Exam 6: Household Behavior and Consumer Choice

Refer to the information provided in Figure 6.9 below to answer the question(s) that follow. Figure 6.9 -Refer to Figure 6.9. The marginal utility of the second video game rental is

For Adrian, the marginal utility of the 5th energy drink in a day is positive and the marginal utility of the 6th energy drink in a day is zero. This

Refer to the information provided in Figure 6.11 below to answer the question that follows. Figure 6.11 -Refer to Figure 6.11. Gordon's opportunity cost of one hour of leisure is

When the price of a good increases, the budget constraint shifts in parallel to the original budget constraint.

The diamond/water paradox states that things with the ________ value in use frequently have ________ value in exchange.

When the price of a good increases, the budget constraint does not change.

If a household's income falls by 10%, its budget constraint will

________ utility is the additional satisfaction gained by consuming ________ of a good.

An assumption underlying indifference curve analysis is that MUx/MUy ________ as more of X and less of Y is consumed.

Refer to the information provided in Figure 6.1 below to answer the question(s) that follow. Figure 6.1 -Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hamburger is $4.00. Tom's monthly income is

On a preference map, higher indifference curves represent higher levels of total utility.

Refer to the information provided in Figure 6.8 below to answer the question(s) that follow. Figure 6.8 -Refer to Figure 6.8. The ________ movie rental has a marginal utility of zero.

Refer to the information provided in Figure 6.4 below to answer the question(s) that follow. Figure 6.4 -Refer to Figure 6.4. Bill's budget constraint is AC. His budget constraint would shift to AB if the price of

Refer to the information provided in Table 6.3 below to answer the question(s) that follow. Table 6.3 Dozens of Oysters per Day Total Utility Marginal Utility 1 60 2 104 3 134 4 152 8 5 Number of Beersper Day Total Utility Marginal Utility 1 40 2 70 3 94 4 114 5 14 -Refer to Table 6.3. Diminishing marginal utility sets in after the ________ dozen oysters per day.

Kathleen likes avocado and crab dip. After eating avocado and crab dip with four crackers, she switches to cheese with crackers. We can conclude that

A fall in the price of 7-UP that causes a household to shift its purchasing pattern away from Sprite and toward 7-UP is the ________ effect of a price change.

Refer to the information provided in Figure 6.14 below to answer the question(s) that follow. Figure 6.14 -Refer to Figure 6.14. The slope of the indifference curve is the ratio of the

Price increases will ________ a household's choice set.

Carlos can buy either sushi or eggrolls. If the prices of sushi and eggrolls triple and Carlos's money income doubles, we can deduce that Carlos's budget constraint will

For normal goods