Deck 5: Extension: A: Choice

Question 1

Ambrose's utility is U(x₁, x₂)== 4x^1/2₁ + 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

Answer 1

64

Question 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

Answer 2

47

Question 3

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

Answer 3

100

Question 4

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 5

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 6

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 7

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 8

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 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 $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 10

Ambrose's utility is U(x₁, x₂)= = 4x^1/2₁ + 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 11

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 12

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 13

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 14

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

Question 15

Ambrose's utility is U(x₁, x₂)= =4x^1/2₁ + 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 16

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

Question 17

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 18

Ambrose's utility is U(x₁, x₂)= = 4x^1/2₁ + 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 19

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

Question 20

Ambrose's utility is U(x₁, x₂)= = 4x^1/2₁ + 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 21

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 22

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 23

Ambrose's utility function is = 4x^1/2₁ + x₂.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 24

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 25

Ambrose's utility function is = 4x^1/2₁ + x₂.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 26

Ambrose's utility function is = 4x^1/2₁ + x₂.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 27

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 28

Ambrose's utility function is = 4x^1/2₁ + x₂.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 29

Ambrose's utility function is = 4x^1/2₁ + x₂.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

Question 30

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

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.