CHAPTER 2 Budget Constraint Topic: Budget Constraint Difficulty y Correct Responses: o Correct Answer: A 2.39 Ads in a slick business magazine are read by 300 lawyers and 1000 M. B.As. Ads in a consumer publication are read by 250 lawyers and 300 M. B A ' s. If Harry had S 2, 600 to spend n advertising, if the price of ads in the business magazine were $100 and the price of ads in the consumer magazine were $200, then the combinations of recent M. B._A. 's and lawyers with hot tub whom he could reach wit h his advertising budget would be represented by the integer values along a line segment t hat runs bet ween the two points (a)(3,250;3,900)and(1,950;6,500 (b)(3,900;4,550)and(1,950;7,800 (c)(0;3;,900)and(1,950;0) (d)(3,900;0)and(0;7,800 e)(2,600;0)and(0;6,500 Tor Budget Cons Difficulty: 2 Discrimination Index: 47 Correct Answer: B 2.40 In the economy of Mungo, discussed in your workbook, there is a third person called Ike. Ike has a red income of 56 and a bl ue income of 10.(Recall that bl ue prices are 1 bcu [bl ue currency unit] per unit of ambrosia and 1 bcu per unit of bubblegum. Red prices are 2 rcus [red currency nits] per unit of ambrosia and 6 rcus per unit of bubblegum. You have to pay twice for w hat you buy, once in red currency, once in bl ue currency. )If Ike spends all of his blue income, but not all f his red income, then it must be that es at least 9 units of bubblegu (b)he consumes at least l units of ambrosia (c he consumes exactly twice as much bubblegum as ambrosia d) he consumes at least 17 units of bubblegum (e) he consumes equal amounts of ambrosia and bubblegumCHAPTER 2 Budget Constraint 18 Topic: Budget Constraint Diculty: 2 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: A 2.39 Ads in a slick business magazine are read by 300 lawyers and 1000 M.B.A's. Ads in a consumer publication are read by 250 lawyers and 300 M :B :A:0s. If Harry had $ 2,600 to spend on advertising, if the price of ads in the business magazine were $400 and the price of ads in the consumer magazine were $200, then the combinations of recent M :B :A:0s and lawyers with hot tubs whom he could reach with his advertising budget would be represented by the integer values along a line segment that runs between the two points: (a) (3; 250; 3; 900) and (1; 950; 6; 500). (b) (3; 900; 4; 550) and (1; 950; 7; 800). (c) (0; 3; 900) and (1; 950; 0). (d) (3; 900; 0) and (0; 7; 800). (e) (2; 600; 0) and (0; 6; 500). Topic: Budget Constraint Diculty: 2 % Correct Responses: 60 Discrimination Index: 47 Correct Answer: B 2.40 In the economy of Mungo, discussed in your workbook, there is a third person called Ike. Ike has a red income of 56 and a blue income of 10. (Recall that blue prices are 1 bcu [blue currency unit] per unit of ambrosia and 1 bcu per unit of bubblegum. Red prices are 2 rcus [red currency units] per unit of ambrosia and 6 rcus per unit of bubblegum. You have to pay twice for what you buy, once in red currency, once in blue currency.) If Ike spends all of his blue income, but not all of his red income, then it must be that: (a) he consumes at least 9 units of bubblegum. (b) he consumes at least 1 units of ambrosia. (c) he consumes exactly twice as much bubblegum as ambrosia. (d) he consumes at least 17 units of bubblegum. (e) he consumes equal amounts of ambrosia and bubblegum