Question 1

-The above table shows Homer's total utility from boxes of doughnuts.As Homer's consumption of doughnuts increases,

Accepted Answer

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

Question 2

Sushi costs $3 per piece.Cynthia's total utility after eating one piece is 30 and her total utility after eating 2 pieces is 51,so her marginal utility from the second piece is

Accepted Answer

A)  17. 
B)  10. 
C)  51. 
D)  7. 
E)  21. 
A)  17. 
B)  10. 
C)  51. 
D)  7. 
E)  21.

Question 3

Why does the paradox of value between diamonds and water arise?

Accepted Answer

A)  because water has a low price and a low total utility, while diamonds have a high price and a high total utility 
B)  because water has a low price and a low marginal utility, while diamonds have a high price and a high marginal utility 
C)  because necessities like water are higher priced than luxuries like diamonds 
D)  because diamonds have a higher value to people even though water is essential to life 
E)  because water has a low price and a low total utility, while diamonds have a high price but also a low total utility 
A)  because water has a low price and a low total utility, while diamonds have a high price and a high total utility 
B)  because water has a low price and a low marginal utility, while diamonds have a high price and a high marginal utility 
C)  because necessities like water are higher priced than luxuries like diamonds 
D)  because diamonds have a higher value to people even though water is essential to life 
E)  because water has a low price and a low total utility, while diamonds have a high price but also a low total utility

Question 4

-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 are 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 are correct.

Question 5

Total utility ________ as a person consumes more of one good and marginal utility ________.

Accepted Answer

A)  increases; increases 
B)  increases; decreases 
C)  remains constant; decreases 
D)  fluctuates; decreases 
E)  decreases; increases 
A)  increases; increases 
B)  increases; decreases 
C)  remains constant; decreases 
D)  fluctuates; decreases 
E)  decreases; increases

Question 6

Ricardo likes to rent videos and attend concerts.The videos cost $4 and the concerts cost $40.Ricardo's marginal utility from the last video is 20 units.Ricardo is maximizing his utility.What is his marginal utility from the last concert he attended?

Accepted Answer

The marginal utility from his last conce

Question 7

If Joan consumes 1 dinner roll,she has total utility of 15; if she consumes 2,she has total utility of 27; if she consumes 3,she has total utility of 37; and if she consumes 4,she has total utility of 45.What is the marginal utility of the fourth dinner roll consumed?

Accepted Answer

A)  124 units of utility 
B)  45 units of utility 
C)  11.25 units of utility 
D)  8 units of utility 
E)  37 units of utility 
A)  124 units of utility 
B)  45 units of utility 
C)  11.25 units of utility 
D)  8 units of utility 
E)  37 units of utility

Question 8

Suppose you have a $20 budget per week,the price of soda is $1 per bottle,and the price of pizza is $4 per slice.In the above below,draw a budget line for soda and pizza,placing soda on the horizontal axis.Correctly label the axes.

Accepted Answer

@#IMG-DLM& The budget line is

Question 9

To derive a demand curve using the indifference curve model,you must change the

Accepted Answer

A)  consumer's preferences. 
B)  consumer's income. 
C)  price of one good, holding the price of the other good and income constant. 
D)  price of both goods simultaneously but by different amounts. 
E)  price of both goods simultaneously but by the same percentage. 
A)  consumer's preferences. 
B)  consumer's income. 
C)  price of one good, holding the price of the other good and income constant. 
D)  price of both goods simultaneously but by different amounts. 
E)  price of both goods simultaneously but by the same percentage.

Question 10

If one of the products a consumer buys rises in price,the consumer's budget line will

Accepted Answer

A)  shift farther away from the origin of the graph and not change its slope. 
B)  rotate inward, closer to the origin. 
C)  vanish. 
D)  undergo no change. 
E)  shift farther away from the origin of the graph and become steeper. 
A)  shift farther away from the origin of the graph and not change its slope. 
B)  rotate inward, closer to the origin. 
C)  vanish. 
D)  undergo no change. 
E)  shift farther away from the origin of the graph and become steeper.

Question 11

Explain the paradox of value.

Accepted Answer

The paradox of value questions why water

Question 12

If your budget increases,what is the effect on your budget line?

Accepted Answer

Your budget line shi

Question 13

Explain why total utility is maximized when the marginal utility per dollar from a good is equal across goods.

Accepted Answer

It is easiest to prove that total utilit

Question 14

-Sam's total utility for bananas is in the table above.Sam's marginal utility from the fourth banana is

Accepted Answer

A)  100 
B)  25 
C)  20 
D)  15 
E)  cannot be determined from the given information. 
A)  100 
B)  25 
C)  20 
D)  15 
E)  cannot be determined from the given information.

Question 15

-Tris is shopping for pants and belts.He has a budget of $100.The price of a pair of pants is $20 and the price of a belt is $5.His marginal utility schedules are above.What combination of pants and belts does Tris buy? Explain your answer.

Accepted Answer

Tris buys 4 pairs of pants and 4 belts b

Question 16

Suppose that Jen receives 400 units of utility from her last soda and 200 units of utility from her last slice of pizza.What can we conclude about Jen's choices if the price of a soda is $1 and the price of a slice of pizza is $2?

Accepted Answer

A)  Jen is maximizing utility because she buys more of the good providing the most utility. 
B)  Jen should buy more soda to maximize her utility. 
C)  Jen should buy more pizza to maximize her utility. 
D)  Jen needs to buy less soda and less pizza to maximize her utility. 
E)  None of the above answers is correct. 
A)  Jen is maximizing utility because she buys more of the good providing the most utility. 
B)  Jen should buy more soda to maximize her utility. 
C)  Jen should buy more pizza to maximize her utility. 
D)  Jen needs to buy less soda and less pizza to maximize her utility. 
E)  None of the above answers is correct.

Question 17

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 18

Why does gold,which is a relatively nonessential item,have a higher price than water,which is essential to life?

Accepted Answer

Gold has a high price and a high margina

Question 19

-Susan can watch movies or attend plays.The table above gives combinations of movies and plays that are on her budget line.If the price of a movie is $10,then her budget for movies and plays is

Accepted Answer

A)  $10 per month. 
B)  $50 per month. 
C)  $60 per month. 
D)  $120 per month. 
E)  unknown from the information. 
A)  $10 per month. 
B)  $50 per month. 
C)  $60 per month. 
D)  $120 per month. 
E)  unknown from the information.

Question 20

-Which of the above figures reflects an increase in the consumer's budget?

Accepted Answer

A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Both Figure A and Figure D 
A)  Figure A 
B)  Figure B 
C)  Figure C 
D)  Figure D 
E)  Both Figure A and Figure D

-The above table shows Homer's total utility from boxes of doughnuts.As Homer's consumption of doughnuts increases,

Sushi costs $3 per piece.Cynthia's total utility after eating one piece is 30 and her total utility after eating 2 pieces is 51,so her marginal utility from the second piece is

Why does the paradox of value between diamonds and water arise?

-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

Total utility as a person consumes more of one good and marginal utility .

Ricardo likes to rent videos and attend concerts.The videos cost $4 and the concerts cost $40.Ricardo's marginal utility from the last video is 20 units.Ricardo is maximizing his utility.What is his marginal utility from the last concert he attended?

If Joan consumes 1 dinner roll,she has total utility of 15; if she consumes 2,she has total utility of 27; if she consumes 3,she has total utility of 37; and if she consumes 4,she has total utility of 45.What is the marginal utility of the fourth dinner roll consumed?

Suppose you have a $20 budget per week,the price of soda is $1 per bottle,and the price of pizza is $4 per slice.In the above below,draw a budget line for soda and pizza,placing soda on the horizontal axis.Correctly label the axes.

To derive a demand curve using the indifference curve model,you must change the

If one of the products a consumer buys rises in price,the consumer's budget line will

Explain the paradox of value.

If your budget increases,what is the effect on your budget line?

Explain why total utility is maximized when the marginal utility per dollar from a good is equal across goods.

-Sam's total utility for bananas is in the table above.Sam's marginal utility from the fourth banana is

-Tris is shopping for pants and belts.He has a budget of $100.The price of a pair of pants is $20 and the price of a belt is $5.His marginal utility schedules are above.What combination of pants and belts does Tris buy? Explain your answer.

Suppose that Jen receives 400 units of utility from her last soda and 200 units of utility from her last slice of pizza.What can we conclude about Jen's choices if the price of a soda is $1 and the price of a slice of pizza is $2?

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.

Why does gold,which is a relatively nonessential item,have a higher price than water,which is essential to life?

-Susan can watch movies or attend plays.The table above gives combinations of movies and plays that are on her budget line.If the price of a movie is $10,then her budget for movies and plays is

-Which of the above figures reflects an increase in the consumer's budget?

Getting Started

The Usand 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 above table shows Homer's total utility from boxes of doughnuts.As Homer's consumption of doughnuts increases,

Sushi costs $3 per piece.Cynthia's total utility after eating one piece is 30 and her total utility after eating 2 pieces is 51,so her marginal utility from the second piece is

Why does the paradox of value between diamonds and water arise?

-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

Total utility ________ as a person consumes more of one good and marginal utility ________.

Ricardo likes to rent videos and attend concerts.The videos cost $4 and the concerts cost $40.Ricardo's marginal utility from the last video is 20 units.Ricardo is maximizing his utility.What is his marginal utility from the last concert he attended?

If Joan consumes 1 dinner roll,she has total utility of 15; if she consumes 2,she has total utility of 27; if she consumes 3,she has total utility of 37; and if she consumes 4,she has total utility of 45.What is the marginal utility of the fourth dinner roll consumed?

Suppose you have a $20 budget per week,the price of soda is $1 per bottle,and the price of pizza is $4 per slice.In the above below,draw a budget line for soda and pizza,placing soda on the horizontal axis.Correctly label the axes.

To derive a demand curve using the indifference curve model,you must change the

If one of the products a consumer buys rises in price,the consumer's budget line will

Explain the paradox of value.

If your budget increases,what is the effect on your budget line?

Explain why total utility is maximized when the marginal utility per dollar from a good is equal across goods.

-Sam's total utility for bananas is in the table above.Sam's marginal utility from the fourth banana is

-Tris is shopping for pants and belts.He has a budget of $100.The price of a pair of pants is $20 and the price of a belt is $5.His marginal utility schedules are above.What combination of pants and belts does Tris buy? Explain your answer.

Suppose that Jen receives 400 units of utility from her last soda and 200 units of utility from her last slice of pizza.What can we conclude about Jen's choices if the price of a soda is $1 and the price of a slice of pizza is $2?

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.

Why does gold,which is a relatively nonessential item,have a higher price than water,which is essential to life?

-Susan can watch movies or attend plays.The table above gives combinations of movies and plays that are on her budget line.If the price of a movie is $10,then her budget for movies and plays is

-Which of the above figures reflects an increase in the consumer's budget?

Getting Started

The Usand 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

Total utility as a person consumes more of one good and marginal utility .