41) Bjorn is a student with a monthly budget of $500, which he allocates between transportation services and "all other goods." Suppose the price of transportation is $5 per unit, and the price of "all other goods" is $20 per unit. The marginal utility he currently receives from his consumption of transportation services is 60. How many units of "all other goods" is he consuming if he is maximizing his utility?
A) 25
B) 60
C) 200
D) 240
E) There is not enough information to determine
42) Laurie spends all of her money buying bread and cheese. The marginal utility she receives from the last loaf of bread is 60 and from the last block of cheese is 30. The price of bread is $3 and the price of cheese is $2. Laurie
A) is buying bread and cheese in utility-maximizing amounts.
B) should buy more bread and less cheese in order to maximize her utility.
C) should buy more cheese and less bread in order to maximize her utility.
D) is spending too much money on bread and cheese.
E) should buy more bread and more cheese in order to maximize her utility.
43) Marginal utility analysis predicts a downward-sloping demand curve for good X because
A) as PX falls, the ratio MUX/PX becomes smaller, causing the consumer to purchase more of good X.
B) as PX rises, the consumer increases purchases of X such that MUX/PX is equal to MU/P for all other products.
C) utility-maximizing consumers equate marginal utility received for each product consumed.
D) all demand curves are downward sloping, regardless of the behaviour of consumers.
E) as PX falls, the consumer increases purchases of X until MUX/PX is equal to MU/P for all other products.
44) If John consumes only two goods, A and B, and he is maximizing his utility subject to his budget constraint,
A) MUA/MUB is at a maximum.
B) MUA/MUB equals the ratio of the total utility of A to the total utility of B.
C) MUA/MUB equals 1.
D) MUA/MUB equals zero.
E) MUA/MUB equals the ratio of the price of A to the price of B.
45) The market demand curve is derived from
A) the vertical summation of individual demand curves.
B) the average quantity demanded of all individuals in the economy.
C) a weighted average of the quantity demanded of all individuals in the economy at each price.
D) the horizontal summation of individual demand curves.
E) market data provided by Statistics Canada.
46) Refer to Figure 6-3. What is the market demand (in cubic metres per month) for cement at a price of $80 per cubic metre?
A) 0
B) 1000
C) 2000
D) 3000
E) 4000
47) Refer to Figure 6-3. What is the market demand (in cubic metres per month) for cement at a price of $60 per cubic metre?
A) 0
B) 1000
C) 2000
D) 3000
E) 4000
48) Refer to Figure 6-3. What is the market demand (in cubic metres per month) for cement at a price of $20 per cubic metre?
A) 0
B) 4000
C) 5000
D) 10 000
E) 14 000
49) Refer to Figure 6-3. On the regional market demand curve for cement (not shown), at what level(s) of quantity demanded is there a "kink" in the demand curve?
A) 0 cubic metres
B) 3000 cubic metres
C) 1500 and 3500 cubic metres
D) 1500 and 7500 cubic metres
E) 12 000 cubic metres
50) Refer to Figure 6-3. On the regional market demand curve for cement (not shown), at which price level(s) is there a "kink" in the demand curve?
A) $10
B) $20 and $30
C) $30 and $70
D) $40 and $70
E) $80
