Chapter 2 Trae-False Budget Constraint Difficultv: 1 %o Correct Responses: 90 Discriminat ion Index: 10 Correct Answer: False 2.1 If t here are two goods wit h positive prices and t he price of one good is reduced, while income and ot her prices remain constant, t hen the size of the budget set is reduce Topic: Budget Constraint Difficulty: 1 o Correct Respo Discriminat ion index: 24 Correct Answer: False 2.2 If good 1 is measured on the horizont al axis and good 2 is measured on the vertical axis, and if the price of good 1 is Pi and the price of good 2 is P2, then the slope of the budget line is-P2/pl Topic: Budget Constraint Difficulty: 1 %o Correct Responses: 91 Discrimination Index: 13 Correct Answer: False 2.3 If all prices are doubled and money income is left the same, the budget set does not change because rel ative prices dont change Topic: Budget Constraint Difficulty: 1 Discriminat ion index: 21 Correct Ans 2.4 If there are two goods, and if one good has a negative price and the ot her has a positive price, then the slope of the budget line will be positive Topic: Budget Constraint Difficulty: 1 Correct Responses: 94 Discriminat ion Index: 12 Correct Answer: False 2.5 If all prices double and income triples, t hen the budget line will become steeper
Chapter 2 True-False Budget Constraint Topic: Budget Constraint Diculty: 1 % Correct Responses: 90 Discrimination Index: 10 Correct Answer: False 2.1 If there are two goods with positive prices and the price of one good is reduced, while income and other prices remain constant, then the size of the budget set is reduced. Topic: Budget Constraint Diculty: 1 % Correct Responses: 76 Discrimination Index: 24 Correct Answer: False 2.2 If good 1 is measured on the horizontal axis and good 2 is measured on the vertical axis, and if the price of good 1 is p1 and the price of good 2 is p2; then the slope of the budget line is p2=p1. Topic: Budget Constraint Diculty: 1 % Correct Responses: 91 Discrimination Index: 13 Correct Answer: False 2.3 If all prices are doubled and money income is left the same, the budget set does not change because relative prices don't change. Topic: Budget Constraint Diculty: 1 % Correct Responses: 93 Discrimination Index: 21 Correct Answer: True 2.4 If there are two goods, and if one good has a negative price and the other has a positive price, then the slope of the budget line will be positive. Topic: Budget Constraint Diculty: 1 % Correct Responses: 94 Discrimination Index: 12 Correct Answer: False 2.5 If all prices double and income triples, then the budget line will become steeper
CHAPTER 2 Budget Cons traint Topic: Budget Constraint Difficulty: 1 y Correct Responses: 95 Discrimination Index: 13 Correct Answer: False 2.6 If Good 1 is on the horizont al axis and good 2 is on the vertical axis t hen an increase in the price of Good I will not change the horizont al intercept of the budget line Difficulty: I Correct Responses: 98 Discriminat ion Index: I 2.7 If t here are two goods and the prices of bot h goods rise, then the budget line must become strait y Correct Responses D Correct Answer: True 2.8 There are two goods. You know how much of good 1 a consumer can afford if she spends all of her income on good 1. If you know the ratio of the prices of the two goods, t hen you could draw t he consumer, s budget line wit hout any more information Topic: Budget Const rai Discrimination Index: 0 Correct Answer: True 2. 9 A consumer prefers more to less of every good. Her income rises, and the price of one of the goods falls while ot her prices st ay const ant. These changes must have made her better off %o Ce ResI Discrimina Correct Answer: True 2.10 There are 3 goods. The of good 3 is +2. It is physically possi ble for a consumer to consume dity bundle with non-negative amounts of each good. A consumer who has income of 10 could afford to consume some commodity bundles that include 5 units of good 1 and 6 units of good 2 Difficulty:1 Correct Responses: 80 Discriminat ion Index 2.11 A decrease in income pivots the budget line around the bundle initially consumed
CHAPTER 2 Budget Constraint 2 Topic: Budget Constraint Diculty: 1 % Correct Responses: 95 Discrimination Index: 13 Correct Answer: False 2.6 If Good 1 is on the horizontal axis and Good 2 is on the vertical axis, then an increase in the price of Good 1 will not change the horizontal intercept of the budget line. Topic: Budget Constraint Diculty: 1 % Correct Responses: 98 Discrimination Index: 1 Correct Answer: False 2.7 If there are two goods and the prices of both goods rise, then the budget line must become steeper. Topic: Budget Constraint Diculty: 1 % Correct Responses: 97 Discrimination Index: 0 Correct Answer: True 2.8 There are two goods. You know how much of good 1 a consumer can a ord if she spends all of her income on good 1. If you know the ratio of the prices of the two goods, then you could draw the consumer's budget line without any more information. Topic: Budget Constraint Diculty: 1 % Correct Responses: 91 Discrimination Index: 0 Correct Answer: True 2.9 A consumer prefers more to less of every good. Her income rises, and the price of one of the goods falls while other prices stay constant. These changes must have made her better o . Topic: Budget Constraint Diculty: 2 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: True 2.10 There are 3 goods. The price of good 1 is 1; the price of good 2 is +1; and the price of good 3 is +2. It is physically possible for a consumer to consume any commodity bundle with non-negative amounts of each good. A consumer who has income of 10 could a ord to consume some commodity bundles that include 5 units of good 1 and 6 units of good 2. Topic: Budget Constraint Diculty: 1 % Correct Responses: 80 Discrimination Index: 49 Correct Answer: False 2.11 A decrease in income pivots the budget line around the bundle initially consumed
Multiple Ch noce Budget Const raint gi fdat casthaint DEI aince (e任 If she spends all of her income on lemons and tangerines, Isabell a can just afford 30 lemons and 8 tangerines per day. She could also use her entire budget to buy 6 lemons and 14 tangerines per d ay. The price of lemons is 6 guineas each. How much is Isabellas income per day (a)372 guineas (b)377 guinea ( d)363 guineas (e) None of the above kcet stant Dknulrctnrce. 6 ISe If she spends all of her income on uglifruit and breadfruits, Maria can just afford 11 uglifr per day. The price of uglifruit is 6 pesos each. How much is Maria's income per day:? breadfruits and 4 breadfruits per day. She could also use her entire budget to buy 3 uglifruit and (c)114 pesos (d)105 pesos (e) None of the above
Multiple Choice Budget Constraint Topic: Budget Constraint Diculty: 1 % Correct Responses: 97 Discrimination Index: 6 Correct Answer: A 2.1 If she spends all of her income on lemons and tangerines, Isabella can just a ord 30 lemons and 8 tangerines per day. She could also use her entire budget to buy 6 lemons and 14 tangerines per day. The price of lemons is 6 guineas each. How much is Isabella's income per day? (a) 372 guineas (b) 377 guineas (c) 371 guineas (d) 363 guineas (e) None of the above. Topic: Budget Constraint Diculty: 1 % Correct Responses: 97 Discrimination Index: 6 Correct Answer: A 2.2 If she spends all of her income on uglifruit and breadfruits, Maria can just a ord 11 uglifruit and 4 breadfruits per day. She could also use her entire budget to buy 3 uglifruit and 8 breadfruits per day. The price of uglifruit is 6 pesos each. How much is Maria's income per day? (a) 115 pesos (b) 119 pesos (c) 114 pesos (d) 105 pesos (e) None of the above
CHAPTER 2 Budget Cons traint Topic: Budget Constraint Difficulty: 2 y Correct Responses: o Discrimination Index: 0 Correct Answer: A 2.3 Matt lives on popcorn and seafood sal ads. The price of popcorn is 1 doll ar per bag and the price of seafood sal ads is 2 dollars each. Matt allows himself to spend no more than 13 doll ars a d ay on food. He also rest ricts his consumption to 5, 500 calories per d ay. There are 1,000 calories n a bag of popcorn and 500 calories in a seafood sal ad. If he spends his entire money budget each day and consumes no more calories than his calorie limit (a)he can consume up to 3 bags of popcorn per day, but no more (b) he can consume up to l bags of popcorn per day, butno more (c he can consume up to 5 seafood sal ads per day, but no more (d)he can consume up to 4 bags of popcorn per day, but no more (e) None of the above Topic: Budget Diffic %o Cor Responses: 0 rrect Answer: A 2.4 Quincy lives on ding dongs and seafood salads. The price of di ng dongs is 1 dollar per bag and the price of seafood sal ads is 4 dollars each. Quincy allows hi mself to spend no more than 23 doll ars a d ay on food. He also restricts his consumption to 3, 300 calories per day. There are 600 calories in a bag of ding dongs and 300 calories in a seafood salad. If he spends his entire money budget each day and consumes no more calories than his calorie li mit e up to 3 bags of ding dongs per day, but ne (b)he can consume up to l bags of ding dongs per day, butno more (c) he can consume up to 5 seafood sal ads per day, but no more d) he can consume up to 4 bags of ding dongs per day, but no more (e) None of the above
CHAPTER 2 Budget Constraint 4 Topic: Budget Constraint Diculty: 2 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: A 2.3 Matt lives on popcorn and seafood salads. The price of popcorn is 1 dollar per bag and the price of seafood salads is 2 dollars each. Matt allows himself to spend no more than 13 dollars a day on food. He also restricts his consumption to 5,500 calories per day. There are 1,000 calories in a bag of popcorn and 500 calories in a seafood salad. If he spends his entire money budget each day and consumes no more calories than his calorie limit: (a) he can consume up to 3 bags of popcorn per day, but no more. (b) he can consume up to 1 bags of popcorn per day, butno more. (c) he can consume up to 5 seafood salads per day, but no more. (d) he can consume up to 4 bags of popcorn per day, but no more. (e) None of the above. Topic: Budget Constraint Diculty: 2 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: A 2.4 Quincy lives on ding dongs and seafood salads. The price of ding dongs is 1 dollar per bag and the price of seafood salads is 4 dollars each. Quincy allows himself to spend no more than 23 dollars a day on food. He also restricts his consumption to 3,300 calories per day. There are 600 calories in a bag of ding dongs and 300 calories in a seafood salad. If he spends his entire money budget each day and consumes no more calories than his calorie limit: (a) he can consume up to 3 bags of ding dongs per day, but no more. (b) he can consume up to 1 bags of ding dongs per day, butno more. (c) he can consume up to 5 seafood salads per day, but no more. (d) he can consume up to 4 bags of ding dongs per day, but no more. (e) None of the above
MULTIPLE CHOICE Topic: Budget Constraint Difficulty: 1 y Correct Responses: 88 Correct Answer: A Teresa spends her entire budget and consumes 6 units of a and 20 units of y. The price of a twice the price of y. Her income doubles and the price of y doubles, but the price of r st ays the same. If she continues to buy 20 units of y, what is the largest number of units of a that she can a)12 c)14 (e)There is not enough information to say Topic: Budget Constraint Difficulty: 1 Res Discriminat ion Index: 20 2.6 Linda spends her entire budget and consumes 15 units of a and 19 units of y. The price of a is twice the price of y. Her income doubles and the price of y doubles, but the price of a st ays the same. If she continues to buy 19 units of y, what is the largest number of units of z that she can (b)15 (e)There is not enough information to say Topic: Budget Constrain Difficulty:1 y Correct Responses: 50 Discriminat ion Index: 50 2.7 In year 1, the price of good z was 1, the price of good y was 1, and income was 30. In y 2, the price of 6, the price of good y was 5, and income was 30. On a graph with z on the horizont al axis and y on the vertical, the new budget line is ( a) fatter than the old one and lies below it (b)flatter than the old one and lies above it (c) steeper than the old one and lies below it (d)steeper than the old one and lies above it (e)none of the above
MULTIPLE CHOICE 5 Topic: Budget Constraint Diculty: 1 % Correct Responses: 88 Discrimination Index: 20 Correct Answer: A 2.5 Teresa spends her entire budget and consumes 6 units of x and 20 units of y. The price of x is twice the price of y. Her income doubles and the price of y doubles, but the price of x stays the same. If she continues to buy 20 units of y; what is the largest number of units of x that she can a ord? (a) 12 (b) 6 (c) 14 (d) 16 (e) There is not enough information to say. Topic: Budget Constraint Diculty: 1 % Correct Responses: 88 Discrimination Index: 20 Correct Answer: A 2.6 Linda spends her entire budget and consumes 15 units of x and 19 units of y. The price of x is twice the price of y. Her income doubles and the price of y doubles, but the price of x stays the same. If she continues to buy 19 units of y; what is the largest number of units of x that she can a ord? (a) 30 (b) 15 (c) 32 (d) 34 (e) There is not enough information to say. Topic: Budget Constraint Diculty: 1 % Correct Responses: 50 Discrimination Index: 50 Correct Answer: C 2.7 In year 1, the price of good x was 1, the price of good y was 1, and income was 30. In year 2, the price of x was 6, the price of good y was 5, and income was 30. On a graph with x on the horizontal axis and y on the vertical, the new budget line is: (a) atter than the old one and lies below it. (b) atter than the old one and lies above it. (c) steeper than the old one and lies below it. (d) steeper than the old one and lies above it. (e) none of the above