<p> AGEC 105 Capps AQ#2 FALL 2013</p><p>Name: ______UIN # ______</p><p>(1 pt) 1. The mathematical representation of the satisfaction a consumer derives from a bundle of goods is called the ______. </p><p>(2 pts) 2. Given the information below, what is the marginal utility associated with drinking coffee? Show all work.</p><p>Total Utility Quantity of Coffee 48 2 88 10</p><p>3.</p><p>(1 pt) (a) The graph deals with ______curves. </p><p>(1 pt) (b) Among points A, B, C, and D, which combination of wings and hamburgers yields the highest level of satisfaction? ______Wings ______Hamburgers </p><p>(1pt) (c) Among points A, B, C, and D, which combination of wings and hamburgers yields the lowest level of satisfaction? ______Wings ______Hamburgers</p><p>(2 pts) (d) Given points A and B, how many wings is this consumer willing to give up in order to get one more hamburger? Show all work!</p><p>1 AGEC 105 Capps AQ#2 FALL 2013 (1 pt) (e) What is the technical name of the situation described in (d)? ______</p><p>(1 pt) 4. The shift in the budget line in the graph to the right is due to: (Circle the correct answer.) </p><p>(a) an increase in the price of hamburgers. (b) an increase in the price of tacos. (c) a rise in income (d) a fall in income. .</p><p>(1 pt) 5. The clockwise rotation of this diagram may be best explained as: (Circle the correct answer.)</p><p>(a) The price of pork rose. (b) The price of beef rose. (c) Total consumer income allotted to beef and pork fell. (d) The price of beef fell.</p><p>(2 pts) 6. Illustrate a demand curve for Peter Pan peanut butter. Be sure to label your axes.</p><p>2 AGEC 105 Capps AQ#2 FALL 2013</p><p>7. Mr. Valentine wishes to buy steak and pork. Mr. Valentine has a budget of $20. </p><p>Steak (lbs) 4</p><p>A 2 •</p><p>5 10 Pork (lbs)</p><p>(1 pt) (a) At point A, the consumer is said to be in ______.</p><p>(4 pts) (b) Fill in the entries in the table below in conjunction with point A.</p><p>Quantity of Steak Quantity of Pork Price of Steak Price of Pork (lbs) (lbs) ($/lb) ($/lb)</p><p>(1 pt) (c) The marginal rate of substitution at point A is equal to ______. </p><p>(1 pt) 8. Assume that for a given consumer, the marginal utility of cheap food is 100 and the price of cheap food is $40. Also, assume that the marginal utility of environmental quality is 200 and the price of environmental quality is $100. This consumer: (Circle the correct answer.) </p><p>(a) is in equilibrium. (b) should buy more cheap food. (c) should buy more environmental quality. (d) can’t tell; insufficient information given to answer this question.</p><p>(2 pts) 9. TRUE or FALSE. Circle the correct answer. </p><p>T F (a) Indifference curves may intersect. T F (b) The share of the food dollar for food eaten at home is slightly more than 50%. T F (c) In order to construct the budget line, one only needs to know the prices of the goods in question. T F (d) Equity equals liabilities minus assets.</p><p>3 AGEC 105 Capps AQ#2 FALL 2013</p><p>(2 pts) 10. Consider the following diagram, which deals with shrimp from Galveston Bay.</p><p>(1pt) (a) This diagram is technically called a/an ______curve.</p><p>(1pt) (b) From this diagram, we can conclude that shrimp from Galveston Bay is a/an ______good.</p><p>(1pt) 11. The retail value of one dozen eggs is $2.89. Farmers receive $1.04 for this dozen of eggs. What is the farmer’s share of the retail dollar? ______%</p><p>BONUS (1pt): Completely off the wall question: In the United States today, what is the annual number of Coca-Cola soft drink products drunk each year per person? (I will accept as the correct answer plus or minus 5%.)</p><p>4</p>