Q1) If a rational individual has 4 units of good X and 2 units of good Y, the individual could rationally prefer all bundles of the following bundles to the one she has except:

1) 2 units of good X and 6 units of good Y

2) 3 units of good X and 1 unit of good Y

3) 3 units of good X and 4 units of good Y

4) The individual could rationally prefer all of these bundles

Q2) As an investment into his snow clearing business, Jay made a non-refundable purchase of a snow plow for $1,000. The plow can clear two parking lots per hour, and when Jay uses a shovel he can clear one parking lot per hour. He charges the same price regardless of method. Discouraged by the high cost of the plow, Jay considers going back to his old method of shoveling parking lots. Based on the information given, Jay should

1) Use a shovel.

2) Use the snow plow.

3) Use the shovel until the plow has been paid off.

4) Use the snow plow until it has been paid off.

5) Alternate between shovel and plow until the plow has been paid off.