Intermediate macroeconomics exam1

Intermediate Microeconomics: A Modern Approach, Seventh Edition

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ECONOMICS 300 FIRST MIDTERM SPRING 2004 PLEDGE:____________________________ NAME:______________________________ Multiple Choice (3 points each) (48 points total) 1. When a consumer is consuming a bundle on her budget constraint then a. She must be maximizing her utility. b. She must be exhausting her income. c. Her marginal rate of substitution is equal to the opportunity cost. d. None of the above. 2. Bill currently consumes Doritos (D) and Cheese Whiz (C). Doritos cost $5, Cheese Whiz costs $4, and his income is $50. If there is a 50% tax on Doritos, a $2 subsidy of Cheese Whiz and an income tax of $40, then Bill’s new budget constraint would be: a. 90 = 9D + 2C b. 10 = 9D + 2C c. 10 = 7.5D + 2C d. 10 = 7.5D + 6C 3. Sarah insists that she has an increasing marginal utility for Hershey’s Kisses (K). Which graph would best show her Total Utility for Kisses? A B C a. A. b. B. K TU TU K TU K c. C. d. None of the above. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4. If two goods are both desirable and preferences are convex, then: a. There must be a kink in the indifference curve. b. The indifference curves must be straight lines. c. There is a bliss point. d. None of the above. 5. Suppose Nancy always drinks 3 bottles of Gatorade (G) for every 2 Powerbars (P) she eats. She always consumes the goods in this fixed proportion. Her utility for Gatorade and Powerbars could be modelled with the following function. a.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/31/2008 for the course ECON 300 taught by Professor Nonnenmacher during the Spring '08 term at Allegheny.

Page1 / 6

Intermediate macroeconomics exam1 - ECONOMICS 300 FIRST...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online