ch62 - ch6 Multiple Choice Identify the choice that best...

This preview shows pages 1–2. Sign up to view the full content.

ch6 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. If Charlie’s utility function were X 5 A X B , if apples cost 70 cents each, and if bananas cost 10 cents each, Charlie’s budget line would be tangent to one of his indifference curves whenever a. 5 X B = 7 X A . b. X B = X A . c. X A = 5 X B . d. X B = 5 X A . e. 70 X A + 10 X B = M . ____ 2. Ambrose’s brother Anthony has an income of \$75 and a utility function U ( x 1 , x 2 ) . The price of good 1 (nuts) is \$2 and the price of good 2 (berries) is \$1. How many units of nuts will Anthony demand? a. 35 b. 21 c. 23 d. 25 e. 48 ____ 3. Miss Muffett insists on consuming 2 units of whey per unit of curds. If the price of curds is \$5 and the price of whey is \$6, then if Miss Muffett’s income is m , her demand for curds will be a. . b. . c. 5 C + 6 W = m . d. 5 m . e. . ____ 4. Casper’s utility function is 3 x + y , where x is his consumption of cocoa and y is his consumption of cheese. If the total cost of x units of cocoa is x 2 , the price of cheese is \$8, and Casper’s income is \$184, how many units of cocoa will he consume? a. 9 b. 12 c. 23 d. 11 e. 24 ____ 5. If x is whips and y is leather jackets, if Kinko’s utility function is U ( x , y ) = min{ 8 x , 4 x + 16 y }, then if the

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/08/2011 for the course ECON 302 taught by Professor Avrin-rad during the Spring '09 term at University of Illinois, Urbana Champaign.

Page1 / 4

ch62 - ch6 Multiple Choice Identify the choice that best...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online