Question 1

-The table above gives the utility Andy receives from different quantities of vanilla ice cream cones.Complete the table.

Accepted Answer

@#IMG-DLM& The compl

Question 2

Utility is the

Accepted Answer

A)  benefit or satisfaction that a person gets from the consumption of a good or service. 
B)  measure of how useful a resource is in the production process. 
C)  measure of productivity associated with a good or service. 
D)  economic term for consumption possibilities. 
E)  economic term for how changes in price affect a consumer's purchases. 
A)  benefit or satisfaction that a person gets from the consumption of a good or service. 
B)  measure of how useful a resource is in the production process. 
C)  measure of productivity associated with a good or service. 
D)  economic term for consumption possibilities. 
E)  economic term for how changes in price affect a consumer's purchases.

Question 3

A point where the budget line is just touching an indifference curve at one point is

Accepted Answer

A)  the least affordable point. 
B)  the best affordable point. 
C)  on the lowest attainable indifference curve. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct. 
A)  the least affordable point. 
B)  the best affordable point. 
C)  on the lowest attainable indifference curve. 
D)  Both answers B and C are correct. 
E)  Both answers A and C are correct.

Question 4

An increase in the price of a good

Accepted Answer

A)  rotates the budget line inward and changes its slope. 
B)  rotates the budget line outward and changes its slope. 
C)  results in a movement downward along the budget line. 
D)  results in a movement upward along the budget line. 
E)  shifts the budget line inward and does not change its slope. 
A)  rotates the budget line inward and changes its slope. 
B)  rotates the budget line outward and changes its slope. 
C)  results in a movement downward along the budget line. 
D)  results in a movement upward along the budget line. 
E)  shifts the budget line inward and does not change its slope.

Question 5

Reb earns $1,000 per week as a fishing guide in Texas.With this money he buys fishing lures and steaks.Lures cost $5 each,steaks cost $10 each.With this level of income,which consumption points are not possible?

Accepted Answer

A)  200 lures, 0 steaks 
B)  100 lures, 60 steaks 
C)  80 lures, 20 steaks 
D)  0 lures, 50 steaks 
E)  50 lures, 50 steaks 
A)  200 lures, 0 steaks 
B)  100 lures, 60 steaks 
C)  80 lures, 20 steaks 
D)  0 lures, 50 steaks 
E)  50 lures, 50 steaks

Question 6

Marginal utility is equal to which of the following?

Accepted Answer

A)  total income divided by the price of the product 
B)  the change in total utility from consuming one more unit of a good 
C)  the satisfaction obtained from consuming any number of units of a good 
D)  total utility divided by the number of units of the good 
E)  None of the above answers is correct. 
A)  total income divided by the price of the product 
B)  the change in total utility from consuming one more unit of a good 
C)  the satisfaction obtained from consuming any number of units of a good 
D)  total utility divided by the number of units of the good 
E)  None of the above answers is correct.

Question 7

You are studying with a friend,and your friend says "To maximize utility,a consumer must consume the combination of goods so that the marginal utility of good X equals the marginal utility of good Y." Explain whether your friend's statement is correct or incorrect.

Accepted Answer

Your friend's statement is inc

Question 8

-The table above shows Buffy's utility from wooden stakes and cloves of garlic.As Buffy uses more stakes,the marginal utility of a stake ________ and as she uses more cloves of garlic,the marginal utility of a clove of garlic ________.

Accepted Answer

A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases 
E)  does not change; does not change 
A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases 
E)  does not change; does not change

Question 9

Suppose that Hank consumes only Mountain Dew and pizza.If Hank's total utility from all amounts of both Mountain Dew and pizza double from what they were before,then Hank's demand for

Accepted Answer

A)  both goods must double. 
B)  one of the goods must double. 
C)  both goods must decrease by one-half. 
D)  one of the goods must decrease by one-half. 
E)  neither good changes. 
A)  both goods must double. 
B)  one of the goods must double. 
C)  both goods must decrease by one-half. 
D)  one of the goods must decrease by one-half. 
E)  neither good changes.

Question 10

The figure above shows three budget lines.
-Based on the figure above,which of the following would lead the consumer's budget line to shift from BL₀ to BL₂?

Accepted Answer

A)  a rise in the price of water 
B)  a fall in the price of water 
C)  a rise in the price of water and the price of gum 
D)  a decrease in the consumer's budget 
E)  an increase in the consumer's budget 
A)  a rise in the price of water 
B)  a fall in the price of water 
C)  a rise in the price of water and the price of gum 
D)  a decrease in the consumer's budget 
E)  an increase in the consumer's budget

Question 11

Suppose you have one point on a demand curve.To plot another point for this demand curve using a group of indifference curves,

Accepted Answer

A)  transfer all points from the indifference curve to the corresponding demand curve. 
B)  horizontally sum the indifference curves. 
C)  change the price of a good, rotate the budget line, and find the new best affordable point. This new price and quantity is another point on the demand curve. 
D)  calculate the marginal rates of substitution from the indifference curve and transfer these values to the demand curve. 
E)  transfer the budget line so that it becomes the demand curve. 
A)  transfer all points from the indifference curve to the corresponding demand curve. 
B)  horizontally sum the indifference curves. 
C)  change the price of a good, rotate the budget line, and find the new best affordable point. This new price and quantity is another point on the demand curve. 
D)  calculate the marginal rates of substitution from the indifference curve and transfer these values to the demand curve. 
E)  transfer the budget line so that it becomes the demand curve.

Question 12

Timmy makes $100 per week as a taxidermist.He spends all this income to buy pizza and hair gel.The price of a pizza is $10 and the price of a bottle of hair gel is $4.If Timmy buys 6 pizzas per week,how many bottles of gel can he purchase?

Accepted Answer

A)  10 
B)  60 
C)  20 
D)  40 
E)  None of the above answers is correct. 
A)  10 
B)  60 
C)  20 
D)  40 
E)  None of the above answers is correct.

Question 13

As more of a good is consumed,the marginal utility of an additional unit ________,so consumers are willing to pay ________ for an additional unit.

Accepted Answer

A)  decreases; less 
B)  increases; less 
C)  decreases; more 
D)  increases; more 
E)  does not change; less 
A)  decreases; less 
B)  increases; less 
C)  decreases; more 
D)  increases; more 
E)  does not change; less

Question 14

$$\begin{array} { | c | c | } 
\hline \text { Box of doughnuts } & \text { Homer's total utility } \
\hline 1 & 30 \
\hline 2 & 55 \
\hline 3 & 75 \
\hline 4 & 90 \
\hline 5 & 100 \
\hline 6 & 103 \
\hline
\end{array}$$
-The above table shows Homer's utility from boxes of doughnuts.If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes,his

Accepted Answer

A)  total utility and marginal utility will both decrease. 
B)  total utility will decrease, but his marginal utility will increase. 
C)  total utility will increase, but his marginal utility will decrease. 
D)  total utility and marginal utility will both increase. 
E)  None of the above answers is correct. 
A)  total utility and marginal utility will both decrease. 
B)  total utility will decrease, but his marginal utility will increase. 
C)  total utility will increase, but his marginal utility will decrease. 
D)  total utility and marginal utility will both increase. 
E)  None of the above answers is correct.

Question 15

If the price of a good rises and the consumer's budget remains the same,what happens to the consumer's consumption possibilities?

Accepted Answer

The consumer's consumption possibilities

Question 16

If a consumer obtains 20 units of utility for the first unit consumed,10 for the second,and 5 for the third,what is the total utility of consuming three units?

Accepted Answer

A)  20 units 
B)  30 units 
C)  35 units 
D)  5 units 
E)  None of the above answers is correct. 
A)  20 units 
B)  30 units 
C)  35 units 
D)  5 units 
E)  None of the above answers is correct.

Question 17

The price of coffee increases because of low crop yields.If the consumer's utility schedule for coffee remains constant,we can predict that coffee consumption

Accepted Answer

A)  will increase. 
B)  will decrease. 
C)  will stay the same. 
D)  will increase if the marginal utility of coffee diminishes and will decrease if the marginal utility of coffee increases. 
E)  might change, but we need more information to determine if it increased, decreased, or did not change. 
A)  will increase. 
B)  will decrease. 
C)  will stay the same. 
D)  will increase if the marginal utility of coffee diminishes and will decrease if the marginal utility of coffee increases. 
E)  might change, but we need more information to determine if it increased, decreased, or did not change.

Question 18

One reason why the price of diamonds is so high is because the

Accepted Answer

A)  marginal utility of diamonds is zero. 
B)  marginal utility of diamonds is high. 
C)  marginal utility of diamonds is low. 
D)  total utility of diamonds is low. 
E)  total utility of diamonds is high. 
A)  marginal utility of diamonds is zero. 
B)  marginal utility of diamonds is high. 
C)  marginal utility of diamonds is low. 
D)  total utility of diamonds is low. 
E)  total utility of diamonds is high.

Question 19

Brenda's marginal utility per dollar from the second hamburger is 20.Her marginal utility from the third hamburger would be

Accepted Answer

A)  less than 20. 
B)  more than 20. 
C)  equal to 20. 
D)  not comparable to the marginal utility per dollar from the second hamburger. 
E)  some amount, but we need more information to determine how it compares to 20. 
A)  less than 20. 
B)  more than 20. 
C)  equal to 20. 
D)  not comparable to the marginal utility per dollar from the second hamburger. 
E)  some amount, but we need more information to determine how it compares to 20.

Question 20

-Consider an indifference curve for sodas and pizza,drawn in a figure with sodas measured along the horizontal axis.Moving downward along the indifference curve,the

Accepted Answer

A)  marginal utility per dollar for sodas must increase. 
B)  marginal utility per dollar for pizza must increase. 
C)  consumer remains indifferent among the different combinations of soda and pizza. 
D)  the level of total utility must change. 
E)  marginal rate of substitution is constant. 
A)  marginal utility per dollar for sodas must increase. 
B)  marginal utility per dollar for pizza must increase. 
C)  consumer remains indifferent among the different combinations of soda and pizza. 
D)  the level of total utility must change. 
E)  marginal rate of substitution is constant.

-The table above gives the utility Andy receives from different quantities of vanilla ice cream cones.Complete the table.

Utility is the

A point where the budget line is just touching an indifference curve at one point is

An increase in the price of a good

Reb earns $1,000 per week as a fishing guide in Texas.With this money he buys fishing lures and steaks.Lures cost $5 each,steaks cost $10 each.With this level of income,which consumption points are not possible?

Marginal utility is equal to which of the following?

You are studying with a friend,and your friend says "To maximize utility,a consumer must consume the combination of goods so that the marginal utility of good X equals the marginal utility of good Y." Explain whether your friend's statement is correct or incorrect.

-The table above shows Buffy's utility from wooden stakes and cloves of garlic.As Buffy uses more stakes,the marginal utility of a stake and as she uses more cloves of garlic,the marginal utility of a clove of garlic .

Suppose that Hank consumes only Mountain Dew and pizza.If Hank's total utility from all amounts of both Mountain Dew and pizza double from what they were before,then Hank's demand for

The figure above shows three budget lines. -Based on the figure above,which of the following would lead the consumer's budget line to shift from BL₀ to BL₂?

Suppose you have one point on a demand curve.To plot another point for this demand curve using a group of indifference curves,

Timmy makes $100 per week as a taxidermist.He spends all this income to buy pizza and hair gel.The price of a pizza is $10 and the price of a bottle of hair gel is $4.If Timmy buys 6 pizzas per week,how many bottles of gel can he purchase?

As more of a good is consumed,the marginal utility of an additional unit ,so consumers are willing to pay for an additional unit.

Box of doughnuts Homer's total utility 1 30 2 55 3 75 4 90 5 100 6 103 -The above table shows Homer's utility from boxes of doughnuts.If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes,his

If the price of a good rises and the consumer's budget remains the same,what happens to the consumer's consumption possibilities?

If a consumer obtains 20 units of utility for the first unit consumed,10 for the second,and 5 for the third,what is the total utility of consuming three units?

The price of coffee increases because of low crop yields.If the consumer's utility schedule for coffee remains constant,we can predict that coffee consumption

One reason why the price of diamonds is so high is because the

Brenda's marginal utility per dollar from the second hamburger is 20.Her marginal utility from the third hamburger would be

-Consider an indifference curve for sodas and pizza,drawn in a figure with sodas measured along the horizontal axis.Moving downward along the indifference curve,the

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

Exam 13: Consumer Choice and Demand

-The table above gives the utility Andy receives from different quantities of vanilla ice cream cones.Complete the table.

Utility is the

A point where the budget line is just touching an indifference curve at one point is

An increase in the price of a good

Reb earns $1,000 per week as a fishing guide in Texas.With this money he buys fishing lures and steaks.Lures cost $5 each,steaks cost $10 each.With this level of income,which consumption points are not possible?

Marginal utility is equal to which of the following?

You are studying with a friend,and your friend says "To maximize utility,a consumer must consume the combination of goods so that the marginal utility of good X equals the marginal utility of good Y." Explain whether your friend's statement is correct or incorrect.

-The table above shows Buffy's utility from wooden stakes and cloves of garlic.As Buffy uses more stakes,the marginal utility of a stake ________ and as she uses more cloves of garlic,the marginal utility of a clove of garlic ________.

Suppose that Hank consumes only Mountain Dew and pizza.If Hank's total utility from all amounts of both Mountain Dew and pizza double from what they were before,then Hank's demand for

The figure above shows three budget lines. -Based on the figure above,which of the following would lead the consumer's budget line to shift from BL₀ to BL₂?

Suppose you have one point on a demand curve.To plot another point for this demand curve using a group of indifference curves,

Timmy makes $100 per week as a taxidermist.He spends all this income to buy pizza and hair gel.The price of a pizza is $10 and the price of a bottle of hair gel is $4.If Timmy buys 6 pizzas per week,how many bottles of gel can he purchase?

As more of a good is consumed,the marginal utility of an additional unit ________,so consumers are willing to pay ________ for an additional unit.

Box of doughnuts Homer's total utility 1 30 2 55 3 75 4 90 5 100 6 103 -The above table shows Homer's utility from boxes of doughnuts.If Homer decreases his consumption of doughnuts from 4 boxes to 3 boxes,his

If the price of a good rises and the consumer's budget remains the same,what happens to the consumer's consumption possibilities?

If a consumer obtains 20 units of utility for the first unit consumed,10 for the second,and 5 for the third,what is the total utility of consuming three units?

The price of coffee increases because of low crop yields.If the consumer's utility schedule for coffee remains constant,we can predict that coffee consumption

One reason why the price of diamonds is so high is because the

Brenda's marginal utility per dollar from the second hamburger is 20.Her marginal utility from the third hamburger would be

-Consider an indifference curve for sodas and pizza,drawn in a figure with sodas measured along the horizontal axis.Moving downward along the indifference curve,the

Getting Started

The U.S.and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Taxes

Global Markets in Action

Externalities

Public Goods and Common Resources

Markets with Private Information

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Markets for Factors of Production

Economic Inequality

Filters

-The table above shows Buffy's utility from wooden stakes and cloves of garlic.As Buffy uses more stakes,the marginal utility of a stake and as she uses more cloves of garlic,the marginal utility of a clove of garlic .

As more of a good is consumed,the marginal utility of an additional unit ,so consumers are willing to pay for an additional unit.