Exam 10: The Rational Consumer

Steven consumes staples and paper clips.He is maximizing his utility in consumption of both goods.The price of staples falls.Assuming that diminishing marginal utility applies to both goods,as Steven adjusts to this event,the marginal utility of staples will _,and the marginal utility of paper clips will _.

(Multiple Choice)

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Question 121

Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.If Faruq spends all of his income,the opportunity cost of one milkshake is equal to _____ tacos.

(Multiple Choice)

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Question 122

Assume that diminishing marginal utility applies to both textbooks and concert tickets and that Sun is spending all of his income.If Sun purchases a combination of textbooks and concert tickets such that MU_Textbooks/P_Textbooks = 100 and MU_Tickets/ /P_Ticke_ts = 80,to maximize utility,Sun should buy _ textbooks and _ tickets.

(Multiple Choice)

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Question 123

Tonya's budget constraint for gallons of gasoline (G)and shirts (S)each month can be expressed by the equation G = 100 - 2S,where G is the number of gallons of gasoline she buys and S is the total number of shirts she buys.Assume that she spends her entire budget each month.If the price of shirts is $10,which consumption bundle lies INSIDE Tonya's budget line?

(Multiple Choice)

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Question 124

(Scenario: Tom's Budget Constraint)Use Scenario: Tom's Budget Constraint.The combination of _ music downloads and _ movies lies OUTSIDE Tom's budget line (meaning Tom cannot afford this combination). Scenario: Tom's Budget Constraint Tom is trying to decide how to allocate his $50 budget for music downloads and online movie streaming when the price of a music download is $1 and the price of a movie is $5.

(Multiple Choice)

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Question 125

If total utility is at a maximum,marginal utility is:

(Multiple Choice)

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Question 126

Diego spends all of his income on milkshakes and french fries.At his current consumption levels,the marginal utility of one milkshake and the marginal utility of one order of french fries are equal.According to the optimal consumption rule,Diego:

(Multiple Choice)

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Question 127

Jane is a utility-maximizing consumer who is spending her entire budget on the optimal quantity of wallets and eyeglasses.The price of wallets falls.Jane will ___ her consumption of wallets if wallets are a(n)_ good and (because)the income effect ___ the substitution effect.

(Multiple Choice)

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Question 128

Use the following to answer question: -(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.Denise will maximize her utility by consuming bundle:

(Multiple Choice)

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Question 129

Assume that,as the price of cauliflower falls,the income effect causes consumers to buy fewer heads of cauliflower.We can conclude that cauliflower is:

(Multiple Choice)

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Question 130

The marginal utility of eating sweet potatoes is the:

(Multiple Choice)

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Question 131

Suppose bad weather and pollution dramatically reduce the supply of crawfish in Louisiana next year.This would MOST likely lead to _____ in the marginal utility of crawfish consumption.

(Multiple Choice)

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Question 132

Assume that diminishing marginal utility applies to both ballet slippers and tutus and that Natasha is spending all of her income.If Natasha purchases a combination of ballet slippers and tutus such that MU_Slippers/ /P_Slippers = 20 and MU_Tutus/ /P_Tutus = 5,to maximize utility,Natasha should buy _ slippers and _ tutus.

(Multiple Choice)

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Question 133

Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.If Faruq purchases 10 milkshakes,he can purchase _____ tacos.

(Multiple Choice)

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Question 134

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)

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Question 135

Use the following to answer question: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that goods X and Y both cost $1 per unit and you have $7 to spend on both goods.To maximize utility,you would consume _ units of X and _ units of Y.

(Multiple Choice)

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Question 136

As you consume more turkey relative to mashed potatoes,the _____ of turkey eventually decreases.

(Multiple Choice)

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Question 137

(Table: Utility from Pizza and Beer)Use Table: Utility from Pizza and Beer.At All-Sports Bar,a bottle of beer costs $4,and a slice of pizza costs $2.Denard has $10 to spend on beer and pizza.To maximize his utility,Denard will consume _ slice(s)of pizza and _ bottle(s)of beer.

(Multiple Choice)

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Question 138

At Frankie's Buy-the-Slice Pizza,Brian eats eight slices of pizza.He says that,because pizza is $2 per slice,the utility-maximizing decision is to eat until your marginal utility per dollar is zero.Brian's explanation is correct.

(True/False)

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Question 139

Freddy has eaten three corn dogs at the county fair,and if he eats another,he will get sick on the roller coaster.Knowing this,and ignoring any impact that price might have on his decision,we can say that,for the fourth corn dog,the:

(Multiple Choice)

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Question 140

Showing 121 - 140 of 182

Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.If Faruq spends all of his income,the opportunity cost of one milkshake is equal to _____ tacos.

If total utility is at a maximum,marginal utility is:

Diego spends all of his income on milkshakes and french fries.At his current consumption levels,the marginal utility of one milkshake and the marginal utility of one order of french fries are equal.According to the optimal consumption rule,Diego:

Jane is a utility-maximizing consumer who is spending her entire budget on the optimal quantity of wallets and eyeglasses.The price of wallets falls.Jane will ___ her consumption of wallets if wallets are a(n)_ good and (because)the income effect ___ the substitution effect.

Use the following to answer question: -(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.Denise will maximize her utility by consuming bundle:

Assume that,as the price of cauliflower falls,the income effect causes consumers to buy fewer heads of cauliflower.We can conclude that cauliflower is:

The marginal utility of eating sweet potatoes is the:

Suppose bad weather and pollution dramatically reduce the supply of crawfish in Louisiana next year.This would MOST likely lead to _____ in the marginal utility of crawfish consumption.

Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.If Faruq purchases 10 milkshakes,he can purchase _____ tacos.

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.

Use the following to answer question: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that goods X and Y both cost $1 per unit and you have $7 to spend on both goods.To maximize utility,you would consume _ units of X and _ units of Y.

As you consume more turkey relative to mashed potatoes,the _____ of turkey eventually decreases.

(Table: Utility from Pizza and Beer)Use Table: Utility from Pizza and Beer.At All-Sports Bar,a bottle of beer costs $4,and a slice of pizza costs $2.Denard has $10 to spend on beer and pizza.To maximize his utility,Denard will consume _ slice(s)of pizza and _ bottle(s)of beer.

At Frankie's Buy-the-Slice Pizza,Brian eats eight slices of pizza.He says that,because pizza is $2 per slice,the utility-maximizing decision is to eat until your marginal utility per dollar is zero.Brian's explanation is correct.

Freddy has eaten three corn dogs at the county fair,and if he eats another,he will get sick on the roller coaster.Knowing this,and ignoring any impact that price might have on his decision,we can say that,for the fourth corn dog,the:

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

Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.If Faruq spends all of his income,the opportunity cost of one milkshake is equal to _____ tacos.

If total utility is at a maximum,marginal utility is:

Diego spends all of his income on milkshakes and french fries.At his current consumption levels,the marginal utility of one milkshake and the marginal utility of one order of french fries are equal.According to the optimal consumption rule,Diego:

Jane is a utility-maximizing consumer who is spending her entire budget on the optimal quantity of wallets and eyeglasses.The price of wallets falls.Jane will _____ her consumption of wallets if wallets are a(n)_____ good and (because)the income effect _____ the substitution effect.

Use the following to answer question: -(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.Denise will maximize her utility by consuming bundle:

Assume that,as the price of cauliflower falls,the income effect causes consumers to buy fewer heads of cauliflower.We can conclude that cauliflower is:

The marginal utility of eating sweet potatoes is the:

Suppose bad weather and pollution dramatically reduce the supply of crawfish in Louisiana next year.This would MOST likely lead to _____ in the marginal utility of crawfish consumption.

Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.If Faruq purchases 10 milkshakes,he can purchase _____ tacos.

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.

Use the following to answer question: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that goods X and Y both cost $1 per unit and you have $7 to spend on both goods.To maximize utility,you would consume _____ units of X and _____ units of Y.

As you consume more turkey relative to mashed potatoes,the _____ of turkey eventually decreases.

(Table: Utility from Pizza and Beer)Use Table: Utility from Pizza and Beer.At All-Sports Bar,a bottle of beer costs $4,and a slice of pizza costs $2.Denard has $10 to spend on beer and pizza.To maximize his utility,Denard will consume _____ slice(s)of pizza and _____ bottle(s)of beer.

At Frankie's Buy-the-Slice Pizza,Brian eats eight slices of pizza.He says that,because pizza is $2 per slice,the utility-maximizing decision is to eat until your marginal utility per dollar is zero.Brian's explanation is correct.

Freddy has eaten three corn dogs at the county fair,and if he eats another,he will get sick on the roller coaster.Knowing this,and ignoring any impact that price might have on his decision,we can say that,for the fourth corn dog,the:

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

Jane is a utility-maximizing consumer who is spending her entire budget on the optimal quantity of wallets and eyeglasses.The price of wallets falls.Jane will ___ her consumption of wallets if wallets are a(n)_ good and (because)the income effect ___ the substitution effect.

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.

Use the following to answer question: -(Table: Consumer Equilibrium)Use Table: Consumer Equilibrium.Assume that goods X and Y both cost $1 per unit and you have $7 to spend on both goods.To maximize utility,you would consume _ units of X and _ units of Y.

(Table: Utility from Pizza and Beer)Use Table: Utility from Pizza and Beer.At All-Sports Bar,a bottle of beer costs $4,and a slice of pizza costs $2.Denard has $10 to spend on beer and pizza.To maximize his utility,Denard will consume _ slice(s)of pizza and _ bottle(s)of beer.