CHAPTER 2 Budget Co nstraint Rcet istant dIfc lit etR( ases 5o DEnliafinrce so ISa 2s, In m, thep i ec CSh, th ep T ea, gccdy w CS2. ading ew CS60 iy fcr 2, t ep Ti;ecz w gsir. fh ep eG, addy wls&, aIcR ew(S60. onaggch wIth h Caiaaisado the there b cot reis (a)fatter than the old one and lies below it (b) Hatter 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 one Toi. Rdt tastant R6s635 Cnetaiset d If Sh es arc'sh eratigeb acgt v afssac mnrcdaz, @ctsad1o cherries Shecandojat (0Cd9c团hepd(的 c afs Wh ctisth epT e@ ch ein6S ncert? (e) None of the above
CHAPTER 2 Budget Constraint 6 Topic: Budget Constraint Diculty: 1 % Correct Responses: 50 Discrimination Index: 50 Correct Answer: C 2.8 In year 1, the price of good x was 4, the price of good y was 2, and income was 60. In year 2, the price of x was 17, the price of good y was 8, and income was 60. 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. Topic: Budget Constraint Diculty: 1 % Correct Responses: 35 Discrimination Index: 8 Correct Answer: D 2.9 If she spends her entire budget, Vanessa can a ord 47 apricots and 10 cherries. She can also just a ord 20 apricots and 19 cherries. The price of apricots is 18 cents. What is the price of cherries in cents? (a) 64 (b) 3 (c) 21 (d) 54 (e) None of the above
MULTIPLE CHOI at irge D30%ata nde 2.10 If S es arch ratner H aacanGrck39 p( ESad12, p (@7S Sh ec andcjut crd 24 p tch sadi? p eC?s 3 Tk ec p Ech SiS cats Wh ctisth ep l e@ p ecnsnc arf? (e None of the above g0.hato nde 11 Haai t i santv ogres bararcsadop ls Tect@ baracsis30 m CESEGH th ect Gp lsisis m GGh. If h ermen els210 m CI S hO, man baracsc cms e ses arcsaloherrgn emb arace ) None of the above GtRErOe 100 D 242hato nde B ke中示 santoro(Csm sadm dlrs hecto m argcsiS30y mech thecate m trsis15 yantdh If herran els180 y mhO man masse ms eby i se sp acs aloh ermgm emm agcs (e None of the above
MULTIPLE CHOICE 7 Topic: Budget Constraint Diculty: 1 % Correct Responses: 35 Discrimination Index: 8 Correct Answer: D 2.10 If she spends her entire budget, Heidi can a ord 39 peaches and 12 pears. She can also just a ord 24 peaches and 17 pears. The price of peaches is 9 cents. What is the price of pears in cents? (a) 37 (b) 3 (c) 12 (d) 27 (e) None of the above. Topic: Budget Constraint Diculty: 1 % Correct Responses: 100 Discrimination Index: 0 Correct Answer: B 2.11 Heidi thrives on two goods: bananas and apples. The cost of bananas is 30 marks each and the cost of apples is 15 marks each. If her income is 210 marks, how many bananas can she buy if she spends all of her income on bananas? (a) 5 (b) 7 (c) 14 (d) 10 (e) None of the above Topic: Budget Constraint Diculty: 1 % Correct Responses: 100 Discrimination Index: 0 Correct Answer: B 2.12 Teresa thrives on two goods: mangos and melons. The cost of mangos is 30 yen each and the cost of melons is 15 yen each. If her income is 180 yen, how many mangos can she buy if she spends all of her income on mangos? (a) 4 (b) 6 (c) 12 (d) 9 (e) None of the above
GAP ER2 Echt ctant 以% at 20% a Inde 2. 13 Yoram spends his ent ire income on 1l sac ks of acorns and 5 crates of butternuts. The prie of 1 doll affo wit h a sac ks of acorns and b crates of but ternuts w hic h sat is fies t he bud get equat io (4A (b)8A+20B=188 4+14B=96 ((p None of the C D20022 2.14 Eduardo spends his ent ire income on 12 sacks of acorns and 2 crates of butternuts. T he price of acorns is 2 dollars per sack and his income is 34 dollars. He can just afford a com m odity bund le with a sacks of acorns and B crates of butternuts w hich sat isfies t he budget equation (C2+7B=3 b)44+10B=68 C)4+5B=34 C24+9B=36 None of the above D rEine D30 ta nae CaiGtanswe is 4 dollars each and t he cost of bananas is 3 dollars per bunch. If Harry spent all of his income on bananas, he could afford 12 bunc hes of bananas per week. How many paper bac k no Vels could he buy if he spent all of his income on paper bac k novels? (O None of the above
CHAPTER 2 Budget Constraint 8 Topic: Budget Constraint Diculty: 1 % Correct Responses: 76 Discrimination Index: 34 Correct Answer: B 2.13 Yoram spends his entire income on 11 sacks of acorns and 5 crates of butternuts. The price of acorns is 4 dollars per sack and his income is 94 dollars. He can just a ord a commodity bundle with A sacks of acorns and B crates of butternuts which satis es the budget equation: (a) 4A + 12B = 94. (b) 8A + 20B = 188. (c) 6A + 10B = 94. (d) 4A + 14B = 96. (e) None of the above. Topic: Budget Constraint Diculty: 1 % Correct Responses: 76 Discrimination Index: 34 Correct Answer: B 2.14 Eduardo spends his entire income on 12 sacks of acorns and 2 crates of butternuts. The price of acorns is 2 dollars per sack and his income is 34 dollars. He can just a ord a commodity bundle with A sacks of acorns and B crates of butternuts which satis es the budget equation: (a) 2A + 7B = 34. (b) 4A + 10B = 68. (c) 4A + 5B = 34. (d) 2A + 9B = 36. (e) None of the above. Topic: Budget Constraint Diculty: 1 % Correct Responses: 99 Discrimination Index: 5 Correct Answer: C 2.15 Harry thrives on two goods, paperback novels and bananas. The cost of paperback novels is 4 dollars each and the cost of bananas is 3 dollars per bunch.If Harry spent all of his income on bananas, he could a ord 12 bunches of bananas per week. How many paperback novels could he buy if he spent all of his income on paperback novels? (a) 36 (b) 48 (c) 9 (d) 16 (e) None of the above
MULTIPLE CHOI Topic: Budget Constraint Difficulty: 1 y Correct Responses: 92 Discrimination Index Correct Answer: F 2.16 Suppose t hat the prices of good a and good y bot h double, and income triples. On a graph where the budget line is drawn with z on the horizont al axis and y on the vertical axis ( a, the budget line becomes steeper and shifts inward b)the budget line becomes flatter and shifts outward (c) the budget line becomes flatter and shifts inward he new budget line is parallel to the old budget line and lies below it (e None of the above Topic: Budget Constraint %o Correct Responses: 96 Discriminat ion Correct Answer: D 2.17 Suppose that the price of good a triples and the price of good y doubles while income remains const ant. On a graph where the budget line is drawn with z on the horizont al axis and y on the vertical axis, t he new budget line is fatter than the old one and lies below (b) is fatter than the old one and lies above it (c) crosses the old budget line s steeper than the old one and lies below it (e is steeper than the old one and lies above it Topic: Budget Constraint %o Correct Responses: rrect 2.18 While traveling abroad, Tammy spent all of the money in her purse to buy 5 pl ates of spaghetti and 6 oysters. Spaghetti costs 8 units of the local currency per pl ate and she had 82 units of currency in her purse. If s denotes the number of plates of spaghetti and o denotes t he number of oysters purchased, t he set of commodity bundles that she could just afford wit h the money in her purse is descri bed by the eq 82+6o/82 c)8s+7o/82 (e There is not enough information to determine the answer
MULTIPLE CHOICE 9 Topic: Budget Constraint Diculty: 1 % Correct Responses: 92 Discrimination Index: 25 Correct Answer: E 2.16 Suppose that the prices of good x and good y both double, and income triples. On a graph where the budget line is drawn with x on the horizontal axis and y on the vertical axis: (a) the budget line becomes steeper and shifts inward. (b) the budget line becomes atter and shifts outward. (c) the budget line becomes atter and shifts inward. (d) the new budget line is parallel to the old budget line and lies below it. (e) None of the above. Topic: Budget Constraint Diculty: 1 % Correct Responses: 96 Discrimination Index: 18 Correct Answer: D 2.17 Suppose that the price of good x triples and the price of good y doubles while income remains constant. On a graph where the budget line is drawn with x on the horizontal axis and y on the vertical axis, the new budget line: (a) is atter than the old one and lies below it. (b) is atter than the old one and lies above it. (c) crosses the old budget line. (d) is steeper than the old one and lies below it. (e) is steeper than the old one and lies above it. Topic: Budget Constraint Diculty: 3 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: C 2.18 While traveling abroad, Tammy spent all of the money in her purse to buy 5 plates of spaghetti and 6 oysters. Spaghetti costs 8 units of the local currency per plate and she had 82 units of currency in her purse. If s denotes the number of plates of spaghetti and o denotes the number of oysters purchased, the set of commodity bundles that she could just a ord with the money in her purse is described by the equation: (a) 82 + 6o = 82. (b) 6s + 8o = 82. (c) 8s + 7o = 82. (d) 5s + 6o = 82. (e) There is not enough information to determine the answer
CHA PTER 2 Budget Constraint 了;Rt(atit Dinic.at (cnetrescss o DiSlmirdtnirce. o cnetalsee Eily fo w atstosainse ew egtsothathe anpa rOtan. Eily fatsan, m ikshaes Irah, Mlksh ak.&thlm S1 <& ads Iah aqiesadasgigos iah has 200 caas hiy e Ieers, arsmaethans20 aca n rcdadheaw as aisin Sati ats000 caamsperca Whih o thernQigsieessani tne (a) Billy Bob consumes at least 9 milkshakes a day (b) Billy Bob never consumes more than 6 servings of spinach a day (c) Billy Bob never consumes positive amounts of both goods (d) Billy Bob consumes only milkshakes (e) None of the above Fi. Ect thant icnetrtsasS 81 DICT'nlrctnulce. 21 cretans efp 22 a[ ctatcsardhemmg Whenthep n e@ p dateS,&,@ ISper ak adthe n ec hemirgw ass l@ is,er lk.hes atnserfreng eto ll. 5 saks p Ctatcesadio clOS Q hRgp Ermgth. NQthegoem entsus sp ctat(. Manet n. Sha ntchargd blt qrst esgt asus cs cl@ ISrareer sak g p ctatcesc m uh d topa rortissusc tespe etrficdiddann g efa. lasp asange ta (20 cl@ISp erm ain. Ifs shen bero sakS@p ctatcesarde stherimberoclOhs C hemg w hat isLassNEW bicgstelatr a)9s+5c=100 (b)14s+5c=95 e)14s+5c=120
CHAPTER 2 Budget Constraint 10 Topic: Budget Constraint Diculty: 2 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: B 2.19 Billy Bob wants to gain some weight so that he can play football. Billy eats only milkshakes and spinach. Milkshakes cost him $1 each and spinach costs $2 per serving. A milkshake has 850 calories and a serving of spinach has 200 calories. Billy Bob never spends more than $20 a day on food and he always consumes at least 8000 calories per day. Which of the following is necessarily true? (a) Billy Bob consumes at least 9 milkshakes a day. (b) Billy Bob never consumes more than 6 servings of spinach a day. (c) Billy Bob never consumes positive amounts of both goods. (d) Billy Bob consumes only milkshakes. (e) None of the above. Topic: Budget Constraint Diculty: 2 % Correct Responses: 81 Discrimination Index: 21 Correct Answer: D 2.20 Lars consumes only potatoes and herring. When the price of potatoes was 9 crowns per sack and the price of herring was 5 crowns per crock, he spent his entire income to buy 5 sacks of potatoes and 10 crocks of herring per month. Now the government subsidizes potatoes. Market prices haven't changed, but consumers get a subsidy of 5 crowns for every sack of potatoes consumed. To pay for this subsidy, the government introduced an income tax. Lars pays an income tax of 20 crowns per month. If s is the number of sacks of potatoes and c is the number of crocks of herring, what is Lars's NEW budget equation? (a) 9s + 5c = 100. (b) 14s + 5c = 95. (c) 4s + 5c = 95. (d) 4s + 5c = 75. (e) 14s + 5c = 120