Exam 10: Consumer Choice and Behavioral Economics

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

The slope of the indifference curve is referred to as

In their surveys of consumers,Daniel Kaheman,Jack Knetsch and Richard Thaler found that

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

Marge buys 5 CDs and 7 DVDs.The marginal utility of the 5th CD and the marginal utility of the 7th DVD are both equal to 30 utils.Can we say that this is the optimal combination of CDs and DVDs for Marge?

The word "util" has been used by economists in the past as an objective measure of utility.Today economists believe that

Many airlines have not reduced or eliminated fuel surcharges despite the price of oil dropping.A logical reason for this is that the decline in fuel prices ________ the supply of airline tickets while at the same time the demand for airline tickets ________,so airline ticket prices still increased.

Total utility is maximized in the consumption of two goods by

Figure 10-4 -Refer to Figure 10-4.Given the budget constraint in the diagram,which of the following statements is false?

If Paul decides to buy a $60 ticket to a Cirque du Soleil show rather than a $45 ticket for a Blue Man Group performance,we can conclude that

Which of the following is explained by the law of diminishing marginal utility?

Which of the following refers to the increase in the usefulness of a product as the number of consumers who use it increases?

In making decisions about what to consume,a person's goal is to

Harvey Miller owns a baseball that was hit for a home run by Ted Williams.Harvey,a long-time Boston Red Sox fan,recently refused to sell his baseball for $75,000 even though he would not have paid someone more than $10,000 for the baseball if he did not already own it.Harvey explained his decision not to sell the baseball by noting that: "Ted Williams was my hero.This baseball has a great deal of sentimental value for me." Which of the following can explain Harvey's behavior?

The income effect of an increase in the price of peaches is

All but one of the following have been suggested by some economists as possible consequences of path dependency and switching costs.Which of the following is not a possible consequence of path dependency and switching costs?

Which of the following statements describes economists' attitudes regarding the influence of social factors on the choices consumers make?

Figure 10-3 -Refer to Figure 10-3.What is the marginal rate of substitution between h and j?

Economists have used the ultimatum game and the dictator game in experiments designed to determine

The amount of income a consumer has to spend on goods and services is known as