chocolates and 2 hard candies

the following combinations is on the consumer's budget line? Multiple Choice • 4A and 9B • 5A and 6B • 6A and 6B • 3A and 8B

Rosa received a corgi pillow as a raffle prize; she would have been willing to pay $20 to buy it herself. Based on the endowment effect, we would expect Rosa to be willing to sell the pillow Multiple Choice • for some amount less than $20. • only if she is offered more than $20. • for the $20 she would have been willing to pay for the pillow. • under no circumstances whatsoever.

The table shows an indifference schedule for several combinations of X and Y.

Combination Quantity of X Quantity of Y a 20 1 b 16 2 c 12 3 d 10 4 e 9 5

In moving from combination a to b, the consumer Multiple Choice • gets 8 units of X for 2 units of Y. • gets 1 unit of X for 4 units of Y. • gives up 4 units of X for 2 units of Y. • gives up 4 units of X for 1 unit of Y.

Assume that a consumer purchases a combination of products Y and Z and that the MUy/Py = 30/2 and MUz/Pz = 45/3. To maximize utility, without spending more money, the consumer should Multiple Choice • purchase less of Y and more of Z. • purchase more of Y and less of Z. • purchase more of both Y and Z. • make no change in the quantities Y and Z.

The table shows an indifference schedule for several combinations of X and Y.

Combination Quantity of X Quantity of Y a 20 1 b 16 2 c 12 3 d 10 4 e 9 5

Approximately how much of Y is the consumer willing to give up to obtain the twentieth unit of X? Multiple Choice • 4 • 1/4 • 2 • 1/2

If you purchase a gift worth $12 for your sister, but your sister would be willing to pay only $8 if she bought the item for herself, then the Multiple Choice • total utility of the gift is $20. • total utility of the gift is $4. • marginal utility of the gift is $4. • loss of value in the gift is $4.

A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 20 cents and hard candies 95 cents each. The marginal utilities derived from each product are as shown in the following table.

Number of Items MU of Chocolates MU of Hard Candies 1 60 150 2 50 140 3 40 120 4 30 100 5 20 80 6 10 70 7 5 50 8 0 20

If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases? Multiple Choice

• a hard candy, followed by another chocolate • a hard candy, followed by a hard candy • a chocolate, followed by a hard candy • a chocolate, followed by another chocolate

Answer the question on the basis of the following total utility data for products L and M. Assume that the prices of L and M are $6 and $2, respectively, and that the consumer's income is $22

Units of L Total Utility Units of M Total Utility 1 9 1 16 2 15 2 28 3 18 3 36 4 20 4 40 5 21 5 42

What level of total utility does the rational consumer realize in equilibrium? Multiple Choice • 186 utils • 49 utils • 57 utils • 63 utils

Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K.

Units of J MUj Units of K MUk 1 56 1 32 2 48 2 28 3 32 3 24 4 24 4 20 5 20 5 12 6 16 6 10 7 12 7 8

What level of total utility is realized from the equilibrium combination of J and K, if the consumer has a money income of $36 and the prices of J and K are $4 and $4, respectively? Multiple Choice • 238 utils • 280 utils • 284 utils • 40 utils

Tony ran a marathon in 4.5 hours; his performance last year on the same course was 4 hours. Stacey ran the same marathon in 4 hours; her previous time was 4.4 hours. According to behavioral economists, and based solely on the information given, we would expect Multiple Choice • Tony to feel good about his performance, and Stacey to feel good about hers. • Tony to feel bad about his performance, and Stacey to feel good about hers. • Tony to feel bad about his performance, and Stacey to feel bad about hers. • Tony to feel good about his performance, and Stacey to feel bad about hers.

The first Pepsi yields Craig 12 units of utility and the second yields him an additional 15 units of utility. His total utility from three cans of Pepsi is 36 units of utility. The marginal utility of the third Pepsi is Multiple Choice • 21 units of utility. • 27 units of utility. • 9 units of utility. • 36 units of utility.

A consumer is in equilibrium and is spending income in such a way that the marginal utility of product X is 40 units and that of Y is 16 units. If the unit price of X is $5, then the price of Y must be Multiple Choice • $1 per unit. • $2 per unit. • $3 per unit. • $4 per unit.

The table shows the utility schedule for a consumer of candy bars.

Number Consumed Total Utility 0 0 1 5 2 11 3 18 4 24 5 30 6 35 7 32

Based on the data in the table, you can conclude that the Multiple Choice • marginal utility of the sixth unit is 210. • marginal utility of the third unit is 18. • total utility of 2 units is 16. • total utility of 5 units is 30.

Assume that a consumer purchases a combination of product A and product B such that the MUa/Pa = 4 and MUb/Pb = 6. To maximize utility without spending more money, the consumer should Multiple Choice • purchase more of product A and less of product B.In • purchase less of product A and more of product B. • purchase more of both product A and product B. • make no change in purchases of products A and B.

If the marginal utility from consuming the ninth unit of a product is 3 and the total utility from all nine units is 115, then the total utility from consuming eight units must be Multiple Choice • 118.In • 38. • 112. • 1,035.

Mrs. Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are $0.6 per bottle and $0.4 per bag, respectively. It can be concluded that Multiple Choice • the two commodities are substitute goods. • Mrs. Arnold should spend more on pretzels and less on soda. • Mrs. Arnold should spend more on soda and less on pretzels. • Mrs. Arnold is buying soda and pretzels in the utility-maximizing amounts.

Suppose Justine and Sarah are playing the dictator game. Justine is the dictator and has $100 to allocate. Based on repeated experiments of the dictator game, what is the least likely outcome for this game? Multiple Choice • $100 for Justine and $0 for Sarah.In • $58 for Justine and $42 for Sarah.

• $50 for Justine and $50 for Sarah. • $0 for Justine and $100 for Sarah.