Exam 6: Concumer Choice and Behavioural Economics

The substitution effect of a change in the price of cauliflower is the portion of the change in the quantity of cauliflower demanded that can be attributed to the change in the price of a substitute vegetable such as asparagus.

(True/False)

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Question 21

-Refer to Figure 6-7. If the consumer has $240 to spend on DVDs and CDs, what is the price of a DVD if the budget constraint is BC₁?

(Multiple Choice)

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(79)

Question 22

Suppose your marginal utility from consuming the 3rd slice of cake is zero; then your total utility from consuming cake is

(Multiple Choice)

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Question 23

Behavioural economics refers to the study of situations

(Multiple Choice)

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Question 24

Economists Gary Becker and Kevin Murphy are associated with which of the following?

(Multiple Choice)

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Question 25

The marginal utility per dollar that Harold Stratton receives from oranges is greater than the marginal utility per dollar Harold receives from pears. To maximise his utility, what should Harold do?

(Multiple Choice)

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(88)

Question 26

If Valerie purchases ankle socks at $5 and gets 25 units of marginal utility from the last unit, and bandanas at $3 and gets 12 units of marginal utility from the last bandana purchased, she

(Multiple Choice)

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(85)

Question 27

A common mistake made by consumers is the failure to take into account the monetary costs of their actions.

(True/False)

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Question 28

The iPod is a product without any significant network externalities.

(True/False)

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(88)

Question 29

What happens to the absolute value of marginal rate of substitution as you move down a convex (bowed toward the origin) indifference curve?

(Multiple Choice)

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Question 30

Some economists have argued that path dependency and switching costs can lead to market failure. Which of the following is an example of this argument?

(Multiple Choice)

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(88)

Question 31

-Refer to Figure 6-4. Suppose the price of pizza increases while the price of hamburger remains constant. Then, the consumer's

(Multiple Choice)

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(79)

Question 32

An item has utility for a consumer if it

(Multiple Choice)

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Question 33

The demand curve for an inferior good can never be downward sloping.

(True/False)

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Question 34

Consumers have to make trade-offs in deciding what to consume because

(Multiple Choice)

4.8/5

(77)

Question 35

Total utility is constant along a given indifference curve.

(True/False)

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Question 36

An advantage of Microsoft Windows is its compatibility with the widest range of hardware and software. The dominance of Windows is self-reinforcing: hardware and software manufacturers ensure that their products are compatible with Windows in order to have access to the large number of Windows users. Which principle best describes this scenario?

(Multiple Choice)

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Question 37

The observation that people tend to value something more highly when they own it than when they don't is called the

(Multiple Choice)

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(73)

Question 38

If by purchasing more apples and fewer oranges you increase your total utility, then apples must be cheaper than oranges.

(True/False)

4.7/5

(78)

Question 39

-Refer to Table 6-4. For steak and cheese and grilled chicken sandwiches, the table contains the values of the marginal utility (MU) and marginal utility per dollar (MU/P) for Mabel Jarvis. Mabel has $14 to spend on steak and cheese and grilled chicken sandwiches. Which of the following statements is true?

(Multiple Choice)

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(70)

Question 40

Showing 21 - 40 of 254

The substitution effect of a change in the price of cauliflower is the portion of the change in the quantity of cauliflower demanded that can be attributed to the change in the price of a substitute vegetable such as asparagus.

-Refer to Figure 6-7. If the consumer has $240 to spend on DVDs and CDs, what is the price of a DVD if the budget constraint is BC₁?

Suppose your marginal utility from consuming the 3rd slice of cake is zero; then your total utility from consuming cake is

Behavioural economics refers to the study of situations

Economists Gary Becker and Kevin Murphy are associated with which of the following?

The marginal utility per dollar that Harold Stratton receives from oranges is greater than the marginal utility per dollar Harold receives from pears. To maximise his utility, what should Harold do?

If Valerie purchases ankle socks at $5 and gets 25 units of marginal utility from the last unit, and bandanas at $3 and gets 12 units of marginal utility from the last bandana purchased, she

A common mistake made by consumers is the failure to take into account the monetary costs of their actions.

The iPod is a product without any significant network externalities.

What happens to the absolute value of marginal rate of substitution as you move down a convex (bowed toward the origin) indifference curve?

Some economists have argued that path dependency and switching costs can lead to market failure. Which of the following is an example of this argument?

-Refer to Figure 6-4. Suppose the price of pizza increases while the price of hamburger remains constant. Then, the consumer's

An item has utility for a consumer if it

The demand curve for an inferior good can never be downward sloping.

Consumers have to make trade-offs in deciding what to consume because

Total utility is constant along a given indifference curve.

The observation that people tend to value something more highly when they own it than when they don't is called the

If by purchasing more apples and fewer oranges you increase your total utility, then apples must be cheaper than oranges.

Economics Foundations and Models

Choices and Trade - Offs in the Market

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

Exam 6: Concumer Choice and Behavioural Economics

The substitution effect of a change in the price of cauliflower is the portion of the change in the quantity of cauliflower demanded that can be attributed to the change in the price of a substitute vegetable such as asparagus.

-Refer to Figure 6-7. If the consumer has $240 to spend on DVDs and CDs, what is the price of a DVD if the budget constraint is BC1?

Suppose your marginal utility from consuming the 3rd slice of cake is zero; then your total utility from consuming cake is

Behavioural economics refers to the study of situations

Economists Gary Becker and Kevin Murphy are associated with which of the following?

The marginal utility per dollar that Harold Stratton receives from oranges is greater than the marginal utility per dollar Harold receives from pears. To maximise his utility, what should Harold do?

If Valerie purchases ankle socks at $5 and gets 25 units of marginal utility from the last unit, and bandanas at $3 and gets 12 units of marginal utility from the last bandana purchased, she

A common mistake made by consumers is the failure to take into account the monetary costs of their actions.

The iPod is a product without any significant network externalities.

What happens to the absolute value of marginal rate of substitution as you move down a convex (bowed toward the origin) indifference curve?

Some economists have argued that path dependency and switching costs can lead to market failure. Which of the following is an example of this argument?

-Refer to Figure 6-4. Suppose the price of pizza increases while the price of hamburger remains constant. Then, the consumer's

An item has utility for a consumer if it

The demand curve for an inferior good can never be downward sloping.

Consumers have to make trade-offs in deciding what to consume because

Total utility is constant along a given indifference curve.

The observation that people tend to value something more highly when they own it than when they don't is called the

If by purchasing more apples and fewer oranges you increase your total utility, then apples must be cheaper than oranges.

Economics Foundations and Models

Choices and Trade - Offs in the Market

Where Prices Come Frome : The Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency , Government Price Setting and Taxes

Technology , Production and Costs

Firms in Perfectly Compitive Markets

Monopoly Markets

Monopolistic Competition : The Competitive Model in More Realistic Setting

Oligopoly : Firms in Less Competitve Markets

The Market for Labour and Other Factors of Production

International Trade

Government Intervention in the Market

Externalities , Environmental Policy and Public Goods

The Distribution of Income and Social Policy

Filters

-Refer to Figure 6-7. If the consumer has $240 to spend on DVDs and CDs, what is the price of a DVD if the budget constraint is BC₁?