1			What does the diamond–water paradox refer to?
			A)	The fact that water is far more plentiful than diamonds, even though people need more diamonds.
			B)	The fact that water is far more valuable than diamonds, and yet its price tends to be far lower.
			C)	The fact that although people do not necessarily want diamonds, they are prepared to pay a high price for them.
			D)	The fact that diamonds are more plentiful than water in some countries.
2			Which of the following products are likely to yield the greatest amount of consumer surplus?
			A)	Water
			B)	Diamonds
			C)	Ice cream
			D)	A Persian carpet

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3			If partial units cannot be purchased, what is the value of total consumer surplus at a unit price of $5?
			A)	$10
			B)	$12
			C)	$20
			D)	$35

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4			If partial units cannot be purchased, at what unit price is the total consumer surplus equal to $21?
			A)	$3
			B)	$4
			C)	$5
			D)	$6
			E)	$9
5			Suppose that Jon is purchasing the optimal amounts of apples and oranges. The marginal utility of the last apple is 8 and of the last orange is 6. If the price of an apple is $1, what must be the price of an orange?
			A)	50 cents
			B)	75 cents
			C)	$1.33
			D)	$1.40
			E)	Cannot be determined from this information

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6			If Ketta has a budget of $15, and the price of both are coffees and croissants are $3 each, what will be her optimal purchase?
			A)	5 croissants
			B)	1 coffee and 4 croissants
			C)	2 coffees and 3 croissants
			D)	3 coffees and 2 croissants
			E)	4 coffees and 1 croissant

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7			If Ketta has a budget of $15 and the price of croissants is $3, but the price of a coffee is $2, what will be her optimal purchase?
			A)	5 croissants
			B)	3 coffees and 2 croissants
			C)	3 coffees and 3 croissants
			D)	4 coffees and 3 croissants
			E)	6 coffees and 1 croissant