Exam_2_PINK_Econ_251_Fall_2009

Exam_2_PINK_Econ_251_Fall_2009 - ECON 251 Exam#2 Pink...

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Unformatted text preview: ECON 251 Exam #2 Pink Spring 2009 0001 Aubry, Amandine Monday / Wednesday / Friday 7:30 – 8:20 a.m. 0002 Aubry, Amandine Monday / Wednesday / Friday 8:30 – 9:20 a.m. 0003 Jeon, Joo Young Monday / Wednesday / Friday 9:30 – 10:20 a.m. 0004 Jeon, Joo Young Monday / Wednesday / Friday 10:30 – 11:20 a.m. 0007 Blanchard, Kelly Tuesday / Thursday 9:00 – 10:15 a.m. 0008 Blanchard, Kelly Tuesday / Thursday 1:30 – 2:45 p.m. 0009 Cristea, Anca Tuesday / Thursday 4:30 – 5:45 p.m. 1. Adrienne consumes only pasta and rice. With her \$50 weekly income, she can afford to buy 5 pounds of rice or 10 pounds of pasta. This implies her budget line equation is which of the following? a. Qpasta= -2 Qrice +10 b. Qpasta= 2 Qrice +10 c. Qrice= -2 Qpasta +10 d. Qrice= 2 Qpasta+10 Brian consumes only burritos and Coke with his \$20 weekly income. The table below describes his marginal utility for each quantity. Quantity per week Marginal utility burritos Glasses of Coke 1 50 60 2 40 50 3 20 30 4 10 20 5 5 10 2. If burritos are \$5 each and Coke is \$2 per glass, which combination maximizes his utility given his \$20 income? a. (1 burritos, 2 cokes) b. (2 burritos, 4 cokes) c. (2 burritos, 5 cokes) d. (4 burritos, 5 cokes) 3. When the consumer is at his or her best affordable consumption point, the marginal rate of substitution is a. greater than the ratio of the price of good ‘x’ to the price of good ‘y’ (Px/Py) b. equal to the ratio of the price of good ‘x’ to the price of good ‘y’ (Px/Py) c. less than the ratio of the price of good ‘x’ to the price of good ‘y’ (Px/Py) d. maximized. 4. Which of the following is true about an indifference curve: a. It always has a negative slope b. Indifference curves with higher utility are closest to the origin c. The slope of the indifference curve gets steeper as consumption of good ‘x’ increases d. Both a and b 5. According to the shape of the indifference curves represented in the graph below, what can we say about the two goods, Pepsi and Coke: a. They are perfect substitutes b. They are perfect complements c. They are Giffen goods d. None of the above 6. Adam has an income of \$50 and consumes only Pizza and coke. The price for one pizza is \$7 and a bottle of coke costs \$6. What is the slope of Adam’s budget line if the quantity of pizza is measured on the x axis?...
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This note was uploaded on 04/04/2012 for the course MGMT 251 taught by Professor Jeon,jooyoung during the Fall '09 term at Purdue.

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Exam_2_PINK_Econ_251_Fall_2009 - ECON 251 Exam#2 Pink...

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