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Unformatted text preview: 440 QUIZZES (Ch. 36) Quiz 2 NAME The Budget Set 2.1 In Problem 2.1, if you have an income of $12 to spend, if commodity 1 costs $2 per unit, and if commodity 2 costs $6 per unit, then the equation for your budget line can be written as (a) x 1 / 2 + x 2 / 6 = 12. (b) ( x 1 + x 2 ) / (8) = 12. (c) x 1 + 3 x 2 = 6. (d) 3 x 1 + 7 x 2 = 13. (e) 8( x 1 + x 2 ) = 12. 2.2 In Problem 2.3, if you could exactly afford either 6 units of x and 14 units of y , or 10 units of x and 6 units of y , then if you spent all of your income on y , how many units of y could you buy? (a) 26. (b) 18. (c) 34. (d) 16. (e) None of the other options are correct. 2.3 In Problem 2.4, Murphy used to consume 100 units of x and 50 units of y when the price of x was 2 and the price of y was 4. If the price of x rose to 5 and the price of y rose to 8, how much would Murphy’s income have to rise so that he could still afford his original bundle? (a) 700. (b) 500. (c) 350. (d) 1,050. 442 THE BUDGET SET (Ch. 2) (e) None of the other options are correct. 2.4 In Problem 2.7, Edmund must pay $6 each for punk rock video casettes. If Edmund is paid $48 per sack for accepting garbage and if his relatives send him an allowance of $384, then his budget line is de scribed by the equation: (a) 6 V = 48 G . (b) 6 V + 48 G = 384. (c) 6 V − 48 G = 384. (d) 6 V = 384 − G . (e) None of the other options are correct. 2.5 In Problem 2.10, if in the same amount of time that it takes her to read 40 pages of economics and 30 pages of sociology, Martha could read 30 pages of economics and 50 pages of sociology, then which of these equations describes combinations of pages of economics, E , and sociology, S , that she could read in the time it takes to read 40 pages of economics and 30 pages of sociology? (a) E + S = 70. (b) E/ 2 + S = 50. (c) 2 E + S = 110. (d) E + S = 80. (e) All of the above. 2.6 In Problem 2.11, ads in the boring business magazine are read by 300 lawyers and 1,000 M.B.As. Ads in the consumer publication are read by 250 lawyers and 300 M.B.A.’s. If Harry had $3,000 to spend on advertising, if the price of ads in the boring business magazine were $600 and the price of ads in the consumer magazine were $300, then the combinations of recent M.B.A’s and lawyers with hot tubs whom he could reach with his advertising budget would be represented by the integer values along a line segment that runs between the two points (a) (2,500, 3,000) and (1,500, 5,000). (b) (3,000, 3,500) and (1,500, 6,000). (c) (0, 3,000) and (1,500, 0). NAME 443 (d) (3,000, 0) and (0, 6,000). (e) (2,000, 0) and (0, 5,000). 2.7 In the economy of Mungo, discussed in Problem 2.12, there is a third creature called Ike. Ike has a red income of 40 and a blue income of 10. (Recall that blue prices are 1 bcu (blue currency unit) per unit of ambrosia and 1 bcu per unit of bubble gum. Red prices are 2 rcus (red currency units) per unit of ambrosia and 6 rcus per unit of bubble gum....
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This note was uploaded on 05/05/2010 for the course ECONMOICS ECON 203 taught by Professor Josephpetry during the Spring '10 term at University of Illinois, Urbana Champaign.
 Spring '10
 JOSEPHPETRY

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