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 Adams budget line if the quantity of pizza is measured on the x axis?...
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Exam_2_PINK_Econ_251_Fall_2009 - ECON 251 Exam #2 Pink...

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