The table shows an indifference schedule for several combinations of X and Y Combination Quantity of X Quantity of Y a 20 1 b 16 2 c 12 3 d 10 4 e 9 5 How much of X is the consumer willing to give up to obtain the third unit of Y Top of Form Multiple Choice 3 4 8 6 Bottom of Form Ben is exhausting his money income consuming products A and B in such quantities that MU a P a 8 and MU b P b 6 Ben should purchase Top of Form Multiple Choice less of A and more of B less of B and more of A more of both A and B less of both A and B Bottom of Form A child is given $5 20 of pocket money to be spent on either hard candies or chocolates Chocolates cost 40 cents and hard candies 80 cents each The marginal utilities derived from each product are as shown in the following table Number of Items MU of Chocolates MU of Hard Candies 1 60 150 2 50 140 3 40 120 4 30 100 5 20 80 6 10 70 7 5 50 8 0 20 Which combination would give the child the maximum utility out of spending $5 20 Top of Form Multiple Choice 8 chocolates and 2 hard candies 5 chocolates and 4 hard candies 3 chocolates and 5 hard candies 2 chocolates and 4 hard candies Bottom of Form If the total utility from consuming six units of a product is 43 and the marginal utility of a seventh unit is 6, then the total utility from consuming seven units would be Top of Form Multiple Choice 37 49 7 42 Bottom of Form A consumer is in equilibrium and is spending income in such a way that the marginal utility of product X is 40 units and that of Y is 16 units If the unit price of X is $5, then the price of Y must be Top of Form Multiple Choice $1 per unit $2 per unit $3 per unit $4 per unit Bottom of Form Suppose Ryan and Rita were randomly shown the numbers 15 and 82, respectively, and then asked to estimate the price of an item about which they have relatively limited knowledge According to findings from behavioral economics, we would expect Top of Form Multiple Choice Ryan to estimate a price higher than what Rita would estimate Ryan to estimate a price lower than what Rita would estimate Ryan to estimate a price about the same as what Rita would estimate the randomly shown numbers to have no influence on their estimates Bottom of Form Mrs Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 70 utils and the marginal utility of the last bag is 50 utils The prices of soda and pretzels are $1 per bottle and $0 8 per bag, respectively It can be concluded that Top of Form Multiple Choice the two commodities are substitute goods Mrs Arnold should spend more on pretzels and less on soda Mrs Arnold should spend more on soda and less on pretzels Mrs Arnold is buying soda and pretzels in the utility maximizing amounts Bottom of Form The table shows an indifference schedule for several combinations of X and Y Combination Quantity of X Quantity of Y a 20 1 b 16 2 c 12 3 d 10 4 e 9 5 Approximately how much of Y is the consumer willing to give up to obtain the tenth unit of X Top of Form Multiple Choice 5 1 4 1 4 Bottom of Form If a consumer has an income of $24, the price of X is $2, and the price of Y is $3, what is the maximum quantity of X the consumer is able to purchase Top of Form Multiple Choice 6 24 8 12 Bottom of Form The first Pepsi yields Craig 14 units of utility and the second yields him an additional 10 units of utility His total utility from threecans of Pepsi is 30 units of utility The marginal utility of the third Pepsi is Top of Form Multiple Choice 20 units of utility 9 units of utility 6 units of utility 24 units of utility Bottom of Form The table shows a consumer's utility schedule Number of Units Consumed Total Utility 0 0 1 4 2 10 3 18 4 23 5 25 Based on the data in the table, you can conclude that the Top of Form Multiple Choice marginal utility of the third unit is 32 total utility of 5 units is 125 total utility of 4 units is 5 marginal utility of the first unit is 4 Bottom of Form Riley has a new tennis racket for which she paid $300 Haley would like to buy the racket from Riley Assuming Riley's decision is only influenced by the endowment effect, which of the following amounts would most likely represent how much Riley would have to receive to be willing to sell the racket Top of Form Multiple Choice $300 $320 $250 $150 Bottom of Form If MU a P a 100 $35 MU b P b 300 MU c P c 400 , the prices of products B and C in consumer equilibrium Top of Form Multiple Choice cannot be determined from the information given are $105 and $140, respectively are $105 and $175, respectively are $100 and $200, respectively Bottom of Form The table shows the utility schedule for a consumer of candy bars Number Consumed Total Utility 0 0 1 5 2 11 3 18 4 24 5 30 6 35 7 32 Based on the data in the table, you can conclude that the Top of Form Multiple Choice marginal utility of the third unit is 54 marginal utility of the second unit is 11 total utility of 6 units is 123 total utility of 7 units is 32 Bottom of Form Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer The price of product X is $2 50, and the price of product Y is $2 50 The income of the consumer is $20 Product X Product Y Quantity MU X Quantity MU Y 1 32 1 24 2 28 2 20 3 24 3 16 4 20 4 12 5 16 5 8 If the consumer buys both product X and product Y, how much will the consumer buy of each in order to maximize utility Top of Form Multiple Choice 4X and 2Y 4X and 4Y 3X and 5Y 5X and 3Y Bottom of Form Suppose Faith and Mickey are playing both dictator and ultimatum games Faith is the dictator proposer and has $20 to allocate Based on repeated experiments of the dictator and ultimatum games, what payouts to Faith would be most consistent with the findings of behavioral economists Top of Form Multiple Choice Faith receives $20 from the dictator game and $20 from the ultimatum game Faith receives $10 from the dictator game and $8 from the ultimatum game Faith receives $10 from the dictator game and $10 from the ultimatum game Faith receives $12 from the dictator game and $11 from the ultimatum game Bottom of Form Answer the question on the basis of the following total utility data for products L and M Assume that the prices of L and M are $1 5 and $2, respectively, and that the consumer's income is $12 5 Units of L Total Utility Units of M Total Utility 1 9 1 16 2 15 2 28 3 18 3 36 4 20 4 40 5 21 5 42 How many units of the two products will the rational consumer purchase Top of Form Multiple Choice 5 of L and 2 of M 4 of L and 3 of M 1 of L and 5 of M 3 of L and 4 of M Bottom of Form Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer The price of product X is $3, and the price of product Y is $2 The income of the consumer is $18 Product X Product Y Quantity MU X Quantity MU Y 1 32 1 24 2 28 2 20 3 24 3 16 4 20 4 12 5 16 5 8 If the consumer buys product X or product Y one unit at a time, which of the following will the consumer's first two purchases be Top of Form Multiple Choice a first unit of X followed by a first unit of Y a first unit of X followed by a second unit of X a first unit of Y followed by a second unit of Y a first unit of Y followed by a first unit of X Bottom of Form The income of a consumer is $40, the price of A is $2, and the price of B is $6 If the quantity of A is measured vertically, then the slope of the budget line is Top of Form Multiple Choice 3 0 0 5 0 33 2 5 Bottom of Form A consumer has an income of $200, and the price of X is $5, while the price of Y is $10 If the consumer buys 8 units of X, then the maximum quantity of Y that she could also buy is Top of Form Multiple Choice 16 18 20 14 Bottom of Form

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The table shows an indifference schedule for several combinations of X and Y. Combination Quantity of X Quantity of Y a 20 1 b 16

The table shows an indifference schedule for several combinations of X and Y.

Combination	Quantity of X	Quantity of Y
a	20	1
b	16	2
c	12	3
d	10	4
e	9	5

How much of X is the consumer willing to give up to obtain the third unit of Y?

Top of Form

Multiple Choice

Bottom of Form

Ben is exhausting his money income consuming products A and B in such quantities that MU_a/P_a= 8 and MU_b/P_b= 6. Ben should purchase

Top of Form

Multiple Choice

less of A and more of B.
less of B and more of A.
more of both A and B.
less of both A and B.

Bottom of Form

A child is given $5.20 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table.

Number of Items	MU of Chocolates	MU of Hard Candies
1	60	150
2	50	140
3	40	120
4	30	100
5	20	80
6	10	70
7	5	50
8	0	20

Which combination would give the child the maximum utility out of spending $5.20?

Top of Form

Multiple Choice

8 chocolates and 2 hard candies
5 chocolates and 4 hard candies
3 chocolates and 5 hard candies
2 chocolates and 4 hard candies

Bottom of Form

If the total utility from consuming six units of a product is 43 and the marginal utility of a seventh unit is 6, then the total utility from consuming seven units would be

Top of Form

Multiple Choice

Bottom of Form

A consumer is in equilibrium and is spending income in such a way that the marginal utility of product X is 40 units and that of Y is 16 units. If the unit price of X is $5, then the price of Y must be

Top of Form

Multiple Choice

$1 per unit.
$2 per unit.
$3 per unit.
$4 per unit.

Bottom of Form

Suppose Ryan and Rita were randomly shown the numbers 15 and 82, respectively, and then asked to estimate the price of an item about which they have relatively limited knowledge. According to findings from behavioral economics, we would expect

Top of Form

Multiple Choice

Ryan to estimate a price higher than what Rita would estimate.
Ryan to estimate a price lower than what Rita would estimate.
Ryan to estimate a price about the same as what Rita would estimate.
the randomly shown numbers to have no influence on their estimates.

Bottom of Form

Mrs. Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 70 utils and the marginal utility of the last bag is 50 utils. The prices of soda and pretzels are $1 per bottle and $0.8 per bag, respectively. It can be concluded that

Top of Form

Multiple Choice

the two commodities are substitute goods.
Mrs. Arnold should spend more on pretzels and less on soda.
Mrs. Arnold should spend more on soda and less on pretzels.
Mrs. Arnold is buying soda and pretzels in the utility-maximizing amounts.

Bottom of Form

The table shows an indifference schedule for several combinations of X and Y.

Combination	Quantity of X	Quantity of Y
a	20	1
b	16	2
c	12	3
d	10	4
e	9	5

Approximately how much of Y is the consumer willing to give up to obtain the tenth unit of X?

Top of Form

Multiple Choice

Bottom of Form

If a consumer has an income of $24, the price of X is $2, and the price of Y is $3, what is the maximum quantity of X the consumer is able to purchase?

Top of Form

Multiple Choice

Bottom of Form

The first Pepsi yields Craig 14 units of utility and the second yields him an additional 10 units of utility. His total utility from threecans of Pepsi is 30 units of utility. The marginal utility of the third Pepsi is

Top of Form

Multiple Choice

20 units of utility.
9 units of utility.
6 units of utility.
24 units of utility.

Bottom of Form

The table shows a consumer's utility schedule.

Number of Units Consumed	Total Utility
0	0
1	4
2	10
3	18
4	23
5	25

Based on the data in the table, you can conclude that the

Top of Form

Multiple Choice

marginal utility of the third unit is 32.
total utility of 5 units is 125.
total utility of 4 units is 5.
marginal utility of the first unit is 4.

Bottom of Form

Riley has a new tennis racket for which she paid $300. Haley would like to buy the racket from Riley. Assuming Riley's decision is only influenced by the endowment effect, which of the following amounts would most likely represent how much Riley would have to receive to be willing to sell the racket?

Top of Form

Multiple Choice

$300
$320
$250
$150

Bottom of Form

If MU_a/P_a= 100/$35 = MU_b/P_b= 300/? = MU_c/P_c= 400/?, the prices of products B and C in consumer equilibrium

Top of Form

Multiple Choice

cannot be determined from the information given.
are $105 and $140, respectively.
are $105 and $175, respectively.
are $100 and $200, respectively.

Bottom of Form

The table shows the utility schedule for a consumer of candy bars.

Number Consumed	Total Utility
0	0
1	5
2	11
3	18
4	24
5	30
6	35
7	32

Based on the data in the table, you can conclude that the

Top of Form

Multiple Choice

marginal utility of the third unit is 54.
marginal utility of the second unit is 11.
total utility of 6 units is 123.
total utility of 7 units is 32.

Bottom of Form

Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $2.50, and the price of product Y is $2.50. The income of the consumer is $20.

Product X	Product Y
Quantity	MU_X	Quantity	MU_Y
1	32	1	24
2	28	2	20
3	24	3	16
4	20	4	12
5	16	5	8

If the consumer buys both product X and product Y, how much will the consumer buy of each in order to maximize utility?

Top of Form

Multiple Choice

4X and 2Y
4X and 4Y
3X and 5Y
5X and 3Y

Bottom of Form

Suppose Faith and Mickey are playing both dictator and ultimatum games. Faith is the dictator/proposer and has $20 to allocate. Based on repeated experiments of the dictator and ultimatum games, what payouts to Faith would be most consistent with the findings of behavioral economists?

Top of Form

Multiple Choice

Faith receives $20 from the dictator game and $20 from the ultimatum game.
Faith receives $10 from the dictator game and $8 from the ultimatum game.
Faith receives $10 from the dictator game and $10 from the ultimatum game.
Faith receives $12 from the dictator game and $11 from the ultimatum game.

Bottom of Form

Answer the question on the basis of the following total utility data for products L and M. Assume that the prices of L and M are $1.5 and $2, respectively, and that the consumer's income is $12.5

Units of L	Total Utility	Units of M	Total Utility
1	9	1	16
2	15	2	28
3	18	3	36
4	20	4	40
5	21	5	42

How many units of the two products will the rational consumer purchase?

Top of Form

Multiple Choice

5 of L and 2 of M
4 of L and 3 of M
1 of L and 5 of M
3 of L and 4 of M

Bottom of Form

Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $3, and the price of product Y is $2. The income of the consumer is $18.

Product X	Product Y
Quantity	MU_X	Quantity	MU_Y
1	32	1	24
2	28	2	20
3	24	3	16
4	20	4	12
5	16	5	8

If the consumer buys product X or product Y one unit at a time, which of the following will the consumer's first two purchases be?

Top of Form

Multiple Choice

a first unit of X followed by a first unit of Y
a first unit of X followed by a second unit of X
a first unit of Y followed by a second unit of Y
a first unit of Y followed by a first unit of X

Bottom of Form

The income of a consumer is $40, the price of A is $2, and the price of B is $6. If the quantity of A is measured vertically, then the slope of the budget line is

Top of Form

Multiple Choice

3.0.
0.5.
0.33.
2.5.

Bottom of Form

A consumer has an income of $200, and the price of X is $5, while the price of Y is $10. If the consumer buys 8 units of X, then the maximum quantity of Y that she could also buy is

Top of Form

Multiple Choice

Bottom of Form