Question :
21) Refer to Table 6-1. If the prices of toffee : 1384183
21) Refer to Table 6-1. If the prices of toffee bars and bags of cashews are both $1 and this consumer has $7 per week to spend on these two snacks, how many of each will he/she purchase to maximize utility?
A) 2 toffee bars and 5 bags of cashews
B) 3 toffee bars and 4 bags of cashews
C) 4 toffee bars and 3 bags of cashews
D) 5 toffee bars and 2 bags of cashews
E) 6 toffee bars and 1 bag of cashews
22) Refer to Table 6-1. If the price of toffee bars is $1 each, bags of cashews are $2 each, and this consumer has $7 per week to spend on these two snacks, how many of each will he/she purchase to maximize utility?
A) 0 toffee bars and 3 bags of cashews
B) 1 toffee bars and 3 bags of cashews
C) 2 toffee bars and 2 bags of cashews
D) 3 toffee bars and 2 bags of cashews
E) 7 toffee bars and 0 bags of cashews
23) Refer to Table 6-1. If the prices of toffee bars and bags of cashews are both $1 and this consumer has $11 per week to spend on snacks, how many of each will he/she purchase?
A) 3 toffee bars and 8 bags of cashews
B) 4 toffee bars and 7 bags of cashews
C) 5 toffee bars and 5 bags of cashews
D) 5 toffee bars and 6 bags of cashews
E) 6 toffee bars and 5 bags of cashews.
24) Refer to Table 6-1. If the prices of both toffee bars and bags of cashews are $2 and this consumer has $14 per week to spend on these two snacks, what is the maximum total utility achievable?
A) 10
B) 15
C) 33
D) 45
E) 57
25) A consumer maximizes his or her utility when expenditures are allocated such that
A) the total utility from each good is equal.
B) the total number of dollars spent on each good is equal.
C) the utility received from the last unit of each good is equal.
D) the utility received per dollar spent on the last unit of each good is equal.
E) the marginal utility is zero for each good consumed utility.
26) The condition required for a consumer to be maximizing utility, for any pair of products, X and Y, is
A) PX(MUX) = PY(MUY).
B) MUX = MUY.
C) MUX/PX = MUY/PY.
D) MUX/PY = MUY/PX.
E) PX = PY.
27) If a consumer is faced with a choice of products A, B, C, …, and has a given money income, the consumer’s utility will be maximized when
A) MUA/PA = MUB/PB = MUC/PC = …
B) PA = PB = PC = …
C) MUA = MUB = MUC = …
D) TUA = TUB = TUC = …
E) MUA = PA; MUB = PB; MUC = PC; …
28) If all consumers in an economy have maximized their utility, and they face a given set of market prices, then each consumer will have identical
A) total utilities for each good.
B) marginal utilities for each good.
C) marginal utilities per unit of each good.
D) ratios of marginal utility to price for each good.
E) consumption of each good.
29) Refer to Figure 6-2. If the price of X is $2 and the price of Y is $1 and the consumer is buying 4 units of X and 2 units of Y, the consumer’s total utility is
A) 8.
B) 10.
C) 52.
D) 56.
E) 69.
30) Refer to Figure 6-2. Suppose the price of X is $2, the price of Y is $1, and the consumer’s income is $10. The consumer is currently buying 4 units of good X and 2 units of good Y. In order to maximize his utility, he should
A) make no changes—he is already maximizing his total utility.
B) buy the same amount of X but less Y.
C) buy more of X but the same amount Y.
D) buy more of X and less Y.
E) buy less of X and more Y.
