34. Partial information on three baskets containing goods A and B is given in the table below. The marginal rate of substitution of B for A, (MRSBA), at Basket 2 is also provided. Basket Units of A Units of B MRSBA1 ? 30 2 50 35 4.0 3 40 40 A consumer’s indifference curves are strictly convex and he claims that he is indifferent between Baskets 2 and 3. If he is also indifferent between Baskets 1 and 3, the number of units of A in basket 1 is most likely: A. equal to 60. B. less than 60. C. greater than 60.

QUESTIONS 33 THROUGH 44 RELATE TO ECONOMICS

MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING 2013

34. Partial information on three baskets containing goods A and B is given in the table below. The

marginal rate of substitution of B for A, (MRS

), at Basket 2 is also provided.

Basket

Units of A

Units of B

MRS

4.0

A consumer’s indifference curves are strictly convex and he claims that he is indifferent between

Baskets 2 and 3. If he is also indifferent between Baskets 1 and 3, the number of units of A in

basket 1 is most likely:

A. equal to 60.

B. less than 60.

C. greater than 60.