Question : 51) Sue consumes oysters and clams. Pounds of oysters measured : 1226130

51) Sue consumes oysters and clams. Pounds of oysters are measured on the y-axis and pounds of clams on the x-axis. If the slope of Sue’s budget line is 5 pounds of oysters per pound of clams, Sue must

A) give up 5 pounds of clams to obtain 1 pound of oysters.

B) give up 5 pounds of oysters to obtain 1 pound of clams.

C) pay $5 for a pound of clams only.

D) pay $5 for a pound of oysters only.

E) pay $5 for a pound of clams and pay $5 for a pound of oysters.

52) When the price of one good changes while another good’s price does not change, then there has been a change in the

A) relative price.

B) marginal utility price.

C) absolute price.

D) marginal price.

E) utility price.

53) A budget line shows the

A) limits to production possibilities.

B) limits to production opportunities.

C) slope of the demand curve.

D) limits to consumption possibilities.

E) way the demand curve shifts if the consumer’s budget changes.

54) A budget line

A) represents combinations of goods a consumer desires.

B) marks the boundary between what a consumer can afford and cannot afford.

C) has a positive slope.

D) is the same as the production possibilities frontier.

E) is the same as a demand curve.

55) Linda has $10 a month to spend on ice cream cones and chocolate bars. If the price of an ice cream cone is $2 a cone and the price of a chocolate bar is $1 a bar, which of the following is a point on Linda’s budget line?

A) 4 cones and 0 chocolate bars

B) 1 cone and 8 chocolate bars

C) 3 cones and 1 chocolate bar

D) 5 cones and 10 chocolate bars

E) 0 cones and 0 chocolate bars

56) If a budget line rotates inward and becomes steeper, then the

A) consumer’s budget decreased.

B) consumer’s budget increased.

C) price of one of the goods decreased.

D) price of one of the goods increased.

E) price of both of the goods must have decreased.

57) If the budget line rotates inward and becomes steeper, there is a

A) higher opportunity cost of the good measured on the x-axis.

B) lower opportunity cost of the good measured on the x-axis.

C) larger budget.

D) higher price for the good measured on the y-axis.

E) lower price for the good measured on the x-axis.

58) A relative price is the

A) price of a substitute.

B) price of a related good.

C) price of one good divided by the price of another.

D) absolute price of a good.

E) price of one good multiplied by the price of another.

59) If a consumer’s budget increases, the budget line

A) rotates outward and its slope changes.

B) rotates inward and its slope changes.

C) shifts outward and its slope does not change.

D) shifts inward and its slope does not change.

E) does not change.

60) Reb buys fishing lures and steaks. If his budget increases, the maximum number of fishing lures he can purchase ________ and the maximum number of steaks he can purchase ________.

A) increases; increases

B) increases; decreases

C) decreases; increases

D) decreases; decreases

E) does not change; does not change