Fred consumes goods x and y. His utility function is U(x, y) = x² y .

He is endowed with 30 units of x and 12 units of y.

The price of x is $4 and the price of y is $8.

a. Fred will buy fewer than 5 units of x

b. Fred will sell fewer than 5 units of x

c. Fred will buy fewer than 5 units of y

d. Fred will buy 5 or more units of y

e. Fred will buy at least 5 units of x

Nathan earns 15 dollars an hour. He has nonlabour income of $180 per week.

He has 80 hours a week available for either labour or leisure.

His utility function is U(c, r) = c² r, where c is dollars' worth of goods and r is hours of leisure.

How many hours per week will he work.

a. At least 64 hours per week (64 or more)

b. At least 48 hours per week but fewer than 56 hours per week

c. At least 40 hours per week but fewer than 48 hours per week

d. At least 56 hours per week but fewer than 64 hours per week

e. Fewer than 40 hours per week

Rose has an income of $800 in period 1 and will have an income of $1200 in period 2.

Her utility function is U(C₁, C₂) = C₁^0.8 C₂^0.2, where c₁ is consumption in period 1 and c₂ is consumption in period 2.

The interest rate is 0.5 (50%).

If she unexpectedly won a lottery at the start of period 1, which pays its $3000 prize at tge start of period 2, (so that her income in period 2 would be $4,200 and her income in period 1 remains $800), then her consumption in period 1 would

a) increase to double her "no-prize" consumption in period 1

b) increase to an amount more than double her "no-prize" consumptio in period 1

c) increase by less than $1200

d) not change as the pize will not be received until period 2

e) increase by at least $1200 but by less than double her "no-prize" consumption in period 1

Phil and Don are the two agents in an exchange economy. Each has preferences over consumption of "X" and "Y", and each is endowed with some of each good.

Phil`s utility function is U_P (X_p , Y_P) = (X_p) (Y_p³)

Don`s utility function is U_d (X_d , Y_d) = (X_d³) (Y_d)

Phil`s endowment is 60 units of "X" and 80 units of "Y" while Don`s endowment is 120 units of "X" and 40 units of "Y"

At this equilibrium relative price, what will Phil offer Don, and what does Phil want from Don in exchange?

a) Phil offers 12 or fewer units of "X" to Don in exchange for "Y"

b) Phil offers more than 12 units of "X" to Don in exchange for "Y"

c) Phil offers 12 or fewer units of "Y" to Don in exchange for "X"

d) Phil offers more than 12 units of "Y" to Don in exchange for "X"

Consider a single-input production technology, Q(L) = L^(1/2) = sqrt(L), where Q is output and L is the amount of labour input used.

The competitive market price of output is $120, and the wage rate is $15 per labour unit (person-hour).

At the profit-maximizing quantity of labour employed,

a) The firm`s profit equals the firm`s total cost of labour

b) The consumer/labour - supplier is maximizing utility

c) The real wage is equal to the price of output

d) The slope of the production function = 8

e) The price of output is equal to the marginal product of labour.