Exam 22: Consumer Preferences and Consumer Choice

Max consumes only yogurt and almonds,and he is on his highest possible indifference curve.Bundle A (4 yogurts and 2 almonds)and bundle B (3 yogurts and 3 almonds)are on this indifference curve.Between points A and B,what is Max's marginal rate of substitution of yogurt for almonds?

(Multiple Choice)

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Question 21

Because of diminishing marginal utility,indifference curves are convex to the origin.

(True/False)

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Question 22

Use the following to answer question: -(Figure: Consumer Equilibrium III)Use Figure Consumer Equilibrium III.Given the figure,which of the following is TRUE?

(Multiple Choice)

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Question 23

(Scenario: E-Books and Sports Tickets)Read the scenario E-Books and Sports Tickets.Suppose Phillip discovers that if he spends all of his money on sports tickets,he can buy more sports tickets than he could previously because something changed.This is a result of a(n)_ in the price of _. Scenario: E-Books and Sports Tickets Phillip has an income of $300 per month,which he uses to purchase two goods,e-books and sports tickets.Each e-book costs $10,and each ticket costs $15.

(Multiple Choice)

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Question 24

One point on an indifference curve that displays a diminishing marginal rate of substitution between apples and oranges is 10 apples and 2 oranges;another is 8 apples and 4 oranges.Which of the following combinations of apples and oranges could also lie on this indifference curve?

(Multiple Choice)

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Question 25

Combinations of two goods that yield equal levels of utility are shown on a(n)_____ curve.

(Multiple Choice)

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Question 26

Ellen consumes goods X and Y.As she consumes less X,she must be compensated with additional units of Y,and her marginal rate of substitution of X for Y decreases as she consumes more Y.This means that goods X and Y are:

(Multiple Choice)

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Question 27

Use the following to answer question: -(Figure: Consumer Equilibrium III)Use Figure Consumer Equilibrium III.Kurt would maximize his utility at point _ with the consumption of _.

(Multiple Choice)

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Question 28

Miguel eats only burgers with onion rings.Miguel's indifference curve between burgers and onion rings must be a straight line.

(True/False)

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Question 29

Janella consumes only bananas and passion fruit.It is not possible for Janella's indifference curves to cross one another at any point.

(True/False)

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Question 30

Use the following to answer question: -(Figure: Kristin's Budget Line)Use Figure Kristin's Budget Line.The price of a cup of cappuccino is $3,and the price of an apple is $1.Suppose Kristin initially consumes 10 cups of cappuccino and 30 apples.Then the price of apples increases to $3 each and the price of cappuccino remains unchanged.As a result of this price change,Kristin's optimal consumption bundle is now 9 cups of cappuccino and 11 apples.If Kristin's income could be adjusted so that she could maintain her initial level of utility after the price change,she would consume more cappuccino and more apples.This reflects:

(Multiple Choice)

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Question 31

Use the following to answer question: -(Figure: Harold's Indifference Curves)Use Figure Harold's Indifference Curves.If the price of cheese is $2 per pound and Harold has $10 to spend on bread and cheese,Harold _ his consumption of cheese as the price of bread rises from $1 per loaf to $2 per loaf,indicating that bread and cheese are _.

(Multiple Choice)

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Question 32

For some people,coffee and milk are perfect complements.Their indifference curves are:

(Multiple Choice)

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Question 33

If Ian's indifference curve between guitars and Cadillacs is shaped like a right angle,then he considers the two goods perfect complements.

(True/False)

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Question 34

Use the following to answer question: -(Figure: Consumer Equilibrium III)Use Figure Consumer Equilibrium III.Kurt consumes at point C.If income remains unchanged,Kurt could gain more utility by choosing point:

(Multiple Choice)

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Question 35

Higher total utility is represented by _____ indifference curve.

(Multiple Choice)

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Question 36

Use the following to answer question: -(Figure: Indifference Curve Map I)Use Figure Indifference Curve Map I.It shows that:

(Multiple Choice)

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Question 37

Use the following to answer question: -(Table: Bundles of X and Y)Use Table Bundles of X and Y.According to the table:

(Multiple Choice)

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Question 38

Use the following to answer question: -(Figure: Indifference Curves and Consumption Bundles)Use Figure Indifference Curves and Consumption Bundles.In the figure,the initial optimum is at a.The price of hot dogs now increases.The change in hot dog consumption due to the substitution effect is:

(Multiple Choice)

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Question 39

Use the following to answer question: -(Figure: Harold's Indifference Curves)Use Figure Harold's Indifference Curves.The price of cheese is $2 per pound and Harold has $10 to spend on bread and cheese.As the price of bread rises from $1 to $2 per loaf,his consumption of bread: change?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 135

Max consumes only yogurt and almonds,and he is on his highest possible indifference curve.Bundle A (4 yogurts and 2 almonds)and bundle B (3 yogurts and 3 almonds)are on this indifference curve.Between points A and B,what is Max's marginal rate of substitution of yogurt for almonds?

Because of diminishing marginal utility,indifference curves are convex to the origin.

Use the following to answer question: -(Figure: Consumer Equilibrium III)Use Figure Consumer Equilibrium III.Given the figure,which of the following is TRUE?

One point on an indifference curve that displays a diminishing marginal rate of substitution between apples and oranges is 10 apples and 2 oranges;another is 8 apples and 4 oranges.Which of the following combinations of apples and oranges could also lie on this indifference curve?

Combinations of two goods that yield equal levels of utility are shown on a(n)_____ curve.

Ellen consumes goods X and Y.As she consumes less X,she must be compensated with additional units of Y,and her marginal rate of substitution of X for Y decreases as she consumes more Y.This means that goods X and Y are:

Use the following to answer question: -(Figure: Consumer Equilibrium III)Use Figure Consumer Equilibrium III.Kurt would maximize his utility at point _ with the consumption of _.

Miguel eats only burgers with onion rings.Miguel's indifference curve between burgers and onion rings must be a straight line.

Janella consumes only bananas and passion fruit.It is not possible for Janella's indifference curves to cross one another at any point.

For some people,coffee and milk are perfect complements.Their indifference curves are:

If Ian's indifference curve between guitars and Cadillacs is shaped like a right angle,then he considers the two goods perfect complements.

Use the following to answer question: -(Figure: Consumer Equilibrium III)Use Figure Consumer Equilibrium III.Kurt consumes at point C.If income remains unchanged,Kurt could gain more utility by choosing point:

Higher total utility is represented by _____ indifference curve.

Use the following to answer question: -(Figure: Indifference Curve Map I)Use Figure Indifference Curve Map I.It shows that:

Use the following to answer question: -(Table: Bundles of X and Y)Use Table Bundles of X and Y.According to the table:

Use the following to answer question: -(Figure: Indifference Curves and Consumption Bundles)Use Figure Indifference Curves and Consumption Bundles.In the figure,the initial optimum is at a.The price of hot dogs now increases.The change in hot dog consumption due to the substitution effect is:

Use the following to answer question: -(Figure: Harold's Indifference Curves)Use Figure Harold's Indifference Curves.The price of cheese is $2 per pound and Harold has $10 to spend on bread and cheese.As the price of bread rises from $1 to $2 per loaf,his consumption of bread: change?

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Filters

Exam 22: Consumer Preferences and Consumer Choice

Max consumes only yogurt and almonds,and he is on his highest possible indifference curve.Bundle A (4 yogurts and 2 almonds)and bundle B (3 yogurts and 3 almonds)are on this indifference curve.Between points A and B,what is Max's marginal rate of substitution of yogurt for almonds?

Because of diminishing marginal utility,indifference curves are convex to the origin.

Use the following to answer question: -(Figure: Consumer Equilibrium III)Use Figure Consumer Equilibrium III.Given the figure,which of the following is TRUE?

One point on an indifference curve that displays a diminishing marginal rate of substitution between apples and oranges is 10 apples and 2 oranges;another is 8 apples and 4 oranges.Which of the following combinations of apples and oranges could also lie on this indifference curve?

Combinations of two goods that yield equal levels of utility are shown on a(n)_____ curve.

Ellen consumes goods X and Y.As she consumes less X,she must be compensated with additional units of Y,and her marginal rate of substitution of X for Y decreases as she consumes more Y.This means that goods X and Y are:

Use the following to answer question: -(Figure: Consumer Equilibrium III)Use Figure Consumer Equilibrium III.Kurt would maximize his utility at point _____ with the consumption of _____.

Miguel eats only burgers with onion rings.Miguel's indifference curve between burgers and onion rings must be a straight line.

Janella consumes only bananas and passion fruit.It is not possible for Janella's indifference curves to cross one another at any point.

For some people,coffee and milk are perfect complements.Their indifference curves are:

If Ian's indifference curve between guitars and Cadillacs is shaped like a right angle,then he considers the two goods perfect complements.

Use the following to answer question: -(Figure: Consumer Equilibrium III)Use Figure Consumer Equilibrium III.Kurt consumes at point C.If income remains unchanged,Kurt could gain more utility by choosing point:

Higher total utility is represented by _____ indifference curve.

Use the following to answer question: -(Figure: Indifference Curve Map I)Use Figure Indifference Curve Map I.It shows that:

Use the following to answer question: -(Table: Bundles of X and Y)Use Table Bundles of X and Y.According to the table:

Use the following to answer question: -(Figure: Indifference Curves and Consumption Bundles)Use Figure Indifference Curves and Consumption Bundles.In the figure,the initial optimum is at a.The price of hot dogs now increases.The change in hot dog consumption due to the substitution effect is:

Use the following to answer question: -(Figure: Harold's Indifference Curves)Use Figure Harold's Indifference Curves.The price of cheese is $2 per pound and Harold has $10 to spend on bread and cheese.As the price of bread rises from $1 to $2 per loaf,his consumption of bread: change?

First Principles

Economic Models: Trade-Offs and Trade

Consumer and Producer Surplus

Supply and Demand

Price Controls and Quotas: Meddling With Markets

Elasticity

Taxes

International Trade

Decision Making by Individuals and Firms

The Rational Consumer

Behind the Supply Curve: Inputs and Costs

Perfect Competition and the Supply Curve

Monopoly

Oligopoly

Monopolistic Competition and Product Differentiation

Externalities

Public Goods and Common Resources

The Economics of the Welfare State

Factor Markets and the Distribution of Income

Uncertainty, Risk, and Private Information

Graphs in Economics

Filters

Use the following to answer question: -(Figure: Consumer Equilibrium III)Use Figure Consumer Equilibrium III.Kurt would maximize his utility at point _ with the consumption of _.