back start next[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [ 14 ] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75] 14 The equUibrium quantity of cakes in that particular week will be: (a) 5 (b) 4 (c) 3 (d) 2 (e) 124. If "A" and "B" are complemeius. then: va) the higher the price of B, the more people will want to switch into A (b) the lower the price of the greater will be the demand for ( ) the higher the price of B, the more people will want to switch oiu of R and into A (d) the lower the price of A, the more the demand curve for A will shift down (e) the higher the price of B, the more the demand curve for A will increase.25. Cashews are 1/2 dollar per bag and beer is a dollar a can. If the marginal udlit) from consiuning the last bag of cashews is 4 utils, then in equilibrium the marginal utility of the last beer is: (a) 4 utils (b) 8 utils (c) 2 udls (d) 1 mil (e) none of these.26. If cashews are \$5 per pound and beer is S2 per can, then Joe Gaucho will not be in equilibrium unless the rado of marginal udlity of cashe\vs to that of beer is: (a) 2 to 5 (b) 10 to 1 (c) 1 to 10 (d) 5 to 10 (e) none of these.27. Joe Gaucho consumes both apples and oranges. Apples are \$2/lb. and oranges are SI/lb. Which of the following marginal udUty pairs is inconsistent with Joes equilibrium at these prices? (a) MU of apples = 2, MU of oranges = 1 (b) MU of apples - 3, MU of oranges = 2 (c) MU of apples = 8, MU of oranges = 4 (d) MU of apples =10, MU of oranges = 5 (e) MU of apples = 6, MU of oranges = 328. Suppose in #27 that apples cost 1 1/2 times as much as oranges. Which marginal udlir\ pair above is consistent with equilibrium? (a) (b) (c) (d) (e).29. Consumers in Minneapolis are prepared to buy 300,000 cakes at a price of \$2 per cake. If the qviantit) demanded will increase by 10,000 cakes lor each 10 reduction in the price and will decrease by 10.000 cakes for each 10 increase in the price, consumer surplus at \$2 will be: (a) \$90.000 (b)S45.000 (c) 0 (d) \$600,000 (e) none of the above.30. By how much would.consumer surpliLS in #29 increase if price decreased from S2 to SI per cake? (a) \$700,000 (b) \$455,000, (c) 155.000 (d) \$365,000 (e) none of these.31. The demand schedules for blueberries of a cerl tain household in 1982 and 1983 are as follows:Price/Basket \$3.00 \$2.50 \$2.00 \$1.50 \$1.00 \$.50 Otv (1982) 0 0 1 2 3 4 Oxs (1983) 1 2 3 4 5 6If in 1982 the price of blueberries dropped from \$2.0o1 per basket to \$1.50, then: (a) demand would increa from 1 to 2 baskets (b) the consumer surplus woul( fall (c) the marginal utilit) of blueberries supplje would rise (d) the consumer would want to sell bluej berries (e) none of the above.32. Based upon the data in the quesdon above, it safe to say that: (a) demand increased (b) suppW increased (c) tastes changed in favor of blueberrid(d) the going price of blueberries must have change(e) none of the above.33. Given the information in quesdon 31 and fact that the households income rose between 1 and 1983, we would conjecture that blueberries probably: (a) normal goods (b) necessities (c) infe rior goods (d) exceptions to the la\v of demanj (e) none of the above.34. If blueberries were priced at 500 per box both years, then the gain in consumer su Ius froij 1982 to 1983 was approximately: (a) \$8.50 (b) \$5.(c) zero (d) \$3.50 (e) none ofthe above.35. \Aniich of the follo\ving will increase Pauls cofl sumer surplus from wine drinking ceteris paribuf (a) a decrease in die price of cheese, a complement ( wine (b) a n increase in Pauls income (c) a decrea in the price of wine (d) an increase in the price beer, a subsdtute (e) all of the above.36. Maximizing total utility necessarily mean (a) the marginal utilit) of each good pvirchased is th .same (b) total titility received from each good is thj same (c) the amount spent on each good is the sat(d) the price of each good is the same (e) none of th above.37. consvimer with an income of S30 is face with choosing between yoyos and xylophones whic are priced at \$2 and \$10 respectively The total vitili derived from each of the t\vo goods is as follows:Demand > . ! 0 0- 05£rm"med per week j2!lO Utility yo-yosQuantity of xylophones ronsumed per week Tntal Utility- xylophones1 2 3 4 5 10 18 25 30 34How many will be consumed each week? (a) 2 yoyos and 1 xylophone (b) 2 yoyos and 4 xylophones (c) 3 xylophones and 0 yo-yos (d) 4 xylophones and 1 yo-yo (e) none of the above.38(H). An increase in the price of feed grain raises the price of milk from \$1.00 to \$1.50 per quart. As a result, milk consumpdon falls from 40 million to 20 million quarts per week. The loss of consumer surplus from the price increase will then be about: (a) \$15 million (b) \$5 million (c) \$10 million (d) \$25 million (e) none ofthe above.S9(H). Narcissus demzurds mirrors according to the following demand schedule:Price of Mirrors \$250 \$200 \$150 \$100Number Purchased Annually 1 2 3 4If there are 500 demanders like Narcissus and if they collecdvely spend \$225,000, then Narcissus achieves a consumer surplus of: (a) \$100 (b) \$150 (c) \$200 (d)\$250 (e)\$50.40. Smileys income is \$12 per week, which he can spend on movies, pretzels, and wine. Movies are S3 per film, preL?:els are \$1 per pound, and wine is 50c per liter. For Smiley, tlie marginal utility of each is;Marginal Utilit\ Movies (M) Pretzels (?) Wine (W)1st 2nd Srd 4th 5th 6th 7th 8th60 15 9 3 0 -3 -8 -1030 28 26 24 20 16 10 425 24 23 20 18 14 12 10If Smiley is maximizing utilit\; his equilibrium will be: (a) M = 2, P = 2,W = 5 (b) M = 3,P = 3,W = 6 (c) M = 1,P=1,W=7 (d) M= 1,P= 1,VV = 3 (e)M = l, p = 5, W = 8.41. Suppose you are given the utility information in question #37 above, but not the prices. Ifyou know that the consumer buys 5 yo-yos and 4 xylophones, you can conclude that the price rado of yo-yos to xylophones must be: (a) 3 to 4 (b) 17 to 35 (c) 35 to 17 (d) 4 to 3 (e) none ofthe above.42. In 1994, the Channel Tunnel (Chunnel) between Dover (in England) and Calais (in France) will be opened. The impact of this event on the shipping lines operadng between these two cides will be to: (a) decrease the demand by shifUng the demand curve right (b) decrease the demand by shifting the demand curve left (c) increase the demand by shifting the demand curve left (d) increase the demand by shifting the demand curve right (e) cause a reduction in the quantity demanded by moving downward along the same stationary demand curve.NOTES[start] [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [ 14 ] [15] [16] [17] [18] [19] [20] [21] [22] [23] [24] [25] [26] [27] [28] [29] [30] [31] [32] [33] [34] [35] [36] [37] [38] [39] [40] [41] [42] [43] [44] [45] [46] [47] [48] [49] [50] [51] [52] [53] [54] [55] [56] [57] [58] [59] [60] [61] [62] [63] [64] [65] [66] [67] [68] [69] [70] [71] [72] [73] [74] [75]