Question 1

When an individual continues to eat more turkey,if the principle of diminishing marginal utility applies,each additional serving yields:

Accepted Answer

A) more marginal utility. 
B) less marginal utility. 
C) the same amount of marginal utility. 
D) less total utility. 
A) more marginal utility. 
B) less marginal utility. 
C) the same amount of marginal utility. 
D) less total utility.

Question 2

An individual gets 5 units of utility from one slice of pizza and 9 units of utility from two slices of pizza.The principle of diminishing marginal utility implies that the total utility from three slices of pizza will be _____ units of utility.

Accepted Answer

A) exactly 12 
B) less than 13 
C) less than 9 
D) more than 14 
A) exactly 12 
B) less than 13 
C) less than 9 
D) more than 14

Question 3

Use the following to answer question:  
-(Table: Exercise and Total Utility)Use Table: Exercise and Total Utility.The principle of diminishing marginal utility is seen:

Accepted Answer

A) nowhere,as marginal utility is always increasing. 
B) immediately,from the first hour and beyond. 
C) between the third and fourth hours. 
D) after the second hour of exercise. 
A) nowhere,as marginal utility is always increasing. 
B) immediately,from the first hour and beyond. 
C) between the third and fourth hours. 
D) after the second hour of exercise.

Question 4

The amount by which total utility rises when an additional slice of pie is consumed is called:

Accepted Answer

A) average utility. 
B) the law of diminishing returns. 
C) incremental utility. 
D) marginal utility. 
A) average utility. 
B) the law of diminishing returns. 
C) incremental utility. 
D) marginal utility.

Question 5

Consuming more of a good that has become cheaper in place of a good that has become relatively more expensive is the:

Accepted Answer

A) income effect. 
B) substitution effect. 
C) budget constraint. 
D) inferior effect. 
A) income effect. 
B) substitution effect. 
C) budget constraint. 
D) inferior effect.

Question 6

If,for Adam,the marginal utility of ties is greater than the marginal utility of shirts,to maximize utility,Adam should:

Accepted Answer

A) buy more ties and fewer shirts. 
B) buy more shirts and fewer ties. 
C) buy the same number of each. 
D) determine the price of ties and the price of shirts before he decides how many of each to buy. 
A) buy more ties and fewer shirts. 
B) buy more shirts and fewer ties. 
C) buy the same number of each. 
D) determine the price of ties and the price of shirts before he decides how many of each to buy.

Question 7

Utility is MOST closely related to:

Accepted Answer

A) usefulness. 
B) satisfaction. 
C) requirement. 
D) necessity. 
A) usefulness. 
B) satisfaction. 
C) requirement. 
D) necessity.

Question 8

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.Put tacos on the horizontal axis and milkshakes on the vertical axis.The horizontal intercept for Faruq's budget line is _____ tacos.

Accepted Answer

A) 50 
B) 10 
C) 5 
D) 100 
A) 50 
B) 10 
C) 5 
D) 100

Question 9

Use the following to answer question:  
-(Figure: Budget Lines for Tea and Scones)Use Figure: Budget Lines for Tea and Scones.For months now,Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone has been $1.Which chart shows what will happen to her budget line if her income decreases to $10?

Accepted Answer

A) A 
B) B 
C) C 
D) D 
A) A 
B) B 
C) C 
D) D

Question 10

How much _____ Susan obtains from eating green beans is a measure of the utility of green beans for her.

Accepted Answer

A) efficiency 
B) usefulness 
C) cost 
D) satisfaction 
A) efficiency 
B) usefulness 
C) cost 
D) satisfaction

Question 11

Jill,a careful utility maximizer,consumes peanut butter and ice cream.Assume that both peanut butter and ice cream are normal goods.Right after she achieves the utility-maximizing level of consumption of the two goods,the price of peanut butter increases.After she adjusts to this event,the marginal utility of peanut butter goes _____ and that of ice cream goes _____.

Accepted Answer

A) up;up 
B) down;down 
C) down;up 
D) up;down 
A) up;up 
B) down;down 
C) down;up 
D) up;down

Question 12

The amount by which an additional unit of a good or service changes a consumer's total satisfaction,all other things unchanged,is _____ utility.

Accepted Answer

A) marginal 
B) maximum 
C) average 
D) expected 
A) marginal 
B) maximum 
C) average 
D) expected

Question 13

If Paloma is consuming the utility-maximizing quantities of pizza and soda pop:

Accepted Answer

A) the price of pizza equals the price of soda pop. 
B) the marginal utility of pizza is equal to the marginal utility of soda pop. 
C) the ratio of the marginal utility to price is the same for pizza as it is for soda pop. 
D) the total utility of pizza is equal to the total utility of soda pop. 
A) the price of pizza equals the price of soda pop. 
B) the marginal utility of pizza is equal to the marginal utility of soda pop. 
C) the ratio of the marginal utility to price is the same for pizza as it is for soda pop. 
D) the total utility of pizza is equal to the total utility of soda pop.

Question 14

Use the following to answer question:  
-(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.Suppose Denise initially chooses consumption bundle A.She can increase her total utility by:

Accepted Answer

A) consuming more gasoline and less coffee. 
B) consuming more coffee and less gasoline. 
C) not consuming more coffee or gasoline. 
D) consuming more coffee and more gasoline. 
A) consuming more gasoline and less coffee. 
B) consuming more coffee and less gasoline. 
C) not consuming more coffee or gasoline. 
D) consuming more coffee and more gasoline.

Question 15

Use the following to answer question:  
-(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.When Denise maximizes her utility,her marginal utility per dollar spent on gallons of gasoline equals _____ utils per dollar.

Accepted Answer

A) 0.6 
B) 0.8 
C) 0.5 
D) 1.6 
A) 0.6 
B) 0.8 
C) 0.5 
D) 1.6

Question 16

The consumption bundles that Mei CAN afford but that do not use up her entire income lie _____ the budget line.

Accepted Answer

A) within 
B) beyond 
C) on 
D) at the corner of 
A) within 
B) beyond 
C) on 
D) at the corner of

Question 17

The marginal utility of a good is used to describe any good (such as a mushroom brush or a shrimp deveiner)that has only limited usefulness.

Accepted Answer

A) True 
 B)False

Question 18

Use the following to answer question:  
-(Table: Exercise and Total Utility)Use Table: Exercise and Total Utility.Marginal utility:

Accepted Answer

A) initially decreases but eventually increases as more exercise is consumed. 
B) always decreases as more exercise is consumed. 
C) initially increases but eventually decreases as more exercise is consumed. 
D) initially increases but eventually stays constant as more exercise is consumed. 
A) initially decreases but eventually increases as more exercise is consumed. 
B) always decreases as more exercise is consumed. 
C) initially increases but eventually decreases as more exercise is consumed. 
D) initially increases but eventually stays constant as more exercise is consumed.

Question 19

According to the substitution effect,which statement BEST describes why a decrease in the price of LED light bulbs leads to an increase in the quantity of LED light bulbs demanded?

Accepted Answer

A) Buyers have more real income. 
B) Buyers always purchase fewer substitute goods for LED light bulbs. 
C) Buyers tend to purchase more of the now less expensive LED light bulbs. 
D) Buyers tend to purchase more complementary goods to LED light bulbs. 
A) Buyers have more real income. 
B) Buyers always purchase fewer substitute goods for LED light bulbs. 
C) Buyers tend to purchase more of the now less expensive LED light bulbs. 
D) Buyers tend to purchase more complementary goods to LED light bulbs.

Question 20

In the standard models in economics,consumers maximize utility because they are:

Accepted Answer

A) rational. 
B) demand-constrained. 
C) inferior. 
D) comfortable. 
A) rational. 
B) demand-constrained. 
C) inferior. 
D) comfortable.

When an individual continues to eat more turkey,if the principle of diminishing marginal utility applies,each additional serving yields:

An individual gets 5 units of utility from one slice of pizza and 9 units of utility from two slices of pizza.The principle of diminishing marginal utility implies that the total utility from three slices of pizza will be _____ units of utility.

Use the following to answer question: -(Table: Exercise and Total Utility)Use Table: Exercise and Total Utility.The principle of diminishing marginal utility is seen:

The amount by which total utility rises when an additional slice of pie is consumed is called:

Consuming more of a good that has become cheaper in place of a good that has become relatively more expensive is the:

If,for Adam,the marginal utility of ties is greater than the marginal utility of shirts,to maximize utility,Adam should:

Utility is MOST closely related to:

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.Put tacos on the horizontal axis and milkshakes on the vertical axis.The horizontal intercept for Faruq's budget line is _____ tacos.

How much _____ Susan obtains from eating green beans is a measure of the utility of green beans for her.

The amount by which an additional unit of a good or service changes a consumer's total satisfaction,all other things unchanged,is _____ utility.

If Paloma is consuming the utility-maximizing quantities of pizza and soda pop:

Use the following to answer question: -(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.Suppose Denise initially chooses consumption bundle A.She can increase her total utility by:

Use the following to answer question: -(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.When Denise maximizes her utility,her marginal utility per dollar spent on gallons of gasoline equals _____ utils per dollar.

The consumption bundles that Mei CAN afford but that do not use up her entire income lie _____ the budget line.

The marginal utility of a good is used to describe any good (such as a mushroom brush or a shrimp deveiner)that has only limited usefulness.

Use the following to answer question: -(Table: Exercise and Total Utility)Use Table: Exercise and Total Utility.Marginal utility:

According to the substitution effect,which statement BEST describes why a decrease in the price of LED light bulbs leads to an increase in the quantity of LED light bulbs demanded?

In the standard models in economics,consumers maximize utility because they are:

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

When an individual continues to eat more turkey,if the principle of diminishing marginal utility applies,each additional serving yields:

An individual gets 5 units of utility from one slice of pizza and 9 units of utility from two slices of pizza.The principle of diminishing marginal utility implies that the total utility from three slices of pizza will be _____ units of utility.

Use the following to answer question: -(Table: Exercise and Total Utility)Use Table: Exercise and Total Utility.The principle of diminishing marginal utility is seen:

The amount by which total utility rises when an additional slice of pie is consumed is called:

Consuming more of a good that has become cheaper in place of a good that has become relatively more expensive is the:

If,for Adam,the marginal utility of ties is greater than the marginal utility of shirts,to maximize utility,Adam should:

Utility is MOST closely related to:

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.Put tacos on the horizontal axis and milkshakes on the vertical axis.The horizontal intercept for Faruq's budget line is _____ tacos.

How much _____ Susan obtains from eating green beans is a measure of the utility of green beans for her.

The amount by which an additional unit of a good or service changes a consumer's total satisfaction,all other things unchanged,is _____ utility.

If Paloma is consuming the utility-maximizing quantities of pizza and soda pop:

Use the following to answer question: -(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.Suppose Denise initially chooses consumption bundle A.She can increase her total utility by:

Use the following to answer question: -(Table: Denise's Consumption of Coffee and Gasoline)Use Table: Denise's Consumption of Coffee and Gasoline.When Denise maximizes her utility,her marginal utility per dollar spent on gallons of gasoline equals _____ utils per dollar.

The consumption bundles that Mei CAN afford but that do not use up her entire income lie _____ the budget line.

The marginal utility of a good is used to describe any good (such as a mushroom brush or a shrimp deveiner)that has only limited usefulness.

Use the following to answer question: -(Table: Exercise and Total Utility)Use Table: Exercise and Total Utility.Marginal utility:

According to the substitution effect,which statement BEST describes why a decrease in the price of LED light bulbs leads to an increase in the quantity of LED light bulbs demanded?

In the standard models in economics,consumers maximize utility because they are:

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