TEST BANK FOR CHAPTER 2: Utility and Choice
21. Suppose a caffeine-deprived man must get up. Suppose his preferences will be described by.gif"> If the value of espresso is $four and the value of tea is $1, he'll purchase a. all espresso b. all tea c. some of each, however extra espresso d. some of each, however extra tea 22. Suppose a bit woman likes peanut butter and jelly sandwiches with precisely 2T of jelly and 1T of peanut butter. Suppose additional that her mother agrees to make sandwiches to these actual specs and the worth of peanut butter is $.25/T and the value of jelly is $.10/T. If she has $1.eight to spend on peanut butter and jelly components (ignore the bread) in a week, what number of sandwiches will she make? a. 1 b. 2 c. four d. eight 23. If individuals like their items in mounted proportions, the 2 items are a. excellent substitutes b. excellent enhances c. enhances (however not excellent) d. substitutes (however not excellent) 24. If a person’s indifference curves will be represented as a straight line, the particular person views the products as a. excellent substitutes b. excellent enhances c. enhances (however not excellent) d. substitutes (however not excellent) 25. If the federal government imposes a regulation requiring you to save lots of if you in any other case wouldn't have, they're a. truncating a finances line b. shifting a finances line c. altering preferences towards saving d. altering preferences towards consumption 26. Suppose a youngster likes each rap music (R) and nation music (C) with a set of preferences in order that U = C1/2R1/2. Which level (C, R) makes the teenager the happiest? a. four, 16 b. 25, 1 c. 9, 9 d. 16, four 27. Suppose a youngster likes each rap music (R) and nation music (C) with a set of preferences in order that U = C1/2R1/2. Which level (C, R) makes the teenager the happiest? a. 9, 16 b. 36, 1 c. 49, four d. 100, zero 28. Suppose a youngster has $20 and likes each rap music (R) and nation music (C) with a set of preferences in order that U = C1/2R1/2. Suppose that the iTunes worth of a rap music track is.gif"> and the value of a nation music track is.gif">. Which degree of utility is reasonably priced? a. .gif"> b. 9 c. 16 d. 25 29. Suppose a youngster has $20 and likes each rap music (R) and nation music (C) with a set of preferences in order that U = C1/2R1/2. Suppose that the iTunes worth of a rap music track is.gif"> and the value of a nation music track is.gif">. What's the best degree of reasonably priced utility? a. 7 b. .gif"> c. eight d. 9 30. Suppose a youngster has $20 and likes each rap music (R) and nation music (C) with a set of preferences in order that U = C1/2R1/2. Suppose that the iTunes worth of a rap music track is.gif"> and the value of a nation music track is.gif">. What degree of utility is unaffordable? a. 6 b. 7 c. .gif"> d. eight