To simplify our consumption models, suppose U.S. consumers only purchase food and all other goods where food is plotted along the horizontal axis of the indifference map. Also, suppose that all states initially impose state sales taxes on all goods (including food), but then the states exempt food from the state sales tax. How does this tax policy change alter the consumer’s budget line?

For utility function U(x, y)=5x + 2y,, the MRS(x, y)=MUx/MUy

Your budget is such that if you spend your entire income, you can afford either 4 units of good x and 6 units of good y or 12 units of x and 2 units of y.  If you spent all of your income on x, how much x could you buy?

Due Date/Time: 11:59 PM Wednesday September 11, 2024.   Maximum Time Limit = 75 Minutes (in one sitting)  Must be taken in one 75-minute sitting/session.  Must Use Examity.  Examity is required to take this exam.  Remember to comply with Examity’s identification requirements, and show your photo ID, please.  Acceptable forms of ID include:  CCAC Student ID, Driver’s License, or other Government-Issued ID.   IF YOU NEED TO USE SCRAP PAPER, YOU MUST SHOW THE BLANK PAPER TO THE CAMERA FIRST, THEN WRITE WHAT YOU NEED TO, THEN SHOW THE WRITTEN-ON PAPER TO THE CAMERA.  Be sure that you type all your answers and any work into the exam, too, please.   IF YOU NEED TO USE A CALCULATOR, IT MUST BE A REGULAR CALCULATOR (HAND-HELD OR ON SCREEN).  PHONES AREN’T PERMITTED.  YOU MUST SHOW THE CALCULATOR TO THE CAMERA IF IT IS HAND-HELD.    REMINDERS: Exams, tests, and quizzes are closed books, closed notes, closed slides, closed assignments, and taken individually.  No additional devices allowed other than the one (1) being used for the exam/test/quiz. Only the test/exam/quiz screen should be open.  A simple, basic calculator can be used (not phones).  No other windows, websites, programs are permitted.   

Jane is trying to decide which courses to take next semester. She has narrowed down her choice to two courses, Econ 1 and Econ 2. Now she is having trouble and cannot decide which of the two courses to take. It’s not that she is indifferent between the two courses, she just cannot decide. An economist would say that this is an example of preferences that:

Use the following two statements to answer this question: I. The supply of newly mined copper is more elastic in the long run than in the short run. II. The supply of scrap copper is more elastic in the short run than in the long run.

Consider the following three market baskets:             Table 1             Food    Clothing A         6          3 B         8          5 C         5          8   Refer to Table 1.  Which of the following cannot be true?      

Which of the following would shift the demand curve for new textbooks to the right?

An individual consumes only two goods, X and Y. Which of the following expressions represents the utility maximizing market basket?

Use trache/o to build a word that means forming an opening in the trachea: ____________________.