Exam 10: Consumer Choice and Behavioral Economics

Economists do not think it is possible to compare the relative utility that two people get from consuming an additional unit of a particular good.

The order of the letters along the rows of computer keyboards could be changed to allow users to type faster,but this would inconvenience the vast majority of people who learned to type with the current keyboard layout.The costs of switching to a new layout make this change unlikely.This is an example of

The income effect due to a price decrease will result in an increase in the quantity demanded for

Marv Pilson has $50 worth of groceries in a shopping cart at his local Shop 'n Save.Assume that the marginal utility per dollar of the liter bottles of soft drink in Marv's cart equals 50.The marginal utility per dollar of the boxes of cereal in Marv's cart equals 20.Marv has only $50 to spend,but has not yet paid for his groceries.How can Marv increase his total utility without spending more than $50?

During the 2011 Super Bowl,Best Buy ran a commercial featuring Justin Bieber and Ozzy Osbourne.If the endorsements of Justin Bieber and Ozzy Osbourne resulted in a subsequent increase in sales at Best Buy,this would be an example of ________ on decision making.

Alan Krueger conducted a survey of fans at the 2001 Super Bowl who purchased tickets to the game for $325 or $400.Krueger found that (a)94 percent of those surveyed would not have paid $3,000 for their tickets,and (b)92 percent of those surveyed would not have sold their tickets for $3,000.These results are an example of

Which of the following is held constant along an indifference curve?

Table 10-6 Table 10-6 shows Antonio's utility from beer and pizza. -Refer to Table 10-6.What is Antonio's marginal utility from consuming the fifth beer?

The income effect results in consumers increasing the quantity of normal goods demanded when the price falls.

Figure 10-5 -Refer to Figure 10-5.If the consumer has $240 to spend on DVDs and CDs,what is the price of a CD if the budget constraint is BC2?

Alan Krueger conducted a survey of fans at the 2001 Super Bowl who purchased tickets to the game for $325 or $400.Krueger found that (a)94 percent of those surveyed would not have paid $3,000 for their tickets,and (b)92 percent of those surveyed would not have sold their tickets for $3,000.These results are an example of

Terence has $50 per week to spend on Subway sandwiches and milkshakes.The price of a Subway sandwich is $5 and the price of a milkshake is $4.He buys 6 sandwiches and 5 milkshakes.The marginal utility of the 6th sandwich = 25 and the marginal utility of the 5th milkshake = 24.Which of the following is true?

Economists assume people's tastes are identical.

Which of the following is a common mistake made by consumers?