Question 1

Neuroscientists have developed techniques to do the following:

Accepted Answer

A) map activity involved in the valuation of the benefits and costs of various actions,including a consumer's product choice. 
B) discover the ways to learn about the opportunity costs. 
C) learn how people react when they are better off. 
D) observe the responsiveness to discounts. 
A) map activity involved in the valuation of the benefits and costs of various actions,including a consumer's product choice. 
B) discover the ways to learn about the opportunity costs. 
C) learn how people react when they are better off. 
D) observe the responsiveness to discounts.

Question 2

Juan is consuming 3 sandwiches and 6 sodas.If a sandwich costs twice as much as a soda then:

Accepted Answer

A) Juan should buy more sodas. 
B) Juan should buy more sandwiches. 
C) Juan is maximizing his utility if he derives twice as much utility from the last soda as from the last sandwich. 
D) Juan is maximizing his utility if he derives twice as much utility from the last sandwich as from the last soda. 
A) Juan should buy more sodas. 
B) Juan should buy more sandwiches. 
C) Juan is maximizing his utility if he derives twice as much utility from the last soda as from the last sandwich. 
D) Juan is maximizing his utility if he derives twice as much utility from the last sandwich as from the last soda.

Question 3

If a decrease in consumer prices and a decrease of consumer's nominal income offset each other by the same amount,the consumer's real income is not changed.

Accepted Answer

A) True 
 B)False

Question 4

One explanation for the development of online music services is:

Accepted Answer

A) these services will help reduce the incidence of of piracy. 
B) consumers do not care about the price they pay for one song. 
C) consumers stopped purchasing CDs. 
D) the government mandated this market. 
A) these services will help reduce the incidence of of piracy. 
B) consumers do not care about the price they pay for one song. 
C) consumers stopped purchasing CDs. 
D) the government mandated this market.

Question 5

What is a budget line?

Accepted Answer

A budget line is the line conn

Question 6

The calibration of the regions of the brain involved in benefit valuation comes from the brain's NAcc system.

Accepted Answer

A) True 
 B)False

Question 7

Table 7.2
-Refer to Table 7.2.The marginal utility of the fourth slice of pie per day is:

Accepted Answer

A) 20. 
B) 75. 
C) 15. 
D) 3. 
A) 20. 
B) 75. 
C) 15. 
D) 3.

Question 8

A point on a demand curve shows the utility maximizing quantity at that price.

Accepted Answer

A) True 
 B)False

Question 9

At her current consumption level,Betty gets twice as much marginal utility from an additional bottle of soda as she does from an additional bottle of water.If she is maximizing her utility,and the price of soda is $2 per bottle then the price of a bottle of water must be:

Accepted Answer

A) $8.00. 
B) $1.00. 
C) $2.00. 
D) $4.00. 
A) $8.00. 
B) $1.00. 
C) $2.00. 
D) $4.00.

Question 10

-Refer to Figure 7.1.The ________ movie rental has a marginal utility of zero.

Accepted Answer

A) first 
B) second 
C) third 
D) fourth 
A) first 
B) second 
C) third 
D) fourth

Question 11

Present bias occurs because there is a match in the timing of benefits and costs.

Accepted Answer

A) True 
 B)False

Question 12

Suppose that Carolyn's current level of consumption,   /   = 18 and   /   = 10.Carolyn can increase her utility by increasing her consumption of good Y and reducing her consumption of good X.

Accepted Answer

A) True 
 B)False

Question 13

Kylie spends her income of $150 per week on two goods: movies (which cost $5 each)and books (which cost $10 each).At her current level of consumption,the marginal utility from the last movie consumed is 20 and the marginal utility from the last book consumed is 30.Is Kylie maximizing her utility? Why or why not? If not,what should Kylie do to achieve a higher level of utility?

Accepted Answer

No,she is not maximizing utility.She sho

Question 14

Table 7.2
-Refer to Table 7.2.The total utility of the five slices of pie per day is:

Accepted Answer

A) 95. 
B) 105. 
C) 85. 
D) 75. 
A) 95. 
B) 105. 
C) 85. 
D) 75.

Question 15

Ceteris paribus,if the prices of the goods a consumer purchases increase,then the consumer's real income:

Accepted Answer

A) decreases. 
B) increases. 
C) remains the same. 
D) might increase or decrease. 
A) decreases. 
B) increases. 
C) remains the same. 
D) might increase or decrease.

Question 16

What is the law of diminishing marginal utility?

Accepted Answer

The law of diminishing margina

Question 17

What is meant by utility?

Accepted Answer

Utility is a measure

Question 18

Cognitive processing is particularly important in making consumer decisions that involve many options.

Accepted Answer

A) True 
 B)False

Question 19

The law of diminishing marginal utility means that total utility must fall as more units of a good are consumed.

Accepted Answer

A) True 
 B)False

Question 20

People make different choices because they differ in ways that are relevant to consumer decision,which of the following are those ways?

Accepted Answer

A) strength of their gut feeling 
B) weakness of the activity in the NAcc 
C) cognitive weighting 
D) A and C are correct. 
A) strength of their gut feeling 
B) weakness of the activity in the NAcc 
C) cognitive weighting 
D) A and C are correct.

Neuroscientists have developed techniques to do the following:

Juan is consuming 3 sandwiches and 6 sodas.If a sandwich costs twice as much as a soda then:

If a decrease in consumer prices and a decrease of consumer's nominal income offset each other by the same amount,the consumer's real income is not changed.

One explanation for the development of online music services is:

What is a budget line?

The calibration of the regions of the brain involved in benefit valuation comes from the brain's NAcc system.

Table 7.2 -Refer to Table 7.2.The marginal utility of the fourth slice of pie per day is:

A point on a demand curve shows the utility maximizing quantity at that price.

At her current consumption level,Betty gets twice as much marginal utility from an additional bottle of soda as she does from an additional bottle of water.If she is maximizing her utility,and the price of soda is $2 per bottle then the price of a bottle of water must be:

-Refer to Figure 7.1.The ________ movie rental has a marginal utility of zero.

Present bias occurs because there is a match in the timing of benefits and costs.

Suppose that Carolyn's current level of consumption, / = 18 and / = 10.Carolyn can increase her utility by increasing her consumption of good Y and reducing her consumption of good X.

Table 7.2 -Refer to Table 7.2.The total utility of the five slices of pie per day is:

Ceteris paribus,if the prices of the goods a consumer purchases increase,then the consumer's real income:

What is the law of diminishing marginal utility?

What is meant by utility?

Cognitive processing is particularly important in making consumer decisions that involve many options.

The law of diminishing marginal utility means that total utility must fall as more units of a good are consumed.

People make different choices because they differ in ways that are relevant to consumer decision,which of the following are those ways?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 7: Consumer Choice: Utility Theory and Insights From Neuroscience

Neuroscientists have developed techniques to do the following:

Juan is consuming 3 sandwiches and 6 sodas.If a sandwich costs twice as much as a soda then:

If a decrease in consumer prices and a decrease of consumer's nominal income offset each other by the same amount,the consumer's real income is not changed.

One explanation for the development of online music services is:

What is a budget line?

The calibration of the regions of the brain involved in benefit valuation comes from the brain's NAcc system.

Table 7.2 -Refer to Table 7.2.The marginal utility of the fourth slice of pie per day is:

A point on a demand curve shows the utility maximizing quantity at that price.

At her current consumption level,Betty gets twice as much marginal utility from an additional bottle of soda as she does from an additional bottle of water.If she is maximizing her utility,and the price of soda is $2 per bottle then the price of a bottle of water must be:

-Refer to Figure 7.1.The ________ movie rental has a marginal utility of zero.

Present bias occurs because there is a match in the timing of benefits and costs.

Suppose that Carolyn's current level of consumption, / = 18 and / = 10.Carolyn can increase her utility by increasing her consumption of good Y and reducing her consumption of good X.

Table 7.2 -Refer to Table 7.2.The total utility of the five slices of pie per day is:

Ceteris paribus,if the prices of the goods a consumer purchases increase,then the consumer's real income:

What is the law of diminishing marginal utility?

What is meant by utility?

Cognitive processing is particularly important in making consumer decisions that involve many options.

The law of diminishing marginal utility means that total utility must fall as more units of a good are consumed.

People make different choices because they differ in ways that are relevant to consumer decision,which of the following are those ways?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters