ChaPter 2 Budget constraint Topic: Budget Constraint Difficulty: 0 Correct Responses: 99 Discrimination index: 4 Correct answer: B 2.34 Murphy used to consume 100 units of X and 50 units of y when the price of X was 2 and the price of y was 4. If the price of X rose to 5 and the price of y rose to 7, how much would Murphy,'s income have to rise so that he could still afford his origin al bundle? 900 (e) None of the above Topic: Budget Constraint Difficulty: 0 g Correct Responses: 99 Discrimination index: 4 Correct Answer: B 2.35 Murphy used to consume 100 units of X and 50 units of y when the price of X was 2 and the price of y was 4. If the price of X rose to 6 and the price of y rose to 8, how much would Murphy s income have to rise so that he could still afford his origin al bundle? a)800 b)600 C)400 d)1,200 (e) None of the above Correct Responses: 0 Discrimination Index: 0 Correct Answer: c 2.36 This weekend, Martha has time to read 40 pages of economics and 30 pages of sociology Alternatively, she could read 20 pages of economics and 70 pages of sociology. Which of these equations describes all combin ations of pages of economics, E, and sociology, S, that she could read over the weekend? (a)E+S=70 (b)E/2+S=50 c)2E+S=110 d)E+S=90 (e) All of the above
CHAPTER 2 Budget Constraint 16 Topic: Budget Constraint Diculty: 0 % Correct Responses: 99 Discrimination Index: 4 Correct Answer: B 2.34 Murphy used to consume 100 units of X and 50 units of Y when the price of X was 2 and the price of Y was 4. If the price of X rose to 5 and the price of Y rose to 7, how much would Murphy's income have to rise so that he could still a ord his original bundle? (a) 600 (b) 450 (c) 300 (d) 900 (e) None of the above. Topic: Budget Constraint Diculty: 0 % Correct Responses: 99 Discrimination Index: 4 Correct Answer: B 2.35 Murphy used to consume 100 units of X and 50 units of Y when the price of X was 2 and the price of Y was 4. If the price of X rose to 6 and the price of Y rose to 8, how much would Murphy's income have to rise so that he could still a ord his original bundle? (a) 800 (b) 600 (c) 400 (d) 1,200 (e) None of the above. Topic: Budget Constraint Diculty: 0 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: C 2.36 This weekend, Martha has time to read 40 pages of economics and 30 pages of sociology. Alternatively, she could read 20 pages of economics and 70 pages of sociology. Which of these equations describes all combinations of pages of economics, E ; and sociology, S; that she could read over the weekend? (a) E + S = 70 (b) E=2 + S = 50 (c) 2E + S = 110 (d) E + S = 90 (e) All of the above
MULTIPLE CHOICE Topic: Budget Constraint Difficulty: 0 9 Correct Responses: 0 Disaiminat ion Inde kend, Mart ha has time to read 40 o nom ics and 30 pages of socio logy. Alternative ly, s he could read 20 pages of econom ics and 110 pages of sociology. Whic h of the e quations descri bes all com binat ions of pages ofeconomics, E, and sociology, S, t hat she could read (a)E+S=70 (c)4E+S=190 d)E+S=130 (e) All of the above Topic Budget Constraint Difficulty: 2 %o Correct R Correct answer: A 2.38 Ads in a slick business m agazine are read by 300 law yers and 1000 M.B. As. Ads in a consumer public at ion are read by 250 law yers and 300 M: B: A s. If Harry had S 3, 600 to spend d vert ising, if t he price of ads in t he business S600 and t he price of ads in t he consumer m agazine were $300, t hen t he com binat io ns of recent M: B: A: s and lawyers wit h hot tubs w ho m he could reach w it h his ad vertising budget would be re presented by t he integer Values along a line segment t hat runs bet ween t he two point a)(3,000,3,600)and(1,800,6,000 (b)(3,600,4,200)and(1,800,7,200 (c)(0,3,600)and(1,800,0) (d)(3,600,0)and(0,7,200) (e)(2,400,0)and(0,6,000
MULTIPLE CHOICE 17 Topic: Budget Constraint Diculty: 0 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: C 2.37 This weekend, Martha has time to read 40 pages of economics and 30 pages of sociology. Alternatively, she could read 20 pages of economics and 110 pages of sociology. Which of these equations describes all combinations of pages of economics, E ; and sociology, S; that she could read over the weekend? (a) E + S = 70 (b) E=2 + S = 50 (c) 4E + S = 190 (d) E + S = 130 (e) All of the above. Topic: Budget Constraint Diculty: 2 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: A 2.38 Ads in a slick business magazine are read by 300 lawyers and 1000 M.B.A's. Ads in a consumer publication are read by 250 lawyers and 300 M :B :A:0s. If Harry had $ 3,600 to spend on advertising, if the price of ads in the business magazine were $600 and the price of ads in the consumer magazine were $300, then the combinations of recent M :B :A:0s and lawyers with hot tubs whom he could reach with his advertising budget would be represented by the integer values along a line segment that runs between the two points: (a) (3; 000; 3; 600) and (1; 800; 6; 000). (b) (3; 600; 4; 200) and (1; 800; 7; 200). (c) (0; 3; 600) and (1; 800; 0). (d) (3; 600; 0) and (0; 7; 200). (e) (2; 400; 0) and (0; 6; 000)
CHAPTER 2 Budget Constraint Topic: Budget Constraint Difficulty y Correct Responses: o Correct Answer: A 2.39 Ads in a slick business magazine are read by 300 lawyers and 1000 M. B.As. Ads in a consumer publication are read by 250 lawyers and 300 M. B A ' s. If Harry had S 2, 600 to spend n advertising, if the price of ads in the business magazine were $100 and the price of ads in the consumer magazine were $200, then the combinations of recent M. B._A. 's and lawyers with hot tub whom he could reach wit h his advertising budget would be represented by the integer values along a line segment t hat runs bet ween the two points (a)(3,250;3,900)and(1,950;6,500 (b)(3,900;4,550)and(1,950;7,800 (c)(0;3;,900)and(1,950;0) (d)(3,900;0)and(0;7,800 e)(2,600;0)and(0;6,500 Tor Budget Cons Difficulty: 2 Discrimination Index: 47 Correct Answer: B 2.40 In the economy of Mungo, discussed in your workbook, there is a third person called Ike. Ike has a red income of 56 and a bl ue income of 10.(Recall that bl ue prices are 1 bcu [bl ue currency unit] per unit of ambrosia and 1 bcu per unit of bubblegum. Red prices are 2 rcus [red currency nits] per unit of ambrosia and 6 rcus per unit of bubblegum. You have to pay twice for w hat you buy, once in red currency, once in bl ue currency. )If Ike spends all of his blue income, but not all f his red income, then it must be that es at least 9 units of bubblegu (b)he consumes at least l units of ambrosia (c he consumes exactly twice as much bubblegum as ambrosia d) he consumes at least 17 units of bubblegum (e) he consumes equal amounts of ambrosia and bubblegum
CHAPTER 2 Budget Constraint 18 Topic: Budget Constraint Diculty: 2 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: A 2.39 Ads in a slick business magazine are read by 300 lawyers and 1000 M.B.A's. Ads in a consumer publication are read by 250 lawyers and 300 M :B :A:0s. If Harry had $ 2,600 to spend on advertising, if the price of ads in the business magazine were $400 and the price of ads in the consumer magazine were $200, then the combinations of recent M :B :A:0s and lawyers with hot tubs whom he could reach with his advertising budget would be represented by the integer values along a line segment that runs between the two points: (a) (3; 250; 3; 900) and (1; 950; 6; 500). (b) (3; 900; 4; 550) and (1; 950; 7; 800). (c) (0; 3; 900) and (1; 950; 0). (d) (3; 900; 0) and (0; 7; 800). (e) (2; 600; 0) and (0; 6; 500). Topic: Budget Constraint Diculty: 2 % Correct Responses: 60 Discrimination Index: 47 Correct Answer: B 2.40 In the economy of Mungo, discussed in your workbook, there is a third person called Ike. Ike has a red income of 56 and a blue income of 10. (Recall that blue prices are 1 bcu [blue currency unit] per unit of ambrosia and 1 bcu per unit of bubblegum. Red prices are 2 rcus [red currency units] per unit of ambrosia and 6 rcus per unit of bubblegum. You have to pay twice for what you buy, once in red currency, once in blue currency.) If Ike spends all of his blue income, but not all of his red income, then it must be that: (a) he consumes at least 9 units of bubblegum. (b) he consumes at least 1 units of ambrosia. (c) he consumes exactly twice as much bubblegum as ambrosia. (d) he consumes at least 17 units of bubblegum. (e) he consumes equal amounts of ambrosia and bubblegum
MULTⅠ PLE CHOICE pic. Budget Const raint Difficulty Correct Answer. B 2.41 In the economy of Mungo, discussed in your workbook, there is a third person called Ike Ike has a red income of 4, and a bl ue income of 1/.(Recall that bl ue prices are 1 bcu [blue currency unit per unit of ambrosia and 1 bcu per unit of bubblegum. Red prices are 2 rcus [red currency units] per unit of ambrosia and 6 rcus per unit of bubblegum. You have to pay twice for what you buy, once in red currency, once in bl ue currency. If Ike spends all of his blue income, but not all f his red income, then it must be that (a)he consumes at least 5 uni ts of bubblegum (b)he consumes at least 5 units of ambrosia (c) he consumes ex actly twice as much bubblegum as ambrosia (dl) he consumes at least 14 units of bubblegum (e) he consumes eq ual amounts of ambrosi a and bubblegum Topic. Budget Constraint Difficulty.2 Correct Responses. 0 Discriminat ion Index 2.42 Deadly Serious, Il, st udying for his M. B.A., consumes only two goods, Wheaties and pens Each pen costs $1. Each box of Wheaties costs $2 but has a"free" pen inside. Pens can be dis carded at no cost. If we draw Serious's budget set with pens plotted on the horizont al axis, then his budget set will be bounded by two line segments wit h slopes (a) zero and -1 zero and-2 (e) zero and+2
MULTIPLE CHOICE 19 Topic: Budget Constraint Diculty: 2 % Correct Responses: 60 Discrimination Index: 47 Correct Answer: B 2.41 In the economy of Mungo, discussed in your workbook, there is a third person called Ike. Ike has a red income of 40 and a blue income of 10. (Recall that blue prices are 1 bcu [blue currency unit] per unit of ambrosia and 1 bcu per unit of bubblegum. Red prices are 2 rcus [red currency units] per unit of ambrosia and 6 rcus per unit of bubblegum. You have to pay twice for what you buy, once in red currency, once in blue currency.) If Ike spends all of his blue income, but not all of his red income, then it must be that: (a) he consumes at least 5 units of bubblegum. (b) he consumes at least 5 units of ambrosia. (c) he consumes exactly twice as much bubblegum as ambrosia. (d) he consumes at least 14 units of bubblegum. (e) he consumes equal amounts of ambrosia and bubblegum. Topic: Budget Constraint Diculty: 2 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: A 2.42 Deadly Serious, II, studying for his M.B.A., consumes only two goods, Wheaties and pens. Each pen costs $1. Each box of Wheaties costs $2 but has a "free" pen inside. Pens can be discarded at no cost. If we draw Serious's budget set with pens plotted on the horizontal axis, then his budget set will be bounded by two line segments with slopes: (a) zero and 1. (b) zero and 2. (c) zero and :5. (d) zero and in nity. (e) zero and +2
CHAPTER 2 Budget Constraint Topic: Budget Constraint Difficulty: 0 y Correct Responses: 78 Discrimination Index: 4 Correct Answer: D 2.43 Suppose there are two goods, the prices of both goods are positive and a consumers income also positive. If the consumer s income doubles and the price of both goods triple a)the consumer's budget line gets steeper and shifts inward (b) the slope of the consumer's budget line does not change but the budget line shifts outward away from (c) the consumer's budget line gets steeper and shifts outward I) the slope of the consumer's budget line does not change but the budget line shifts inw ard toward the (e) the consumer's budget line gets flatter and shifts inward Topic: Budget Constraint %o Correct Responses: 0 Discrimination Index: 0 2.44 Thomas consumes coffee (C) and doughnuts (D).His budget line was described by the equation D=20-2C. At a later time, his budget line could be described by the equation D= 10-C The change between the earlier budget line and the later could be expl ained by the follow ing (a) The price of coffee and Thomas's income both increased (b)The price of coffee increased and Thomas's income decreased (c)The price of coffee decreased and Thomas's income increased I) The price of coffee and Thomas's income both decreased (e) Thomas's utility for doughnuts decreased
CHAPTER 2 Budget Constraint 20 Topic: Budget Constraint Diculty: 0 % Correct Responses: 78 Discrimination Index: 49 Correct Answer: D 2.43 Suppose there are two goods, the prices of both goods are positive and a consumer's income is also positive. If the consumer's income doubles and the price of both goods triple, (a) the consumer's budget line gets steeper and shifts inward. (b) the slope of the consumer's budget line does not change but the budget line shifts outward away from the origin. (c) the consumer's budget line gets steeper and shifts outward. (d) the slope of the consumer's budget line does not change but the budget line shifts inward toward the origin. (e) the consumer's budget line gets atter and shifts inward. Topic: Budget Constraint Diculty: 0 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: B 2.44 Thomas consumes co ee (C) and doughnuts (D). His budget line was described by the equation D = 202C. At a later time, his budget line could be described by the equation D = 10C. The change between the earlier budget line and the later could be explained by the following. (a) The price of co ee and Thomas's income both increased. (b) The price of co ee increased and Thomas's income decreased. (c) The price of co ee decreased and Thomas's income increased. (d) The price of co ee and Thomas's income both decreased. (e) Thomas's utility for doughnuts decreased