Exam 20: Consumer Choice

If the quantity of hamburgers is measured along the horizontal axis and the quantity of movies is measured along the vertical axis, an increase in the price of a movie would be shown by

The fact that the price of diamonds is higher than the price of water

On a hot summer day, a construction worker enters a McDonald's fast-food restaurant. He orders the first Big Mac. He consumes it within 3 minutes. He then orders a second Big Mac and consumes it in 10 minutes. He eats only half of the third one in 18 minutes and throws away the rest. The store manager offers him the fourth for free. The construction worker says: "No thanks." For the construction worker described above, we can say that

The price of a can of soft drink is $1.25 and the marginal utility of the second can consumed is 10 utils. The marginal utility of the third donut is 4 utils. You should only consume the third donut if the price of the donut is less than or equal to

-Refer to the above table. At what quantity does diminishing marginal utility set in?

The diamond-water paradox illustrates the idea that ________ determines what consumers are willing to pay for a particular good.

Which of the following is NOT consistent with the law of diminishing marginal utility?

For any two goods, X and Y, if MU_X divided by P_X equals 2.5 and MU_Y divided by P_Y equals 4.0, then with given income and prices the consumer should

The real-income effect is likely to be greater when

Economists once believed utility could be measured. The philosophical school based on the thought known as utilitarianism was developed by the English philosopher

-In the above figure, budget line DF would swivel in to the left if

-Suppose the price of pizza is $2 and the consumer optimum is reached when MU/P = 3. Tom's preferences for pizza are shown in the above table. How many slices will Tom buy?

What is utility analysis? What is the goal of this analysis?

A consumer was at an optimum. She then discovers that the marginal utility per dollar spent on food is more than the marginal utility per dollar spent on gasoline. She knows then that

If a consumer concludes that the marginal utility of the last dollar spent on vegetables exceeds the marginal utility of the last dollar spent on junk food, he will respond by

Which of the following shows the feasible combinations of two goods that a consumer could afford given her money income?

The concept of utility is

A curve that shows a set of consumption alternatives that give the same level of satisfaction is

Typically, an individual takes only one newspaper from the bin because

The consumer optimum is found by using