MULTIPLE CHOICE Topic: Pn Difficulty: 0 Correct Responses: 92 Discrimination Index: 19 t answer: E 3.14 Charlie's indifference curves have the equation xB= constant/xA, where larger const ants denote better indi ference curves. Charlie st rictly prefers the bundle (10, 19)to the bundl (c)(15,15) (d) more than one of these bundles (e) none of these bundles Topic: Preferences f Correct Responses: 92 Discrimination Index: 19 3.15 Charlies indifference curves have the equation x B= constant/xA, wh denote better indifference curves. Charlie strictly prefers the bundle ( 9, 19) to the bundle (b)(10,18) c)(12,15) (d) more than one of these bi (e) none of these bundles Difficulty: Correct Responses: 77 Discrimination Index: 1 Correct Answer: C 3.16 Ambrose has indifference curves wit h the equation x2= con where larger con st ants correspond to higher indifference curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indifference curve when his consumption bundle is(16, 9)? a)-16/9 (c)-0:50 e)-4
MULTIPLE CHOICE 31 Topic: Preferences Diculty: 0 % Correct Responses: 92 Discrimination Index: 19 Correct Answer: E 3.14 Charlie's indi erence curves have the equation xB = constant=xA; where larger constants denote better indi erence curves. Charlie strictly prefers the bundle (10; 19) to the bundle: (a) (19; 10). (b) (11; 18). (c) (15; 15). (d) more than one of these bundles. (e) none of these bundles. Topic: Preferences Diculty: 0 % Correct Responses: 92 Discrimination Index: 19 Correct Answer: E 3.15 Charlie's indi erence curves have the equation xB = constant=xA; where larger constants denote better indi erence curves. Charlie strictly prefers the bundle (9; 19) to the bundle: (a) (19; 9). (b) (10; 18). (c) (12; 15). (d) more than one of these bundles. (e) none of these bundles. Topic: Preferences Diculty: 2 % Correct Responses: 77 Discrimination Index: 17 Correct Answer: C 3.16 Ambrose has indi erence curves with the equation x2 = constant 4x 1=2 1 where larger constants correspond to higher indi erence curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indi erence curve when his consumption bundle is (16; 9)? (a) 16=9 (b) 9=16 (c) 0:50 (d) 13 (e) 4
chaPter 3 Preferences Topic: Preferences Difficulty: 2 y Correct Responses: 7 Discriminat ion Index: 17 Correct Answer: C 3.17 Ambrose has indifference curves with the equation x2/ constant-4x1 where larger con st ants correspond to higher indi fference curves. If good I is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indifference curve when his consumption bundle is (9, 14)? (a)-9=14 (c)-0:67 (e)-3 Topic: Preferences Diffic Correct Responses at ion Index: 4 r: A 3.18 Nancy Lerner is taking a course from Professor Good heart who will count only her best midterm grade and from Professor Stern who will count only her worst midterm grade. In one of her classes, Nancy has scores of 40 on her first midterm and 50 on her second midterm. When the first midterm score is measured on the horizont al axis and her second midterm score on t he vertical, her indifference curve has a slope of zero at the point (40, 50). Therefore it must be that (a) this cl ass could be Professor Goodl but couldn't be professor stern s b) this class could be Professor Stern's, but couldn't be Professor Goodheart (c) this cl ass couldn't be either Goodheart's or Stern's (d) this class could be either Goodheart's or Stern's (e) None of the other options are correct
CHAPTER 3 Preferences 32 Topic: Preferences Diculty: 2 % Correct Responses: 77 Discrimination Index: 17 Correct Answer: C 3.17 Ambrose has indi erence curves with the equation x2 = constant 4x 1=2 1 where larger constants correspond to higher indi erence curves. If good 1 is drawn on the horizontal axis and good 2 on the vertical axis, what is the slope of Ambrose's indi erence curve when his consumption bundle is (9; 14)? (a) 9=14 (b) 14=9 (c) 0:67 (d) 17 (e) 3 Topic: Preferences Diculty: 2 % Correct Responses: 93 Discrimination Index: 4 Correct Answer: A 3.18 Nancy Lerner is taking a course from Professor Goodheart who will count only her best midterm grade and from Professor Stern who will count only her worst midterm grade. In one of her classes, Nancy has scores of 40 on her rst midterm and 50 on her second midterm. When the rst midterm score is measured on the horizontal axis and her second midterm score on the vertical, her indi erence curve has a slope of zero at the point (40; 50). Therefore it must be that: (a) this class could be Professor Goodheart's, but couldn't be Professor Stern's. (b) this class could be Professor Stern's, but couldn't be Professor Goodheart's. (c) this class couldn't be either Goodheart's or Stern's. (d) this class could be either Goodheart's or Stern's. (e) None of the other options are correct
MUⅠ TIP LE CHOICE opic: Preferen Difficulty y Correct Responses: 93 Discrimination Index: 4 Correct Answer: A 3.19 Nancy Lerner is ta king a course from Pro fessor Good heart w ho will count only her best m idterm grade and from Professor Stern w ho will count only her worst midterm grade. In one of r classes, Nancy has scores of 70 on her first mid term and 60 on her second mid term. When t he first midterm score is m easured on t he horizont al axis and her second midterm score on t he Vertical, her indifference curve has a slope of Zero at t he point(70, 60). T herefore it m ust be t hat (a)this cl ass could be Professor Goodheart's, but couldnt be Professor Stern's (b) this class could be Professor Stern's, but couldn't be Professor Goodheart's (c) this cl ass couldnt be either Good hearts or Stern's (d) this class could be either Goodheart's or Sterns (e) None of the other options are correct Topic: Preferences y Correct Responses: 56 Discriminat ion Index: 65 rrect Answer: D we graph Mary granola's indifference curVes w it h avocados on t he horizontal axis and al axis, t hen whene ver she ha t he Mary would be indifferent bet ween a bund s more avocados t han grapefruits, t he slope is -1= her indifference curve Whene ver s he has th 11 avocados and 23 grape fruits and anot he bundle t hat has 19 avocados and fruits Defruit (d)13 grapefruit (e)14 grapefruits
MULTIPLE CHOICE 33 Topic: Preferences Diculty: 2 % Correct Responses: 93 Discrimination Index: 4 Correct Answer: A 3.19 Nancy Lerner is taking a course from Professor Goodheart who will count only her best midterm grade and from Professor Stern who will count only her worst midterm grade. In one of her classes, Nancy has scores of 70 on her rst midterm and 60 on her second midterm. When the rst midterm score is measured on the horizontal axis and her second midterm score on the vertical, her indi erence curve has a slope of zero at the point (70; 60). Therefore it must be that: (a) this class could be Professor Goodheart's, but couldn't be Professor Stern's. (b) this class could be Professor Stern's, but couldn't be Professor Goodheart's. (c) this class couldn't be either Goodheart's or Stern's. (d) this class could be either Goodheart's or Stern's. (e) None of the other options are correct. Topic: Preferences Diculty: 2 % Correct Responses: 56 Discrimination Index: 65 Correct Answer: D 3.20 If we graph Mary Granola's indi erence curves with avocados on the horizontal axis and grapefruits on the vertical axis, then whenever she has more grapefruits than avocados, the slope of her indi erence curve is 2. Whenever she has more avocados than grapefruits, the slope is 1=2. Mary would be indi erent between a bundle with 11 avocados and 23 grapefruits and another bundle that has 19 avocados and: (a) 15 grapefruits. (b) 19 grapefruits. (c) 11 grapefruits. (d) 13 grapefruits. (e) 14 grapefruits
CHAPTER 3 Preferences Topic: Preferences Difficulty: 2 Correct Responses: 56 Discrimination index: 65 rect Answer: D 3.21 If we graph Mary Granolas indifference curVes wit h avocados on t he horizont al axis and grapefruits on t he Vertical axis, t he n w he ne Ver s he has more grapefruits t han avocados, t he slope of her indifference curVe is -2. Whe ne ver s he has more avocados t han grapefruits, t he slope is -1=2 rent n a bundle wit h 24 aVocados and 36 grapefruits and anot her bundle t hat has 32 avocados and (a)28 grapefruit ts (b)32 (d)26 grapefruits T Difficulty: 2 Correct Respons Discrimination Index: 29 Correct Answer: B bundle for Tom my by t he sum of t he a bsolute values of t he differences. Her favorite bund le for Tom my is (2, 7)--that is, 2 co o kies and 7 glasses of milk. Tom my's mot her's indifference curVe hat passes t hrough t he point (c 4) hrough (a) the point(8, 1) (c)the point(2, 7) (d) the points(5, 7),(2, 4),and(2, 10) (e)None of the above
CHAPTER 3 Preferences 34 Topic: Preferences Diculty: 2 % Correct Responses: 56 Discrimination Index: 65 Correct Answer: D 3.21 If we graph Mary Granola's indi erence curves with avocados on the horizontal axis and grapefruits on the vertical axis, then whenever she has more grapefruits than avocados, the slope of her indi erence curve is 2. Whenever she has more avocados than grapefruits, the slope is 1=2. Mary would be indi erent between a bundle with 24 avocados and 36 grapefruits and another bundle that has 32 avocados and: (a) 28 grapefruits. (b) 32 grapefruits. (c) 24 grapefruits. (d) 26 grapefruits. (e) 27 grapefruits. Topic: Preferences Diculty: 2 % Correct Responses: 75 Discrimination Index: 29 Correct Answer: B 3.22 Recall that Tommy Twit's mother measures the departure of any bundle from her favorite bundle for Tommy by the sum of the absolute values of the di erences. Her favorite bundle for Tommy is (2; 7) that is, 2 cookies and 7 glasses of milk. Tommy's mother's indi erence curve that passes through the point (c; m) = (5; 4) also passes through: (a) the point (8; 1). (b) the points (2; 1); (8; 7); and (5; 10). (c) the point (2; 7). (d) the points (5; 7); (2; 4); and (2; 10). (e) None of the above
MULTIP LE CHOICE Topic: Preferences Difficulty: 2 Correct Responses: 75 Discrimination Index: 29 t Answer: B 23 Recall that Tommy Twits mot her measures the departure of any bundle from her favorite bundle for Tommy by the sum of the a bsolute values of the differences. Her favorite bundle for that passes through the point (c, m)=(3, 6) also passes through my's mot her's indi fference curve Tommy is(2, 7)--that is, 2 cookies and 7 glasses of milk. TomI (a)the poi nt(4, 5) (b)the points (2, 5),(4, 7), and(3, 8) (c)the point(2, 7) (e) None of the above Topic: Preferences Difficulty:O Correct Responses: 0 Discrimination index 3.24 Schol astica is taking a cl ass from Professor Chaos. Professor Chaos gives two tests in this course and determines a students grade as follows. He calcul ates the smaller of the following two numbers: half of the score on the first test (which is a rel atively easy test and the act ual score on the second test. He gives each st udent a numerical score eq ual to the result of t his calculation and then ranks the st udents. Schol astica would like to be ranked as high as possi ble in Professor Chaos'rankings. If we represent her score on the fi rst ex am on the horizontal axis and her soore (a) are I-shaped with kinks where the two exam scores are equal (b) have sections with a slope -2 and sections with a slope 1/ 2 (c) are posi tively sloped (d) are L-shaped wit h kinks where the exam I score is twice the exam 2 score (e) are straight lines with a slope of -1/2
MULTIPLE CHOICE 35 Topic: Preferences Diculty: 2 % Correct Responses: 75 Discrimination Index: 29 Correct Answer: B 3.23 Recall that Tommy Twit's mother measures the departure of any bundle from her favorite bundle for Tommy by the sum of the absolute values of the di erences. Her favorite bundle for Tommy is (2; 7) that is, 2 cookies and 7 glasses of milk. Tommy's mother's indi erence curve that passes through the point (c; m) = (3; 6) also passes through: (a) the point (4; 5). (b) the points (2; 5); (4; 7); and (3; 8). (c) the point (2; 7). (d) the points (3; 7); (2; 6); and (2; 8). (e) None of the above. Topic: Preferences Diculty: 0 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: D 3.24 Scholastica is taking a class from Professor Chaos. Professor Chaos gives two tests in this course and determines a student's grade as follows. He calculates the smaller of the following two numbers: half of the score on the rst test (which is a relatively easy test) and the actual score on the second test. He gives each studentanumerical score equal to the result of this calculation and then ranks the students. Scholastica would like to be ranked as high as possible in Professor Chaos' rankings. If we represent her score on the rst exam on the horizontal axis and her score on the second exam on the vertical axis, then her indi erence curves: (a) are L-shaped with kinks where the two exam scores are equal. (b) have sections with a slope 2 and sections with a slope 1=2. (c) are positively sloped. (d) are L-shaped with kinks where the exam 1 score is twice the exam 2 score. (e) are straight lines with a slope of 1=2