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11.Montana is currently spending all of her income on goods S and T. Good S has a price of $30 per unit and Good T has a price of $16 per unit. The marginal utility of Good S is currently 150 utils. If Montana is maximizing her utility, what must be the marginal utility for Good T?

a.160 utils

b.80 utils

c.56 utils

d.136 utils

12.The term "utlility" refers to:

a.Happiness

b.Any of these could be considered "utility."

c.Satisfaction

d.Self-fulfillment

13.Laurie is currently spending all of her income on goods N and M. Good N has a price of $15 per unit and Good M has a price of $18 per unit. The marginal utility of Good N is currently 35 utils and the marginal utility of Good M is currently 42 utils. What should Sara do?

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

b.Buy more of Good N and more of Good M

c.Buy more of Good M and less of Good N

d.Buy more of Good N and less of Good M

14.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 on her budget line (budget constraint)?

a.75 bottles of water and 75 pieces of beef jerky

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

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

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

15.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. If consumption bundle A provides the same amount of utility as consumption bundle C, which of the following must be true?

a.Consumption bundle B provides the most utility

b.The marginal utility of books is greater than the marginal utility of candy bars

c.Consumption bundle B provides the least utility

d.The marginal utility of candy bars is greater than the marginal utility of books

16.If the consumer's income increases:

a.the budget constraint shifts out and its slope does not change.

b.the budget constraint shifts out and its slope increases.

c.the budget constraint shifts in and its slope does not change.

d.the budget constraint shifts in and its slope increases.

17.The slope of the budget constraint (or budget line) is the:

a.marginal rate of substitution.

b.opposite of the price ratio.

c.opposite of the marginal rate of substitution.

d.opposite of the ratio of the marginal utility.

18.If marginal utility is diminishing but positive, then if you receive 300 utils from 1 slice of pizza, which of the following could be the utility you get from 2 slices of pizza?

a.300 utils

b.150 utils

c.500 utils

d.600 utils

19.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. Between which two bundles is it NOT possible for a consumer to be INDIFFERENT?

a.Consumption bundle A and consumption bundle B

b.Consumption bundle A and consumption bundle C

c.Consumption bundle B and consumption bundle C

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

a.buy more A.

b.buy less B.

c.buy more B.

d.buy less A.