Exam 10: The Rational Consumer

Assuming that diminishing marginal utility applies to both pomegranates and bananas,if Vanessa buys more pomegranates and fewer bananas,the ___ utility of pomegranates will _,and the _ utility of bananas will ___.

(Multiple Choice)

5.0/5

(90)

Question 61

Tori devotes all of her income to the consumption of peanut butter and jelly.She has just discovered that at her current level of consumption the marginal utility of a jar of peanut butter is 5 and the marginal utility of a jar of jelly is 7.Which statement is TRUE?

(Multiple Choice)

4.9/5

(70)

Question 62

If a consumer derives more utility by spending an additional $1 on good X,rather than on good Y:

(Multiple Choice)

4.9/5

(82)

Question 63

A consumer is attempting to maximize utility in her consumption of goods A and B.If her income and the price of good A do not change but the marginal utility of good B is constant and the price of good B decreases,this will _____ utility per dollar spent on good B.

(Multiple Choice)

4.8/5

(81)

Question 64

Housing is a normal good that tends to take up a substantial share of a consumer's spending.An increase in the price of housing will result in:

(Multiple Choice)

4.8/5

(96)

Question 65

Sally devotes all of her income to the consumption of apples and Reese's Peanut Butter Cups.At her current level of consumption,the marginal utility of an apple is 6 and the marginal utility of a Reese's Peanut Butter Cup is 8.Assume that diminishing marginal utility applies to both apples and Reese's Peanut Butter Cups.Suppose the price of an apple is $0.20 and the price of a Reese's Peanut Butter Cup is $0.25.To maximize her total utility,assuming that the goods are divisible,she would:

(Multiple Choice)

4.8/5

(66)

Question 66

If the marginal utility of hot dogs exceeds the marginal utility of french fries,then the consumer should necessarily adjust their consumption toward eating more hot dogs and fewer french fries.

(True/False)

4.7/5

(83)

Question 67

If total utility is rising as more salsa is consumed,we can definitely say that marginal utility is:

(Multiple Choice)

4.9/5

(83)

Question 68

At the optimal consumption bundle:

(Multiple Choice)

4.8/5

(90)

Question 69

Antonio derives more utility from spending an additional dollar on boots than on gloves.We can assume that:

(Multiple Choice)

4.8/5

(77)

Question 70

Use the following to answer question: -(Table: Marginal Utility per Dollar II)Use Table: Marginal Utility per Dollar II.If Manuel has $18 to spend on potatoes and clams,then the utility-maximizing combination is _ pound(s)of clams and _ pound(s)of potatoes.

(Multiple Choice)

4.7/5

(66)

Question 71

For most goods,demand curves slope downward because:

(Multiple Choice)

4.9/5

(83)

Question 72

Use the following to answer question: -(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A(n)___ in the price of potatoes would rotate the budget line,changing the intercept on the _ axis and moving it ___ the origin.

(Multiple Choice)

4.9/5

(86)

Question 73

Which statement is FALSE?

(Multiple Choice)

4.8/5

(75)

Question 74

The relation between an individual's consumption bundle and her satisfaction is called a _____ function.

(Multiple Choice)

4.8/5

(73)

Question 75

The income effect can refer to a change in:

(Multiple Choice)

4.8/5

(76)

Question 76

Use the following to answer question: -(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's marginal utility from eating macaroni becomes negative at the _____ serving.

(Multiple Choice)

4.7/5

(87)

Question 77

Use the following to answer question: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that the price of good X is $2 per unit and the price of good Y is $1 per unit,that you consume three units of good X and three units of good Y,and that you are spending all of your income.To maximize utility,assuming that the goods are divisible,you would consume _ of X and _ of Y.

(Multiple Choice)

4.8/5

(78)

Question 78

The marginal utility of coffee consumption for Steve is the change in _____ generated by consuming an additional cup of coffee.

(Multiple Choice)

5.0/5

(92)

Question 79

The income effect of a price change is the effect on consumption changes as a result of a change in:

(Multiple Choice)

4.9/5

(82)

Question 80

Showing 61 - 80 of 182

Assuming that diminishing marginal utility applies to both pomegranates and bananas,if Vanessa buys more pomegranates and fewer bananas,the ___ utility of pomegranates will _,and the _ utility of bananas will ___.

Tori devotes all of her income to the consumption of peanut butter and jelly.She has just discovered that at her current level of consumption the marginal utility of a jar of peanut butter is 5 and the marginal utility of a jar of jelly is 7.Which statement is TRUE?

If a consumer derives more utility by spending an additional $1 on good X,rather than on good Y:

A consumer is attempting to maximize utility in her consumption of goods A and B.If her income and the price of good A do not change but the marginal utility of good B is constant and the price of good B decreases,this will _____ utility per dollar spent on good B.

Housing is a normal good that tends to take up a substantial share of a consumer's spending.An increase in the price of housing will result in:

If the marginal utility of hot dogs exceeds the marginal utility of french fries,then the consumer should necessarily adjust their consumption toward eating more hot dogs and fewer french fries.

If total utility is rising as more salsa is consumed,we can definitely say that marginal utility is:

At the optimal consumption bundle:

Antonio derives more utility from spending an additional dollar on boots than on gloves.We can assume that:

Use the following to answer question: -(Table: Marginal Utility per Dollar II)Use Table: Marginal Utility per Dollar II.If Manuel has $18 to spend on potatoes and clams,then the utility-maximizing combination is _ pound(s)of clams and _ pound(s)of potatoes.

For most goods,demand curves slope downward because:

Use the following to answer question: -(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A(n)___ in the price of potatoes would rotate the budget line,changing the intercept on the _ axis and moving it ___ the origin.

Which statement is FALSE?

The relation between an individual's consumption bundle and her satisfaction is called a _____ function.

The income effect can refer to a change in:

Use the following to answer question: -(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's marginal utility from eating macaroni becomes negative at the _____ serving.

The marginal utility of coffee consumption for Steve is the change in _____ generated by consuming an additional cup of coffee.

The income effect of a price change is the effect on consumption changes as a result of a change in:

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Exam 10: The Rational Consumer

Assuming that diminishing marginal utility applies to both pomegranates and bananas,if Vanessa buys more pomegranates and fewer bananas,the _____ utility of pomegranates will _____,and the _____ utility of bananas will _____.

Tori devotes all of her income to the consumption of peanut butter and jelly.She has just discovered that at her current level of consumption the marginal utility of a jar of peanut butter is 5 and the marginal utility of a jar of jelly is 7.Which statement is TRUE?

If a consumer derives more utility by spending an additional $1 on good X,rather than on good Y:

A consumer is attempting to maximize utility in her consumption of goods A and B.If her income and the price of good A do not change but the marginal utility of good B is constant and the price of good B decreases,this will _____ utility per dollar spent on good B.

Housing is a normal good that tends to take up a substantial share of a consumer's spending.An increase in the price of housing will result in:

If the marginal utility of hot dogs exceeds the marginal utility of french fries,then the consumer should necessarily adjust their consumption toward eating more hot dogs and fewer french fries.

If total utility is rising as more salsa is consumed,we can definitely say that marginal utility is:

At the optimal consumption bundle:

Antonio derives more utility from spending an additional dollar on boots than on gloves.We can assume that:

Use the following to answer question: -(Table: Marginal Utility per Dollar II)Use Table: Marginal Utility per Dollar II.If Manuel has $18 to spend on potatoes and clams,then the utility-maximizing combination is _____ pound(s)of clams and _____ pound(s)of potatoes.

For most goods,demand curves slope downward because:

Use the following to answer question: -(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A(n)_____ in the price of potatoes would rotate the budget line,changing the intercept on the _____ axis and moving it _____ the origin.

Which statement is FALSE?

The relation between an individual's consumption bundle and her satisfaction is called a _____ function.

The income effect can refer to a change in:

Use the following to answer question: -(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's marginal utility from eating macaroni becomes negative at the _____ serving.

The marginal utility of coffee consumption for Steve is the change in _____ generated by consuming an additional cup of coffee.

The income effect of a price change is the effect on consumption changes as a result of a change in:

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Consumer Preferences and Consumer Choice

Filters

Assuming that diminishing marginal utility applies to both pomegranates and bananas,if Vanessa buys more pomegranates and fewer bananas,the ___ utility of pomegranates will _,and the _ utility of bananas will ___.

Use the following to answer question: -(Table: Marginal Utility per Dollar II)Use Table: Marginal Utility per Dollar II.If Manuel has $18 to spend on potatoes and clams,then the utility-maximizing combination is _ pound(s)of clams and _ pound(s)of potatoes.

Use the following to answer question: -(Figure and Table: The Budget Line)Use Figure and Table: The Budget Line.A(n)___ in the price of potatoes would rotate the budget line,changing the intercept on the _ axis and moving it ___ the origin.