ueeon 01 The gure shows the indifference curves of a consumer with preferences over goods I and Z. a Which of the following alternatives is correct? {a} Goods 1!: and I are perfect substitutes and give exatihrie same amount of utility per unit. [in] Goods I and Z are peect substitutes, but one unit ofgood I gives as much utility as half a unit of good 2. [c1 Goods it and Z are perfect suhsmt, but one unit of good it gives as much utility as two u nits of good 2. {d} Goods if: and 2 are perfect complements: to obtain a certain ulityr level, the oonsumer must have two units of good it for every! unit of good 2. Question 02 The gure shows the ind iffe renoe curves of a comumer with preferences over goods it a nd 2. Which of the following alternatives is correct? {a} Goods 1': and E are perfect subsljtutes and give exactly the same amountof utility per unit. {hj Goods I and Z are perfect substuta, but one unit of good it gives as much utility as two unil: of good 2. {c} Goods 3: and Z are imperfect subsljtutes: the consumer gefs more uljlity from consuming half a unit of each good than from consuming one unit of just it or one unit of just 2. {dj Goods I and Z are perfect complemenis: to obtain a oertain utility level. the consumer must have one unit of good it for every unit of good 2. Question 03 The gure shows the indifference curves of a consumer with preferences over goods if a nd 2. z 11 Which of the following altematives is correct? {a} Goods X and 2 are perfect substutes and give exactly the same am-ountof utility perunit. {hj Goods it and 2 are perfect substut, but one unit of good it gives as much utility as two units of good 2. {c} Goods it and Z are imperfect suhsljtutes: the oonsumer gefs more utility from consuming half a unit of each good than from consuming one unit of just K or one unit of just 2. {dj Goods if and 2 are imperfect substitutes: the consumer gets less utility from consuming half a unit of each good than from consuming one unit of just K or one unit of just 2. Question on The gure shows the indifference curves of a consumer with preferences over goods it and E. 2' Which of the following alternatives is correct? {a} Goods 1: and E are perfect substitutes and give exactly the sa me amou ntof utility per u nit. {b} Goods K and Z are perfect substitutes, but one unit of good Kgives as much utility as th ree u n iE of good 2. {c} Goods I and Z are perfect complements: to obtain a certain utility level, the consumer must have one unit of good it for everyI three uniE of good 2. id] Goods I and 2 are perfect complements: to obtain a certain utility level, the consumer must have three u nits of good it for every unit of good 2. ueslim [16 The gure shows the indifference curves of a consumer with preferences over goods it and 2. z Which ofthe following altema'tives is correct? {a} Goods it and 2 are perfect substitutes and give exactly the sa me amountof utility per u nit. lb] Goods it and Z are imperfect substitutes: the consumer gets more utility from consuming half a unit of each good than from consuming one unit ofjust it or one unit ofjust Z. {c} Goods I and Z are perfect complements: to obtain a certain utility level, the consumer must have two units of good I for every unit of good 2. id] Goods I and 2 are perfect complements: to obtain a certain utility level, the consumer must have one unit of good it for every unit of good 2. Question [16 The graph below shows how the budget line of a consumer changed following changes in the prices of goods it and 2, PI and P3. and in the consu mer's income, 1". 3 we: we; we L3 1 I: x P: Far Whidt of the following alternatives is correct? {a} From L; to L2 there was an increase in the price of good Z: P; :3 Pg. lb] From L1 to L2 there was a decrease in the price of good 2: a; 4:: P3. {c} From L: to L3 there was a decrease in the consumer' 5 income: It\" 1:: 1". {d} From L2 to L3 there was a decrease in the price of good I: P; 1:: PI. Question t]? The graph below shows how the budget line of a oonsumer changed following changes in the mica of goods it and Z, P; and P3, and in the oonsu mer's income, 1'. E 1'1er rare; 1* r- 'l" r x c c a' Which of the following alternatives is correct? {a} From L1 to L2 there was an increase in the price of good I: Pi. 2:- PI. lb] From 1.1 to L2 there was a decrease in the price of good 2: P; c: P3. {c} From L2 to L3 there was an increase in the consumer's income: I" 3:- l\". [d] From L2 to .E.El there was a decrease in the consumer' 5 income: l\" -r:: 1". Question [lit The preferenoe map below shows crossing indifference curves, which violate an assumption in the model of rational oonsumer behavior. .3 I What assumption is violated when indifference curves cross? [Imagine there are three different consumption bundles: A, E, and [2\Question 10 Anne consuma two goods, I and Z, and has an income equal to 1". Her budget constraint is given by 131:3 +1323 5 1". Assume that p1- : $2.5, p3 = $3, and l" = $100. A graph showing Anne's budget constraint would look like the figure below {created using desmos.com[calwlator|. "b Whid'i of the following alternatives is correct? {a} If Anne is a rational consumer whose preferenca satisfy monotonicity, she may choose a co nsumption bundle inside the opportu nityr set: the shaded area in the positive quadrant. {b} The xi ntercept represents the maximum amount of good E that Anne can buy: Yfpz. {c} The slope of Anne's budget line is the negative of the price ratio: pzfpx. It tells how many more units of good it she can buywhen she buys one more unit of good 1. {d} The slope of Anne's budget line is the negative ofthe price ratio: p, {133. lttelb how many units of good 2 Anne must give up to buy one more unit of good it. Question 11 Consider Anne's budget constraint from the previous question. which of the following alternatives is mrreri? {a} If the price of good it increases to some 31} 3:- 15, the budget line will pivot outward along the xaxis: the yinteroept will remain at 12.5, but the xinteroept will be greater than 40-. {b} If the price of good 2 decreases to so me p} I: B, the budget line will pivot outward along the 'fatti: the intintercept will remain at 4D,. but the 1yrintercep't will be greaterthan 12.5. {c} If Anne's income increases to some I\" :1- 100, her budget line will shift to the left and down, thus reducing her opportunity [or choice} set. {d} If Anne's income doubles but one of the prices, either p; or 153, also doubles, her budget constraint will not change.