Managerial Economics Quiz

1. If the consumer's budget constraint is given by 10F + 5S = 100 where F is food and S is shelter, how much food can he buy if he purchases 2 units of shelter? Plug in number

Student Response Value
A. 10
B. 5
C. 20 D. 9 100%

Score: 1/1

2. If the consumer's budget constraint is given by 10F + 5S = 100 where F is food and S is shelter, what is the opportunity cost of food in terms of shelter? F/S

Student Response Value
A. 5
B. 2
C. 15
D. 10 0%

Score: 1/1

3. If the consumer's budget constraint is given by 4P + 2B = 50 where P is Pizza and B is Burgers, the following bundles of Pizza and Burger would be on the budget constraint:
Plug in numbers

Student Response Value A. P = 2; B = 21 100%
B.
P = 5; B = 10
C. P = 2; B = 24
D. P = 10; B = 20

Score: 1/1

4. An increase in the price of one good will cause

Student Response Value
A. An inward rotation of the budget curve
B. An outward rotation of the budget curve
C. A parallel shift in the budget curve D. An inside shift of the budget curve 0%

Score: 1/1

5. An increase in income with no changes in the price of either good will cause

Student Response Value
A. An inward shift of the budget curve B. An outward shift of the budget curve 100%
C. No change in the budget curve
D. An inward rotation of the budget curve

Score: 1/1

6. Suppose you are choosing between milk and cookies. If the opportunity cost of cookies in terms of milk increases, then the budget curve will:

Student Response Value
A. shift inward B. rotate inward. 100%
C. shift outward
D. rotate outward

Score: 1/1

7. I prefer 10 apples and 6 oranges to 9 apples and 3 oranges. This is an example of

Student Response Value
A.