Question 1

As Shaniq drinks additional cups of tea at breakfast, Shaniq's

Accepted Answer

A) marginal utility from tea decreases. 
B) total utility from tea increases. 
C) total utility from tea decreases. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct. 
A) marginal utility from tea decreases. 
B) total utility from tea increases. 
C) total utility from tea decreases. 
D) Both answers A and B are correct. 
E) Both answers B and C are correct.

Question 2

If a consumer has $30 to spend on apples and bananas, where on the apple axis would the consumer's budget line intersect if the price of apples is $3 a pound?

Accepted Answer

A) 30 pounds 
B) 10 pounds 
C) 3 pounds 
D) 0 pounds 
E) It is impossible to determine with the given information. 
A) 30 pounds 
B) 10 pounds 
C) 3 pounds 
D) 0 pounds 
E) It is impossible to determine with the given information.

Question 3

Any point above a given indifference curve ________ affordable and is ________ to any point on the indifference curve.

Accepted Answer

A) is not; inferior 
B) might or might not be; preferred 
C) is not; preferred 
D) might or might not be; inferior 
E) is; preferred 
A) is not; inferior 
B) might or might not be; preferred 
C) is not; preferred 
D) might or might not be; inferior 
E) is; preferred

Question 4

"Because the price of a diamond is much greater than the price of a gallon of water, the consumer surplus from diamonds is greater than the consumer surplus from water." Is the previous analysis correct? Explain your answer.

Accepted Answer

No, the analysis is incorrect.The parado

Question 5

"As Rob consumes more dates over the course of a day, it is likely that his marginal utility from date consumption will rise." Is the previous statement likely correct or incorrect?

Accepted Answer

The statement is incorrect.The

Question 6

You consume hamburgers and hot dogs.If the price of a hamburger increases while the price of a hot dog and your budget do not change, then your budget line will

Accepted Answer

A) not change because your budget hasn't changed. 
B) shift outward and not change its slope. 
C) rotate outward and change its slope. 
D) rotate inward and change its slope. 
E) shift inward and not change its slope 
A) not change because your budget hasn't changed. 
B) shift outward and not change its slope. 
C) rotate outward and change its slope. 
D) rotate inward and change its slope. 
E) shift inward and not change its slope

Question 7

-Give the data in the above table, what is the marginal utility of the second quart of ice cream?

Accepted Answer

A) 80 
B) 70 
C) 60 
D) 75 
E) 150 
A) 80 
B) 70 
C) 60 
D) 75 
E) 150

Question 8

-The figure above shows a consumer's budget line between sodas and DVD rentals.Point b represents an

Accepted Answer

A) affordable combination of sodas and DVDs that spends the entire budget. 
B) affordable combination of sodas and DVDs that does not spend the entire budget. 
C) unaffordable combination of sodas and DVDs. 
D) affordable combination of sodas and DVDs but whether it spends the entire budget cannot be determined from the figure. 
E) None of the above answers is correct. 
A) affordable combination of sodas and DVDs that spends the entire budget. 
B) affordable combination of sodas and DVDs that does not spend the entire budget. 
C) unaffordable combination of sodas and DVDs. 
D) affordable combination of sodas and DVDs but whether it spends the entire budget cannot be determined from the figure. 
E) None of the above answers is correct.

Question 9

"Water is very inexpensive.Thus the marginal and total utility of water is small." Analyze the previous statements.

Accepted Answer

Parts of the statement are true but a ke

Question 10

What is the "principle of diminishing marginal utility"?

Accepted Answer

As the consumption of a good or service

Question 11

Is "utility" another word for the cost we give up when we consume a good?

Accepted Answer

No, utility does not mean the

Question 12

If Mark's marginal utility per dollar from the last taco is 15 and his marginal utility per dollar from the last burrito is 20 units, what should Mark do to increase his total utility?

Accepted Answer

Mark should buy more burritos and fewer

Question 13

If the slope of the budget line changes, there must have been

Accepted Answer

A) a change in the consumer's preferences. 
B) an increase in the consumer's income. 
C) a change in the price of at least one good. 
D) a change in the price of both goods. 
E) None of these could cause a change in the slope of the budget line. 
A) a change in the consumer's preferences. 
B) an increase in the consumer's income. 
C) a change in the price of at least one good. 
D) a change in the price of both goods. 
E) None of these could cause a change in the slope of the budget line.

Question 14

An indifference curve shows

Accepted Answer

A) different combinations of two goods among which the consumer is indifferent. 
B) consumption possibilities that a consumer faces at different prices and income. 
C) affordable combinations of goods. 
D) the opportunity cost of one good relative to another. 
E) the relative price of one good relative to another. 
A) different combinations of two goods among which the consumer is indifferent. 
B) consumption possibilities that a consumer faces at different prices and income. 
C) affordable combinations of goods. 
D) the opportunity cost of one good relative to another. 
E) the relative price of one good relative to another.

Question 15

You can use marginal utility theory to find the demand curve by changing

Accepted Answer

A) only the price of one good. 
B) only income. 
C) the utility schedule. 
D) only the prices of both goods. 
E) income and the prices of both goods. 
A) only the price of one good. 
B) only income. 
C) the utility schedule. 
D) only the prices of both goods. 
E) income and the prices of both goods.

Question 16

Sherry is on vacation and wants to bring souvenirs home to family and friends.Her souvenir budget is $100, and she can choose between T-shirts, which cost $20 each, and key chains, which cost $5 each.
a∙Draw a graph of Sherry's budget line in the figure below.
   
b∙What is the slope of Sherry's budget line? How does that slope represent an opportunity cost? Suppose that Sherry now finds a store where T-shirts are on sale for $10 each.(Key chains still cost $5 each).
c∙Draw the new budget line in the figure.
d∙What is the slope of the new budget line? How has the opportunity cost changed?

Accepted Answer

@#IMG-DLM& 
a∙The budget line is in the figure abo

Question 17

The magnitude of the slope of an indifference curve at a particular point measures the

Accepted Answer

A) total utility. 
B) marginal utility. 
C) marginal rate of substitution. 
D) total rate of substitution. 
E) demand. 
A) total utility. 
B) marginal utility. 
C) marginal rate of substitution. 
D) total rate of substitution. 
E) demand.

Question 18

Suppose the quantity of burgers is on the horizontal axis and the quantity of bags of French fries is measured on the vertical axis and Carol's indifference curves are drawn in the graph.As Carol consumes more

Accepted Answer

A) burgers, moving along an indifference curve her marginal rate of substitution for burgers decreases. 
B) bags of fries, moving along an indifference curve her marginal rate of substitution for burgers decreases. 
C) burgers and bags of fries moving along an indifference curve, Carol reaches her best affordable point. 
D) of either good, moving along an indifference curve her marginal rate of substitution for burgers increases. 
E) of both goods, moving from one indifference curve to a higher indifference curve, her marginal rate of substitution definitely does not change. 
A) burgers, moving along an indifference curve her marginal rate of substitution for burgers decreases. 
B) bags of fries, moving along an indifference curve her marginal rate of substitution for burgers decreases. 
C) burgers and bags of fries moving along an indifference curve, Carol reaches her best affordable point. 
D) of either good, moving along an indifference curve her marginal rate of substitution for burgers increases. 
E) of both goods, moving from one indifference curve to a higher indifference curve, her marginal rate of substitution definitely does not change.

Question 19

-The table above has different combinations of hamburgers and hot dogs that Alex can buy.After labeling the axes, graph Alex's budget line in the figure, putting hot dogs on the x-axis.
   
a∙Alex's income is $8 per day.What is the price of a hot dog? Of a hamburger?
b∙What is the slope of the budget line?

Accepted Answer

@#IMG-DLM& 
The figure above has Alex's

Question 20

At her best affordable point, Kris
I∙is on her budget line.
Ii∙is on the highest attainable indifference curve.
Iii∙has a marginal rate of substitution equal to the relative price of the goods.

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) i and ii 
E) i, ii, and iii 
A) i only 
B) ii only 
C) iii only 
D) i and ii 
E) i, ii, and iii

As Shaniq drinks additional cups of tea at breakfast, Shaniq's

If a consumer has $30 to spend on apples and bananas, where on the apple axis would the consumer's budget line intersect if the price of apples is $3 a pound?

Any point above a given indifference curve affordable and is to any point on the indifference curve.

"Because the price of a diamond is much greater than the price of a gallon of water, the consumer surplus from diamonds is greater than the consumer surplus from water." Is the previous analysis correct? Explain your answer.

"As Rob consumes more dates over the course of a day, it is likely that his marginal utility from date consumption will rise." Is the previous statement likely correct or incorrect?

You consume hamburgers and hot dogs.If the price of a hamburger increases while the price of a hot dog and your budget do not change, then your budget line will

-Give the data in the above table, what is the marginal utility of the second quart of ice cream?

-The figure above shows a consumer's budget line between sodas and DVD rentals.Point b represents an

"Water is very inexpensive.Thus the marginal and total utility of water is small." Analyze the previous statements.

What is the "principle of diminishing marginal utility"?

Is "utility" another word for the cost we give up when we consume a good?

If Mark's marginal utility per dollar from the last taco is 15 and his marginal utility per dollar from the last burrito is 20 units, what should Mark do to increase his total utility?

If the slope of the budget line changes, there must have been

An indifference curve shows

You can use marginal utility theory to find the demand curve by changing

The magnitude of the slope of an indifference curve at a particular point measures the

Suppose the quantity of burgers is on the horizontal axis and the quantity of bags of French fries is measured on the vertical axis and Carol's indifference curves are drawn in the graph.As Carol consumes more

At her best affordable point, Kris I∙is on her budget line. Ii∙is on the highest attainable indifference curve. Iii∙has a marginal rate of substitution equal to the relative price of the goods.

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

As Shaniq drinks additional cups of tea at breakfast, Shaniq's

If a consumer has $30 to spend on apples and bananas, where on the apple axis would the consumer's budget line intersect if the price of apples is $3 a pound?

Any point above a given indifference curve ________ affordable and is ________ to any point on the indifference curve.

"Because the price of a diamond is much greater than the price of a gallon of water, the consumer surplus from diamonds is greater than the consumer surplus from water." Is the previous analysis correct? Explain your answer.

"As Rob consumes more dates over the course of a day, it is likely that his marginal utility from date consumption will rise." Is the previous statement likely correct or incorrect?

You consume hamburgers and hot dogs.If the price of a hamburger increases while the price of a hot dog and your budget do not change, then your budget line will

-Give the data in the above table, what is the marginal utility of the second quart of ice cream?

-The figure above shows a consumer's budget line between sodas and DVD rentals.Point b represents an

"Water is very inexpensive.Thus the marginal and total utility of water is small." Analyze the previous statements.

What is the "principle of diminishing marginal utility"?

Is "utility" another word for the cost we give up when we consume a good?

If Mark's marginal utility per dollar from the last taco is 15 and his marginal utility per dollar from the last burrito is 20 units, what should Mark do to increase his total utility?

If the slope of the budget line changes, there must have been

An indifference curve shows

You can use marginal utility theory to find the demand curve by changing

The magnitude of the slope of an indifference curve at a particular point measures the

Suppose the quantity of burgers is on the horizontal axis and the quantity of bags of French fries is measured on the vertical axis and Carol's indifference curves are drawn in the graph.As Carol consumes more

At her best affordable point, Kris I∙is on her budget line. Ii∙is on the highest attainable indifference curve. Iii∙has a marginal rate of substitution equal to the relative price of the goods.

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

Any point above a given indifference curve affordable and is to any point on the indifference curve.