $12 per unit. The marginal utility of Good J is currently 72 utils and the marginal utility of Good K is currently 80 utils. What should Sara do?

a.Buy more of Good K and less of Good J

b.Buy more of Good J and less of Good K

c.Buy more of Good J and more of Good K

d.She should not change anything; she is maximizing her utility