Question 1

As more bananas are consumed, other things constant, marginal utility tends to decrease at:

Accepted Answer

A)  the same rate for all people. 
B)  the same rate for all goods for a given person. 
C)  the same rate for all people 
D)  different rates for different people and for other goods. 
E)  different rates for different people, but at the same rate as other goods. 
A)  the same rate for all people. 
B)  the same rate for all goods for a given person. 
C)  the same rate for all people 
D)  different rates for different people and for other goods. 
E)  different rates for different people, but at the same rate as other goods.

Question 2

When quantities of two goods belong to the same indifference curve, which of the following is true?

Accepted Answer

A)  The combinations of the two goods along the indifference curve yield the same total utility. 
B)  Prices of the two goods are equal. 
C)  Marginal utilities of both goods are equal. 
D)  The total utility of all combinations above the curve equal zero. 
A)  The combinations of the two goods along the indifference curve yield the same total utility. 
B)  Prices of the two goods are equal. 
C)  Marginal utilities of both goods are equal. 
D)  The total utility of all combinations above the curve equal zero.

Question 3

Exhibit 6A-6 Consumer equilibrium
​  
-As shown in Exhibit 6A-6, the marginal rate of substitution (MRS) at point X is equal to:

Accepted Answer

A)  0.75. 
B)  2.0. 
C)  0.5. 
D)  1.0. 
A)  0.75. 
B)  2.0. 
C)  0.5. 
D)  1.0.

Question 4

What term do economists use to refer to the satisfaction that an individual expects to receive from consuming a good or service?

Accepted Answer

A)  Utility. 
B)  Response. 
C)  Usability. 
D)  Demand. 
E)  Desirable. 
A)  Utility. 
B)  Response. 
C)  Usability. 
D)  Demand. 
E)  Desirable.

Question 5

Exhibit 6A-2 Consumer Equilibrium
​  
-Given the budget lines and indifference curves shown in Exhibit 6A-2, point B yields:

Accepted Answer

A)  more total utility than point F. 
B)  more total utility than points A and C. 
C)  less total utility than point F. 
D)  equal total utility to point F. 
A)  more total utility than point F. 
B)  more total utility than points A and C. 
C)  less total utility than point F. 
D)  equal total utility to point F.

Question 6

"I'm tired of eating muffins for breakfast. Today, I'm trying a bagel." These statements most clearly reflect the:

Accepted Answer

A)  law of increasing returns to scale. 
B)  second law of demand. 
C)  law of diminishing marginal utility. 
D)  law of comparative advantage. 
A)  law of increasing returns to scale. 
B)  second law of demand. 
C)  law of diminishing marginal utility. 
D)  law of comparative advantage.

Question 7

As we move down a person's demand curve, marginal utility declines.

Accepted Answer

A) True 
 B)False

Question 8

The law of diminishing marginal utility implies that the marginal utility of my fifth hot dog is less than the marginal utility of my second soda, other things constant.

Accepted Answer

A) True 
 B)False

Question 9

Exhibit 6-2 Total utility for hamburgers, fries, and Cokes $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { T otal Utility } \
\text { from Hamburgers }
\end{array} & \begin{array} { c } 
\text { Total Utility } \
\text { from Fries }
\end{array} & \begin{array} { l } 
\text { Total Utility } \
\text { from Cokes }
\end{array} \
\hline 1 \text { hamburger (100 utils) } & 1 \text { order of fries (30 utils) } & 1 \text { Coke (40 utils) } \
2 \text { hamburgers (180 utils) } & 2 \text { orders of fries } ( 50 \mathrm { utils } ) & 2 \text { Cokes } ( 60 \mathrm { util } \mathrm { s } ) \
3 \text { hamburgers (240 utils) } & 3 \text { orders of fries } 60 \mathrm { utils } ) & 3 \text { Cokes } ( 70 \mathrm { utils } ) \
\hline
\end{array}$$
-In Exhibit 6-2 assume that the price of hamburgers is $2 each, fries cost 50 cents each, and Cokes cost $1 each. What is the marginal utility of having a second order of fries?

Accepted Answer

A)  10 utils. 
B)  20 utils. 
C)  30 utils. 
D)  50 utils. 
A)  10 utils. 
B)  20 utils. 
C)  30 utils. 
D)  50 utils.

Question 10

Indifference curve analysis is based on numerical measurement of utility.

Accepted Answer

A) True 
 B)False

Question 11

A line that represents combinations of two goods that a consumer can purchase with a fixed income and given price for each good is called the:

Accepted Answer

A)  indifference curve. 
B)  demand curve. 
C)  budget line. 
D)  money line. 
A)  indifference curve. 
B)  demand curve. 
C)  budget line. 
D)  money line.

Question 12

Exhibit 6A-3 Consumer equilibrium
​  
-Given the budget line and indifference curves shown in Exhibit 6A-3, consumer equilibrium occurs at point:

Accepted Answer

A)  V. 
B)  W. 
C)  X. 
D)  Y. 
E)  Z. 
A)  V. 
B)  W. 
C)  X. 
D)  Y. 
E)  Z.

As more bananas are consumed, other things constant, marginal utility tends to decrease at:

When quantities of two goods belong to the same indifference curve, which of the following is true?

Exhibit 6A-6 Consumer equilibrium -As shown in Exhibit 6A-6, the marginal rate of substitution (MRS) at point X is equal to:

What term do economists use to refer to the satisfaction that an individual expects to receive from consuming a good or service?

Exhibit 6A-2 Consumer Equilibrium -Given the budget lines and indifference curves shown in Exhibit 6A-2, point B yields:

"I'm tired of eating muffins for breakfast. Today, I'm trying a bagel." These statements most clearly reflect the:

As we move down a person's demand curve, marginal utility declines.

The law of diminishing marginal utility implies that the marginal utility of my fifth hot dog is less than the marginal utility of my second soda, other things constant.

Indifference curve analysis is based on numerical measurement of utility.

A line that represents combinations of two goods that a consumer can purchase with a fixed income and given price for each good is called the:

Exhibit 6A-3 Consumer equilibrium -Given the budget line and indifference curves shown in Exhibit 6A-3, consumer equilibrium occurs at point:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

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Exam 6: Consumer Choice Theory

As more bananas are consumed, other things constant, marginal utility tends to decrease at:

When quantities of two goods belong to the same indifference curve, which of the following is true?

Exhibit 6A-6 Consumer equilibrium ​ -As shown in Exhibit 6A-6, the marginal rate of substitution (MRS) at point X is equal to:

What term do economists use to refer to the satisfaction that an individual expects to receive from consuming a good or service?

Exhibit 6A-2 Consumer Equilibrium ​ -Given the budget lines and indifference curves shown in Exhibit 6A-2, point B yields:

"I'm tired of eating muffins for breakfast. Today, I'm trying a bagel." These statements most clearly reflect the:

As we move down a person's demand curve, marginal utility declines.

The law of diminishing marginal utility implies that the marginal utility of my fifth hot dog is less than the marginal utility of my second soda, other things constant.

Indifference curve analysis is based on numerical measurement of utility.

A line that represents combinations of two goods that a consumer can purchase with a fixed income and given price for each good is called the:

Exhibit 6A-3 Consumer equilibrium ​ -Given the budget line and indifference curves shown in Exhibit 6A-3, consumer equilibrium occurs at point:

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exhibit 6A-6 Consumer equilibrium -As shown in Exhibit 6A-6, the marginal rate of substitution (MRS) at point X is equal to:

Exhibit 6A-2 Consumer Equilibrium -Given the budget lines and indifference curves shown in Exhibit 6A-2, point B yields:

Exhibit 6A-3 Consumer equilibrium -Given the budget line and indifference curves shown in Exhibit 6A-3, consumer equilibrium occurs at point: