Economics 301: Quiz 1 (Fall 2010)
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this quiz.
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two until asked
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Section I: True or False
This section
is worth a total of 6 marks.
There are 6 questions worth 1 marks each; answer all of
them. Simply indicate if you think the statement
is true or false.
1. Assume
that for all goods, more is preferred
to less. If Bundles X and Yare lie on the same
indifference curve and preferences
are convex,
then a mixture consisting of 50% of Bundle X
and 50% of Bundle Y will be preferred
to Bundle Y.
True
8
2. Jenna's utility
function is U(ql, q2) = (ql + q2)2.5
+ 24. Her indifference curves are downward
:~.'
parallel straight
lines.
M ~ 5
=
C
~
False
\
~

\
+'2
~'
2X'+'t
Section II: Multiple
Choice
This section is worth a total of 14 marks.
There are 7 questions worth 2 marks each; answer all of
them. Select the best answer from those available.
Wanda Littlemore's utility function is U = x + 47y  3y2. Her income
is $107. If the price of
x is $1 and the price of y is $23, how many units of good x will Wandademand?
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 Winter '08
 CHAPPLE
 Economics, Utility, Colette prefersbundle

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