Chapter 4/Consumer Choice
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| Figure 4.1
45) Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in Figure 4.1. Which bundle will Max choose? A) a
B) b C) c
D) d Answer: B Diff: 0
Topic: Consumer's Constrained Choice 46) Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in Figure 4.1. What is the price of chicken? A) $0.80/lb B) $1.25/lb C) $4/lb D) $5/lb
Diff: 1
Topic: Consumer's Constrained Choice 47) Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in Figure 4.1. If the price of burger increases, A) Max will buy less burger and more chicken. B) Max will buy less burger and the same quantity of chicken. C) Max will buy less of both meats. D) More information is needed to answer the question.
Diff: 1
Topic: Consumer's Constrained Choice 48) Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in Figure 4.1. What happens if Max's mother gives him 10 pounds of burger? A) Max would have preferred receiving the dollar value of the burger. B) Max is indifferent between this gift and the dollar value of the burger. C) Max prefers this gift to the dollar value of the burger. D) None of the above.
Diff: 2
Topic: Consumer's Constrained Choice 49) Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in Figure 4.1. What happens if Max's mother gives him 30 pounds of burger? A) Max would have preferred receiving the dollar value of the burger. B) Max is indifferent between this gift and the dollar value of the burger. C) Max prefers this gift to the dollar value of the burger. D) None of the above.
Diff: 2
Topic: Consumer's Constrained Choice 50) Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in Figure 4.1. What happens if Max receives a $100 cash grant to buy either meat or chicken? A) Max will double his consumption of both meats. B) Max will spend it all on burger. Because of its lower price, he can buy more of it. C) Max will take advantage of the gift by buying all chicken because it is the more expensive meat. D) There is not enough information to answer the question.
Diff: 2
Topic: Consumer's Constrained Choice 51) Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in Figure 4.1. Which of the following best describes Max's preferences? A) d > b > e B) d = b = e C) a = b > c D) a = b > e
Diff: 1
Topic: Consumer's Constrained Choice 52) Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in Figure 4.1. Which of the following bundles are in Max's opportunity set? A) a, b, c B) b, d, e C) a, b, d D) None of the above.
Diff: 1
Topic: Consumer's Constrained Choice 53) Max has allocated $100 toward meats for his barbecue. His budget line and indifference map are shown in Figure 4.1. If the price of burger increases, which of the following bundles are in Max's opportunity set? b, d, e d, e a, b, c, d, e None of the labeled points are in Max's opportunity set. Answer: D Diff: 0 Topic: Consumer's Constrained Choice TRUE/FALSE/EXPLAIN Download 145.5 Kb. Share with your friends:
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