Question 1 0 out of 2.5 points Assume that the price of commodityA is $20, the price of commodity B is $10, and that the consumer is currently spending all available income. At the consumer's current consumption basket the marginal utility ofA is 6 and the marginal utility of B is 4. Which of the following statements is correct? Question 2 0 out of 2.5 points Suppose the price of good A is $20, the price of good B is $10. and that the consumer is currently spending all available income. At the consumer's current consumption basket the marginal utility of good A is 8 and the marginal utility of good B is 2. Question 3 2.5 out of 2.5 points If a consumer purchases two goods, food (measured along the xaxis) and housing (measured along the yaxis), then what happens to the slope of the consumer's budget constraint if the price of food falls? Question 4 2.5 out of 2.5 points Consider the utility function U = 5x +3y2, which has MUX = 5 and MUy = 6y. The indifference curves for this utility function Question 5 2.5 out of 2.5 points Assume that two baskets and lie on the same indifference curve. Assume that basket contains more of good than basket but less of good than basket. As the consumer moves down and to the right (from basket to basket) along his indifference curve, total utility Question 6 0 out of 2.5 points The price of good x is $5 and the price of good y is $7. The marginal utilities ofx and y are given by: Question 6 0 out of 2.5 points The price of good x is $5 and the price of good y is $7. The marginal utilities of x and y are given by: MUx = y and MUy = X. Based on this information, which consumption bundles could be an interior optimum (i.e. utility max. bundle)? Question 7 2.5 out of 2.5 points The budget line Question 8 2.5 out of 2.5 points The consumer has the following Cobb-Douglas Utility Function:Question 8 2.5 out of 2.5 points The consumer has the following Cobb-Douglas Utility Function: U(x, y) = x0.5 10.5 Px is $5, Py = $ 10, and M = $ 1,000 Based on this information, what is her optimal (or utility maximizing) consumption bundle (or basket)? Question 9 2.5 out of 2.5 points If a consumer purchases 2 commodities, Food (F) (measured along the x axis) and housing (H) (measured along the y axis), and if the price has an income of $600? of food is $3 per unit and the price of housing is $400 per unit, then what is the slope of the consumer's budget constraint if the consumer Question 10 2.5 out of 2.5 points WhichQuestion 10 2.5 out of2.5 points Which of the following statements is false? Question 11 0 out of 2.5 points Which of the following utility functions is an example of preferences for perfect complements? Question 12 0 out of 2.5 points A worker's utility function, expressed in terms of Consumption (C) and Leisure (L), is given by: UCC,L) = C2L3 Based on this information, her Marginal Utility of Consumption (MUG) is: Question 13 2.5 out of 2.5 points On a typical optimal choice diagram, with budget lines and indifference curves. the line that connects the consumer's optimal baskets as the consumer's income changes holding the prices of the goods constant is called the consumer's Question 14 2.5 out of 2.5 points The consumer's utility function is given by: U(x,y) = '/ xy with the following Marginal Utilties: l 2J7 Based on this information, what the iguation for the consumer's demand curve for Good x? MUx= l andMUy= 2 Question 15 2.5 out of 2.5 points Question 15 2.5 out of 2.5 points Assume that M represents the consumer's income, Px represents the price of good x and Py represents the price of good y. If good y is measured along the horizontal axis and good y is measured along the vertical axis, then the "x -intercept" measures the maximum amount of good x that the consumer can afford, which can be expressed as: Question 16 0 out of 2.5 points A worker's utility function, expressed in terms of Consumption (C) and Leisure (L), is given by: U(C, L) = C 213 Based on this information, her Marginal Utility of Leisure (MU,) is: Question 17 2.5 out of 2.5 points The substitution effect isQuestion 17 2.5 out of 2.5 points The substitution effect is Question 18 0 out of 2.5 points Assume that the price of commodity A is $20, the price of commodity B is $10, and that the consumer is currently spending all available income. At the consumer's current consumption bundle the marginal utility ofA is 8 and the marginal utility of B is 4. Which of the following statements is correct? Question 19 0 out of 2.5 points The assumption that preferences are transitive requires the consumer Question 20 2.5 out of 2.5 points which of the following conditions will NOT necessary hold true at the consumer's interior optimum (for Utility Maximization)? Question 21 2.5 out of 2.5 points Which of the following statements is false? Question 22 2.5 out of 2.5 points The income effect is Question 23 0 out of 2.5 points Question 23 0 out of 2.5 points Suppose the price of Good A is $20 per unit, the price of Good B is $10 per unit, and the consumer's income is $1000 per month. The equation of the budget line is: Question 24 2.5 out of 2.5 points Which of the following utility functions is an example of preferences for perfect substitutes? Question 25 2.5 out of 2.5 points Suppose that a consumer has utility function U(x, y) with MUX = 5y2x and MUy = 2x2y. Based on this information, what is the marginal rate of substitution? Question 26 2.5 out of 2.5 points Suppose when the consumer's income rises by 100%, the consumer's consumption of good only increases by 1%. Based on this information, the consumer's income elasticity for good is Question 27 2.5 out of2.5 points A graph that plots the consumer's level of consumption of a good against the consumer's income is called a(n) Question 28 0 out of 2.5 points The consumer's Cobb-Douglas Utility Function is given by: U(x,y) = XlMygl4 Question 28 0 out of 2.5 points The consumer's Cobb-Douglas Utility Function is given by: U(x,y) = x1/4, 3/4 Based on this information, what is the Marginal Utility of Good y (MUy)? Question 29 2.5 out of 2.5 points The consumer's Cobb-Douglas Utility Function is given by: U(x,y) = x1/4, 3/4 Based on this information, what is the Marginal Utility of Good x (MUx)? Question 30 2.5 out of 2.5 points On a typical optimal choice diagram, with budget lines and indifference curves, the line that connects the consumer's optimal baskets as theQuestion 30 2.5 out of 2.5 points On a typical optimal choice diagram, with budget lines and indifference curves, the line that connects the consumer's optimal baskets as the consumer's income changes holding the prices of the goods constant is called the consumer's Question 31 2.5 out of2.5 points The consumer's utility function is given by: U(x.y) = min{3x.y} If PX = $5 per unit and Py= $10 per unit and income is M = $105, what is the consumer's optimal consumption bundle? Question 32 0 out of 2.5 points Suppose a consumer buys two goods, Good x and Good y and and has income of $30. Initially PX = 3 and Py = 3 and the consumer chooses basket A with x = 7 and y: 1. Question 32 0 out of 2.5 points Suppose a consumer buys two goods, Good x and Good y and and has income of $30. Initially PX = 3 and Py = 3 and the consumer chooses basket A with x = 7 and y: 1. The prices change to PX = 4 and Py = 2 and the consumer chooses basket B with x = 5 and y = 5. Question 33 0 out of 2.5 points Suppose the price of Good A is $20 per unit, the price of Good B is $10 per unit, and the consumer's income is $1,000 per month. which of the following baskets is n_ot on the consumer's budget line? Question 34 2.5 out of 2.5 points When total utility, U(x) is maximized, marginal utility, MUX is Question 35 2.5 out of 2.5 points Suppose that a consumer has the utility function U = 5X+ 7Y. The MRSXIy is Question 36 2.5 out of 2.5 points When the consumer's income rises by 100%, the consumer's consumption of good only increases 1%. Based on this information, we can infer that good is a(n) Question 37 2.5 out of 2.5 points Question 37 2.5 out of 2.5 points Assume that the Marginal Utilities for Goods x and y are given by: MUx = y and MUy = x. If the consumer's budget constraint is given by 20x + 10y= 400, the optimal amount of Good y that a utilitymaximizing consumer would buy is: Question 38 2.5 out of 2.5 points The consumer's utility function is given as: U(x.y) = XY ; assuming that the price of Good X (px) is $1, the price of Good Y (py) is $1, and the consumer's income (M) is $100, the utility maximizing consumption bundle (or basket) is: Question 39 0 out of 2.5 points Alex consumes goods xand y, with prices PX = $5 per unit and Py= $8 per unit. His income is M = $48. The government imposes a tax of $1 per unit on good x. What is the new equation for the budget constraint? Question 38 2.5 out of 2.5 points The consumer's utility function is given as: U(X,y) = xy ; assuming that the price of Good X (px) is $1, the price of Good Y (py) is $1, and the consumer's income (M) is $100, the utility maximizing consumption bundle (or basket) is: Question 39 0 out of 2.5 points Alex consumes goods xand y, with prices PX = $5 per unit and Py= $8 per unit. His income is M = $48. The government imposes a tax of $1 per unit on good x. What is the new equation for the budget constraint? Question 40 2.5 out of 2.5 points Marginal utility