4 Part Question on Caesar * * PART 1 * * Caesar has preferences that are described by the utility function u = 3x 1 + 5x 2. Caesar strictly prefers the bundle (x 1, x 2) = (0, 6.6) to the bundle A. (3, 3) B. (5, 3.6) C. (0, 8.4) D. (11, 1.8) E. (8, 3.60) * * PART 2 * * What is the functional form of Caesar’s preferences, or indifference curves? A. Linear (perfect substitutes) B. Leontief (perfect complements) C. Satiation D. Concave, but not strictly concave E. Cobb-Douglas * * PART 3 * * Caesar’s preferences are A. strictly convex. B. definitely not well-behaved. C. definitely well-behaved. D. strictly concave. E. neutral. * * PART 4 * * Caesar has been consuming the bundle (x 1, x 2) = (10, 2.4). At this point, what is the marginal rate of substitution? A. – 0.25 B. –0.6 C. – 1.67 D. – 3.0 E. – 5.0.
4 Part Question on Caesar
* * PART 1 * *
Caesar has preferences that are described by the utility function u = 3x 1 + 5x 2.
Caesar strictly prefers the bundle (x 1, x 2) = (0, 6.6) to the bundle
A. (3, 3) B. (5, 3.6) C. (0, 8.4) D. (11, 1.8) E. (8, 3.60)
* * PART 2 * *
What is the functional form of Caesar’s preferences, or indifference
A. Linear (perfect substitutes)
B. Leontief (perfect complements)
C. Satiation
D. Concave, but not strictly concave
E. Cobb-Douglas
* * PART 3 * *
Caesar’s preferences are
A. strictly convex. B. definitely not well-behaved. C. definitely well-behaved. D. strictly concave. E. neutral.
* * PART 4 * *
Caesar has been consuming the bundle (x 1, x 2) = (10, 2.4). At this point, what is the marginal rate of substitution?
A. – 0.25 B. –0.6 C. – 1.67 D. – 3.0 E. – 5.0.
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