Deck 4: A: Choice

Question 1

In Problem 1, Charlie has a utility function U(x_A, x_B) = x_Ax_B, the price of apples is $1, and the price of bananas is $2. If Charlie's income were $320, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

A) 80
B) 40
C) 160
D) 16
E) 240

Answer 1

A

Question 2

In Problem 2, Clara's utility function is U(X, Y) = (X + 2)(Y + 1). If Clara's marginal rate of substitution is -6 and she is consuming 8 units of good X, how many units of good Y is she consuming?

A) 59
B) 6
C) 60
D) 14
E) 13

Answer 2

A

Question 3

Charlie's utility function is U(x_A, x_B) = x_Ax_B. If Charlie's income were $40, the price of apples were $4, and the price of bananas were $6, how many apples would there be in the best bundle that Charlie could afford?

A) 8
B) 10
C) 12
D) 9
E) 5

Answer 3

E

Question 4

In Problem 3, Ambrose's utility is U(x₁, x₂) = . If the price of nuts (good 1) is $1, the price of berries (good 2) is $4, and his income is $132, how many units of nuts will Ambrose choose?

A) 64
B) 17
C) 128
D) 67
E) 32

Question 5

In Problem 1, Charlie has a utility function U(x_A, x_B) = x_Ax_B, the price of apples is $1, and the price of bananas is $2. If Charlie's income were $160, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

A) 80
B) 40
C) 8
D) 20
E) 120

Question 6

In Problem 2, Clara's utility function is U(X, Y) = (X + 2)(Y + 1). If Clara's marginal rate of substitution is -2 and she is consuming 10 units of good X, how many units of good Y is she consuming?

A) 2
B) 24
C) 12
D) 23
E) 5

Question 7

In Problem 3, Ambrose's utility is U(x₁, x₂) = . If the price of nuts (good 1) is $1, the price of berries (good 2) is $7, and his income is $238, how many units of nuts will Ambrose choose?

A) 6
B) 196
C) 392
D) 199
E) 98

Question 8

In Problem 2, Clara's utility function is U(X, Y) = (X + 2)(Y + 1). If Clara's marginal rate of substitution is -4 and she is consuming 10 units of good X, how many units of good Y is she consuming?

A) 48
B) 14
C) 4
D) 47
E) 9

Question 9

Charlie's utility function is U(x_A, x_B) = x_Ax_B. If Charlie's income were $40, the price of apples were $2, and the price of bananas were $6, how many apples would there be in the best bundle that Charlie could afford?

A) 4
B) 20
C) 5
D) 6
E) 10

Question 10

Charlie's utility function is U(x_A, x_B) = x_Ax_B. If Charlie's income were $40, the price of apples were $5, and the price of bananas were $8, how many apples would there be in the best bundle that Charlie could afford?

A) 8
B) 11
C) 10
D) 15
E) 4

Question 11

In Problem 3, Ambrose's utility is U(x₁, x₂) = . If the price of nuts (good 1) is $1, the price of berries (good 2) is $4, and his income is $104, how many units of nuts will Ambrose choose?

A) 67
B) 128
C) 64
D) 10
E) 32

Question 12

In Problem 1, Charlie has a utility function U(x_A, x_B) = x_Ax_B, the price of apples is $1, and the price of bananas is $2. If Charlie's income were $200, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

A) 25
B) 10
C) 100
D) 50
E) 150

Question 13

Charlie's utility function is U(x_A, x_B) = x_Ax_B. If Charlie's income were $40, the price of apples were $2, and the price of bananas were $5, how many apples would there be in the best bundle that Charlie could afford?

A) 20
B) 6
C) 4
D) 5
E) 10

Question 14

In Problem 2, Clara's utility function is U(X, Y) = (X + 2)(Y + 1). If Clara's marginal rate of substitution is -6 and she is consuming 8 units of good X, how many units of good Y is she consuming?

A) 14
B) 60
C) 59
D) 6
E) 13

Question 15

In Problem 1, Charlie has a utility function U(x_A, x_B) = x_Ax_B, the price of apples is $1, and the price of bananas is $2. If Charlie's income were $160, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

A) 8
B) 40
C) 20
D) 80
E) 120

Question 16

In Problem 1, Charlie has a utility function U(x_A, x_B) = x_Ax_B, the price of apples is $1, and the price of bananas is $2. If Charlie's income were $400, how many units of bananas would he consume if he chose the bundle that maximized his utility subject to his budget constraint?

A) 100
B) 20
C) 200
D) 50
E) 300

Question 17

In Problem 3, Ambrose's utility is U(x₁, x₂) = . If the price of nuts (good 1) is $1, the price of berries (good 2) is $4, and his income is $108, how many units of nuts will Ambrose choose?

A) 128
B) 64
C) 67
D) 11
E) 32

Question 18

Charlie's utility function is U(x_A, x_B) = x_Ax_B. If Charlie's income were $40, the price of apples were $2, and the price of bananas were $3, how many apples would there be in the best bundle that Charlie could afford?

A) 6
B) 20
C) 4
D) 5
E) 10

Question 19

In Problem 3, Ambrose's utility is U(x₁, x₂) = . If the price of nuts (good 1) is $1, the price of berries (good 2) is $6, and his income is $186, how many units of nuts will Ambrose choose?

A) 288
B) 144
C) 147
D) 7
E) 72

Question 20

In Problem 2, Clara's utility function is U(X, Y) = (X + 2)(Y + 1). If Clara's marginal rate of substitution is -5 and she is consuming 15 units of good X, how many units of good Y is she consuming?

A) 5
B) 85
C) 20
D) 84
E) 11

Question 21

In Problem 6, Elmer's utility function is U(x, y) = min{x, y²}. If the price of x is $20, the price of y is $30, and Elmer chooses to consume 4 units of y, what must Elmer's income be?

A) $540
B) $880
C) $440
D) $200
E) There is not enough information to tell.

Question 22

Ambrose's utility function is . If the price of nuts (good 1) is $1, the price of berries (good 2) is $9, and his income is $369, how many units of berries will Ambrose choose?

A) 10
B) 4
C) 325
D) 5
E) 8

Question 23

Ambrose's utility function is . If the price of nuts (good 1) is $1, the price of berries (good 2) is $5, and his income is $190, how many units of berries will Ambrose choose?

A) 36
B) 101
C) 18
D) 17
E) 21

Question 24

In Problem 6, Elmer's utility function is U(x, y) = min{x, y²}. If the price of x is $20, the price of y is $20, and Elmer chooses to consume 8 units of y, what must Elmer's income be?

A) $2,880
B) $320
C) $1,540
D) $1,440
E) There is not enough information to tell.

Question 25

Ambrose's utility function is . If the price of nuts (good 1) is $1, the price of berries (good 2) is $7, and his income is $259, how many units of berries will Ambrose choose?

A) 8
B) 197
C) 9
D) 18
E) 12

Question 26

In Problem 6, Elmer's utility function is U(x, y) = min{x, y²}. If the price of x is $25, the price of y is $10, and Elmer chooses to consume 5 units of y, what must Elmer's income be?

A) $1,350
B) $175
C) $775
D) $675
E) There is not enough information to tell.

Question 27

In Problem 7, what bundle would Linus choose if the price of x is $2, the price of y is $4, and his income is $24?

A) (0, 6)
B) (12, 0)
C) (12, 6)
D) (6, 3)
E) (6, 6)

Question 28

In Problem 6, Elmer's utility function is U(x, y) = min{x, y²}. If the price of x is $15, the price of y is $30, and Elmer chooses to consume 2 units of y, what must Elmer's income be?

A) $240
B) $90
C) $220
D) $120
E) There is not enough information to tell.

Question 29

Ambrose's utility function is . If the price of nuts (good 1) is $1, the price of berries (good 2) is $6, and his income is $198, how many units of berries will Ambrose choose?

A) 145
B) 9
C) 18
D) 8
E) 12

Question 30

In Problem 6, Elmer's utility function is U(x, y) = min{x, y²}. If the price of x is $15, the price of y is $20, and Elmer chooses to consume 7 units of y, what must Elmer's income be?

A) $245
B) $1,750
C) $975
D) $875
E) There is not enough information to tell.

Question 31

Ambrose's utility function is . If the price of nuts (good 1) is $1, the price of berries (good 2) is $10, and his income is $460, how many units of berries will Ambrose choose?

A) 401
B) 5
C) 6
D) 12
E) 9