Exam1 - Econ 3070-008 Fall 2007 Name Exam 1 Multiple...

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Econ 3070-008 Fall 2007 Name Exam 1 Multiple Choice: Choose the best answer (24 points) 1. If the cross price elasticity Laurinaitis jersey’s for Troy Smith jersey’s is equal to 0.8, we can conclude that: a. demand for Laurinaitis is elastic b. Laurinaitis and Smith jersey’s are substitutes c. Laurinaitis and Smith jersey’s are complements d. demand for Smith jersey’s are inelastic 2. If bundles of goods A and B lie on the same indifference curve, one can assume the individual a. prefers bundle A to bundle B b. prefers bundle B to bundle A c. enjoys bundle A and B equally d. bundle A contains the same goods as bundle B 3. If utility is given by U(x, y) = Min(x, 3y) then the bundle (3, 2) provides the same utility as the bundle a. (1, 3) b. (2, 3) c. (4, 1) d. (4, 2) 4. Suppose and Andy’s MRS steak for beer is 2. He likes both steak and beer, and each additional unit of steak or beer is less satisfying than the last. Suppose also that the price of steak is $1 and the price of beer is $0.25. Then in order to increase utility the Andy should a. buy more steak and less beer b. buy more beer and less steak c. continue with current consumption 5. If Bobby’s indifference curve map does not obey the assumption of diminishing
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This note was uploaded on 02/06/2009 for the course ECON 3070 taught by Professor Loh,joyce during the Fall '07 term at Colorado.

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Exam1 - Econ 3070-008 Fall 2007 Name Exam 1 Multiple...

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