¡Descarga Budget Constraints Exercises y más Apuntes en PDF de Microeconomía solo en Docsity!
Chapter 2
True-False Budget Constraint
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 90 Discriminati on Index: 10 Correct Answer: False
2.1 If there are two go o ds with p ositive prices and the price of one go o d is reduced, while income and other prices remain constant, then the size of the budget set is reduced.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 76 Discriminati on Index: 24 Correct Answer: False
2.2 If go o d 1 is measured on the horizontal axis and go o d 2 is measured on the vertical axis, and if the price of go o d 1 is p 1 and the price of go o d 2 is p 2 ; then the slop e of the budget line is p 2 =p 1.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 91 Discriminati on Index: 13 Correct Answer: False
2.3 If all prices are doubled and money income is left the same, the budget set do es not change b ecause relative prices don't change.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 93 Discriminati on Index: 21 Correct Answer: True
2.4 If there are two go o ds, and if one go o d has a negative price and the other has a p ositive price, then the slop e of the budget line will b e p ositive.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 94 Discriminati on Index: 12 Correct Answer: False
2.5 If all prices double and income triples, then the budget line will b ecome steep er.
CHAPTER 2 Budget Constraint 2
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 95 Discriminati on Index: 13 Correct Answer: False
2.6 If Go o d 1 is on the horizontal axis and Go o d 2 is on the vertical axis, then an increase in the price of Go o d 1 will not change the horizontal intercept of the budget line.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 98 Discriminati on Index: 1 Correct Answer: False
2.7 If there are two go o ds and the prices of b oth go o ds rise, then the budget line must b ecome steep er.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 97 Discriminati on Index: 0 Correct Answer: True
2.8 There are two go o ds. You know how much of go o d 1 a consumer can a ord if she sp ends all of her income on go o d 1. If you know the ratio of the prices of the two go o ds, then you could draw the consumer's budget line without any more information.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 91 Discriminati on Index: 0 Correct Answer: True
2.9 A consumer prefers more to less of every go o d. Her income rises, and the price of one of the go o ds falls while other prices stay constant. These changes must have made her b etter o.
Topic: Budget Constraint Diculty: 2 % Correct Resp onses: 0 Discriminati on Index: 0 Correct Answer: True
2.10 There are 3 go o ds. The price of go o d 1 is 1 ; the price of go o d 2 is +1; and the price of go o d 3 is +2. It is physically p ossible for a consumer to consume any commo dity bundle with non-negative amounts of each go o d. A consumer who has income of 10 could a ord to consume some commo dity bundles that include 5 units of go o d 1 and 6 units of go o d 2.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 80 Discriminati on Index: 49 Correct Answer: False
2.11 A decrease in income pivots the budget line around the bundle initially consumed.
CHAPTER 2 Budget Constraint 4
Topic: Budget Constraint Diculty: 2 % Correct Resp onses: 0 Discriminati on Index: 0 Correct Answer: A
2.3 Matt lives on p op corn and seafo o d salads. The price of p op corn is 1 dollar p er bag and the price of seafo o d salads is 2 dollars each. Matt allows himself to sp end no more than 13 dollars a day on fo o d. He also restricts his consumption to 5,500 calories p er day. There are 1,000 calories in a bag of p op corn and 500 calories in a seafo o d salad. If he sp ends his entire money budget each day and consumes no more calories than his calorie limit:
(a) he can consume up to 3 bags of p op corn p er day, but no more.
(b) he can consume up to 1 bags of p op corn p er day, butno more.
(c) he can consume up to 5 seafo o d salads p er day, but no more.
(d) he can consume up to 4 bags of p op corn p er day, but no more.
(e) None of the ab ove.
Topic: Budget Constraint Diculty: 2 % Correct Resp onses: 0 Discriminati on Index: 0 Correct Answer: A
2.4 Quincy lives on ding dongs and seafo o d salads. The price of ding dongs is 1 dollar p er bag and the price of seafo o d salads is 4 dollars each. Quincy allows himself to sp end no more than 23 dollars a day on fo o d. He also restricts his consumption to 3,300 calories p er day. There are 600 calories in a bag of ding dongs and 300 calories in a seafo o d salad. If he sp ends his entire money budget each day and consumes no more calories than his calorie limit:
(a) he can consume up to 3 bags of ding dongs p er day, but no more.
(b) he can consume up to 1 bags of ding dongs p er day, butno more.
(c) he can consume up to 5 seafo o d salads p er day, but no more.
(d) he can consume up to 4 bags of ding dongs p er day, but no more.
(e) None of the ab ove.
MULTIPLE CHOICE 5
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 88 Discriminati on Index: 20 Correct Answer: A
2.5 Teresa sp ends her entire budget and consumes 6 units of x and 20 units of y. The price of x is twice the price of y. Her income doubles and the price of y doubles, but the price of x stays the same. If she continues to buy 20 units of y ; what is the largest numb er of units of x that she can a ord?
(a) 12
(b) 6
(c) 14
(d) 16
(e) There is not enough information to say.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 88 Discriminati on Index: 20 Correct Answer: A
2.6 Linda sp ends her entire budget and consumes 15 units of x and 19 units of y. The price of x is twice the price of y. Her income doubles and the price of y doubles, but the price of x stays the same. If she continues to buy 19 units of y ; what is the largest numb er of units of x that she can a ord?
(a) 30
(b) 15
(c) 32
(d) 34
(e) There is not enough information to say.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 50 Discriminati on Index: 50 Correct Answer: C
2.7 In year 1, the price of go o d x was 1, the price of go o d y was 1, and income was 30. In year 2, the price of x was 6, the price of go o d y was 5, and income was 30. On a graph with x on the horizontal axis and y on the vertical, the new budget line is:
(a) atter than the old one and lies b elow it.
(b) atter than the old one and lies ab ove it.
(c) steep er than the old one and lies b elow it.
(d) steep er than the old one and lies ab ove it.
(e) none of the ab ove.
MULTIPLE CHOICE 7
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 35 Discriminati on Index: 8 Correct Answer: D
If she sp ends her entire budget, Heidi can a ord 39 p eaches and 12 p ears. She can also just a ord 24 p eaches and 17 p ears. The price of p eaches is 9 cents. What is the price of p ears in cents?
(a) 37
(b) 3
(c) 12
(d) 27
(e) None of the ab ove.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 100 Discriminati on Index: 0 Correct Answer: B
2.11 Heidi thrives on two go o ds: bananas and apples. The cost of bananas is 30 marks each and the cost of apples is 15 marks each. If her income is 210 marks, how many bananas can she buy if she sp ends all of her income on bananas?
(a) 5
(b) 7
(c) 14
(d) 10
(e) None of the ab ove
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 100 Discriminati on Index: 0 Correct Answer: B
2.12 Teresa thrives on two go o ds: mangos and melons. The cost of mangos is 30 yen each and the cost of melons is 15 yen each. If her income is 180 yen, how many mangos can she buy if she sp ends all of her income on mangos?
(a) 4
(b) 6
(c) 12
(d) 9
(e) None of the ab ove
CHAPTER 2 Budget Constraint 8
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 76 Discriminati on Index: 34 Correct Answer: B
2.13 Yoram sp ends his entire income on 11 sacks of acorns and 5 crates of butternuts. The price of acorns is 4 dollars p er sack and his income is 94 dollars. He can just a ord a commo dity bundle with A sacks of acorns and B crates of butternuts which satis es the budget equation:
(a) 4 A + 12 B = 94.
(b) 8 A + 20 B = 188.
(c) 6 A + 10 B = 94.
(d) 4 A + 14 B = 96.
(e) None of the ab ove.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 76 Discriminati on Index: 34 Correct Answer: B
2.14 Eduardo sp ends his entire income on 12 sacks of acorns and 2 crates of butternuts. The price of acorns is 2 dollars p er sack and his income is 34 dollars. He can just a ord a commo dity bundle with A sacks of acorns and B crates of butternuts which satis es the budget equation:
(a) 2 A + 7 B = 34.
(b) 4 A + 10 B = 68.
(c) 4 A + 5 B = 34.
(d) 2 A + 9 B = 36.
(e) None of the ab ove.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 99 Discriminati on Index: 5 Correct Answer: C
2.15 Harry thrives on two go o ds, pap erback novels and bananas. The cost of pap erback novels is 4 dollars each and the cost of bananas is 3 dollars p er bunch.If Harry sp ent all of his income on bananas, he could a ord 12 bunches of bananas p er week. How many pap erback novels could he buy if he sp ent all of his income on pap erback novels?
(a) 36
(b) 48
(c) 9
(d) 16
(e) None of the ab ove.
CHAPTER 2 Budget Constraint 10
Topic: Budget Constraint Diculty: 2 % Correct Resp onses: 0 Discriminati on Index: 0 Correct Answer: B
2.19 Billy Bob wants to gain some weight so that he can play fo otball. Billy eats only milkshakes and spinach. Milkshakes cost him $1 each and spinach costs $2 p er serving. A milkshake has 850 calories and a serving of spinach has 200 calories. Billy Bob never sp ends more than $20 a day on fo o d and he always consumes at least 8000 calories p er day. Which of the following is necessarily true?
(a) Billy Bob consumes at least 9 milkshakes a day.
(b) Billy Bob never consumes more than 6 servings of spinach a day.
(c) Billy Bob never consumes p ositive amounts of b oth go o ds.
(d) Billy Bob consumes only milkshakes.
(e) None of the ab ove.
Topic: Budget Constraint Diculty: 2 % Correct Resp onses: 81 Discriminati on Index: 21 Correct Answer: D
2.20 Lars consumes only p otato es and herring. When the price of p otato es was 9 crowns p er sack and the price of herring was 5 crowns p er cro ck, he sp ent his entire income to buy 5 sacks of p otato es and 10 cro cks of herring p er month. Now the government subsidizes p otato es. Market prices haven't changed, but consumers get a subsidy of 5 crowns for every sack of p otato es con- sumed. To pay for this subsidy, the government intro duced an income tax. Lars pays an income tax of 20 crowns p er month. If s is the numb er of sacks of p otato es and c is the numb er of cro cks of herring, what is Lars's NEW budget equation?
(a) 9 s + 5 c = 100.
(b) 14 s + 5 c = 95.
(c) 4 s + 5 c = 95.
(d) 4 s + 5 c = 75.
(e) 14 s + 5 c = 120.
MULTIPLE CHOICE 11
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 95 Discriminati on Index: 17 Correct Answer: C
2.21 If you sp ent your entire income, you could a ord either 4 units of x and 8 units of y or 8 units of x and 4 units of y. If you sp ent your entire income on x; how many units of x could you buy?
(a) 20
(b) 17
(c) 12
(d) There is not enough information to determine the amount of x.
(e) None of the ab ove.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 95 Discriminati on Index: 17 Correct Answer: C
2.22 If you sp ent your entire income, you could a ord either 5 units of x and 15 units of y or 15 units of x and 5 units of y. If you sp ent your entire income on x; how many units of x could you buy?
(a) 35
(b) 24
(c) 20
(d) There is not enough information to determine the amount of x.
(e) None of the ab ove.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 95 Discriminati on Index: 10 Correct Answer: C
2.23 Bella's budget line for x and y dep ends on all of the following except:
(a) the amount of money she has to sp end on x and y.
(b) the price of x.
(c) her preferences b etween x and y.
(d) the price of y.
(e) none of the ab ove.
MULTIPLE CHOICE 13
Topic: Budget Constraint Diculty: 2 % Correct Resp onses: 70 Discriminati on Index: 32 Correct Answer: A
2.26 Young Alasdair loves lollip ops and hates oatmeal. To induce him to eat enough oatmeal and to restrain him from eating to o many lollip ops, his mum pays him 10 p ence for every quart of oatmeal that he eats. The only way that he can get lollip ops is to buy them at the sweet shop, where lollip ops cost 5 p ence each. Besides what he earns from eating oatmeal, Alasdair gets an allowance of 10 p ence p er week. If Alasdair consumes only oatmeal and lollip ops and if his con- sumption bundles are graphed with quarts of oatmeal on the horizontal axis and lollip ops on the vertical axis, then Alasdair's budget line:
(a) has a slop e of 2.
(b) has a slop e of less than 2.
(c) has a slop e of 2.
(d) has a slop e of 1 =2.
(e) has a slop e greater than 2.
Topic: Budget Constraint Diculty: 2 % Correct Resp onses: 41 Discriminati on Index: 30 Correct Answer: C
2.27 The Chuzzlewits have an income of $m p er week. Let x b e fo o d and let y b e all other go o ds. Let px b e the price of fo o d and py b e the price of other go o ds. They can use fo o d stamps to buy fo o d at a price of px (1 s) for up to x* units of fo o d p er week. If they buy more fo o d than x*, they have to pay the full price, px for additional units. Their weekly income is greater than px (1 s)x. The maximum amount of fo o d that they can buy p er week is:
(a) x +(m=px )
(b) (m + x)=px
(c) (m=px ) + sx
(d) m=(1 s)px
(e) (m + px )=(1 s)px
CHAPTER 2 Budget Constraint 14
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 100 Discriminati on Index: 0 Correct Answer: C
2.28 Edmund must pay $6 each for punk ro ck video casettes, V. If Edmund is paid $24 p er sack for accepting garbage, G; and if his relatives send him an allowance of $192, then his budget line is describ ed by the equation:
(a) 6 V = 24 G.
(b) 6 V + 24 G = 192.
(c) 6 V 24 G = 192.
(d) 6 V = 192 G.
(e) None of the ab ove.
Topic: Budget Constraint Diculty: 1 % Correct Resp onses: 100 Discriminati on Index: 0 Correct Answer: C
2.29 Edmund must pay $6 each for punk ro ck video casettes, V. If Edmund is paid $24 p er sack for accepting garbage, G; and if his relatives send him an allowance of $168, then his budget line is describ ed by the equation:
(a) 6 V = 24 G.
(b) 6 V + 24 G = 168.
(c) 6 V 24 G = 168.
(d) 6 V = 168 G.
(e) None of the ab ove.
Topic: Budget Constraint Diculty: 0 % Correct Resp onses: 0 Discriminati on Index: 0 Correct Answer: C
2.30 If you have an income of $40 to sp end, if commo dity 1 costs $4 p er unit, and commo dity 2 costs $20 p er unit, then the equation for your budget line can b e written as:
(a) x 1 = 4 + x 2 = 20 = 40.
(b) (x 1 + x 2 )=(24) = 40.
(c) x 1 + 5 x 2 = 10.
(d) 5 x 1 + 21 x 2 = 41.
(e) 24(x 1 + x 2 ) = 40.
CHAPTER 2 Budget Constraint 16
Topic: Budget Constraint Diculty: 0 % Correct Resp onses: 99 Discriminati on Index: 4 Correct Answer: B
2.34 Murphy used to consume 100 units of X and 50 units of Y when the price of X was 2 and the price of Y was 4. If the price of X rose to 5 and the price of Y rose to 7, how much would Murphy's income have to rise so that he could still a ord his original bundle?
(a) 600
(b) 450
(c) 300
(d) 900
(e) None of the ab ove.
Topic: Budget Constraint Diculty: 0 % Correct Resp onses: 99 Discriminati on Index: 4 Correct Answer: B
2.35 Murphy used to consume 100 units of X and 50 units of Y when the price of X was 2 and the price of Y was 4. If the price of X rose to 6 and the price of Y rose to 8, how much would Murphy's income have to rise so that he could still a ord his original bundle?
(a) 800
(b) 600
(c) 400
(d) 1,
(e) None of the ab ove.
Topic: Budget Constraint Diculty: 0 % Correct Resp onses: 0 Discriminati on Index: 0 Correct Answer: C
2.36 This weekend, Martha has time to read 40 pages of economics and 30 pages of so ciology. Alternatively, she could read 20 pages of economics and 70 pages of so ciology. Which of these equations describ es all combinations of pages of economics, E ; and so ciology, S; that she could read over the weekend?
(a) E + S = 70
(b) E = 2 + S = 50
(c) 2 E + S = 110
(d) E + S = 90
(e) All of the ab ove.
MULTIPLE CHOICE 17
Topic: Budget Constraint Diculty: 0 % Correct Resp onses: 0 Discriminati on Index: 0 Correct Answer: C
2.37 This weekend, Martha has time to read 40 pages of economics and 30 pages of so ciology. Alternatively, she could read 20 pages of economics and 110 pages of so ciology. Which of these equations describ es all combinations of pages of economics, E ; and so ciology, S; that she could read over the weekend?
(a) E + S = 70
(b) E = 2 + S = 50
(c) 4 E + S = 190
(d) E + S = 130
(e) All of the ab ove.
Topic: Budget Constraint Diculty: 2 % Correct Resp onses: 0 Discriminati on Index: 0 Correct Answer: A
2.38 Ads in a slick business magazine are read by 300 lawyers and 1000 M.B.A's. Ads in a consumer publication are read by 250 lawyers and 300 M :B :A:^0 s. If Harry had $ 3,600 to sp end on advertising, if the price of ads in the business magazine were $600 and the price of ads in the consumer magazine were $300, then the combinations of recent M :B :A:^0 s and lawyers with hot tubs whom he could reach with his advertising budget would b e represented by the integer values along a line segment that runs b etween the two p oints:
(a) (3; 000; 3 ; 600 ) and (1; 800; 6 ; 000).
(b) (3; 600; 4 ; 200) and (1; 800; 7 ; 200).
(c) (0; 3 ; 600) and (1; 800; 0).
(d) (3; 600; 0) and (0; 7 ; 200).
(e) (2; 400; 0) and (0; 6 ; 000).
MULTIPLE CHOICE 19
Topic: Budget Constraint Diculty: 2 % Correct Resp onses: 60 Discriminati on Index: 47 Correct Answer: B
2.41 In the economy of Mungo, discussed in your workb o ok, there is a third p erson called Ike. Ike has a red income of 40 and a blue income of 10. (Recall that blue prices are 1 b cu [blue currency unit] p er unit of ambrosia and 1 b cu p er unit of bubblegum. Red prices are 2 rcus [red currency units] p er unit of ambrosia and 6 rcus p er unit of bubblegum. You have to pay twice for what you buy, once in red currency, once in blue currency.) If Ike sp ends all of his blue income, but not all of his red income, then it must b e that:
(a) he consumes at least 5 units of bubblegum.
(b) he consumes at least 5 units of ambrosia.
(c) he consumes exactly twice as much bubblegum as ambrosia.
(d) he consumes at least 14 units of bubblegum.
(e) he consumes equal amounts of ambrosia and bubblegum.
Topic: Budget Constraint Diculty: 2 % Correct Resp onses: 0 Discriminati on Index: 0 Correct Answer: A
2.42 Deadly Serious, I I, studying for his M.B.A., consumes only two go o ds, Wheaties and p ens. Each p en costs $1. Each b ox of Wheaties costs $2 but has a "free" p en inside. Pens can b e dis- carded at no cost. If we draw Serious's budget set with p ens plotted on the horizontal axis, then his budget set will b e b ounded by two line segments with slop es:
(a) zero and 1.
(b) zero and 2.
(c) zero and :5.
(d) zero and in nity.
(e) zero and +2.
CHAPTER 2 Budget Constraint 20
Topic: Budget Constraint Diculty: 0 % Correct Resp onses: 78 Discriminati on Index: 49 Correct Answer: D
2.43 Supp ose there are two go o ds, the prices of b oth go o ds are p ositive and a consumer's income is also p ositive. If the consumer's income doubles and the price of b oth go o ds triple,
(a) the consumer's budget line gets steep er and shifts inward.
(b) the slop e of the consumer's budget line do es not change but the budget line shifts outward away from the origin.
(c) the consumer's budget line gets steep er and shifts outward.
(d) the slop e of the consumer's budget line do es not change but the budget line shifts inward toward the origin.
(e) the consumer's budget line gets atter and shifts inward.
Topic: Budget Constraint Diculty: 0 % Correct Resp onses: 0 Discriminati on Index: 0 Correct Answer: B
2.44 Thomas consumes co ee (C ) and doughnuts (D). His budget line was describ ed by the equation D = 20 2 C. At a later time, his budget line could b e describ ed by the equation D = 10 C. The change b etween the earlier budget line and the later could b e explained by the following.
(a) The price of co ee and Thomas's income b oth increased.
(b) The price of co ee increased and Thomas's income decreased.
(c) The price of co ee decreased and Thomas's income increased.
(d) The price of co ee and Thomas's income b oth decreased.
(e) Thomas's utility for doughnuts decreased.
