Question 1

Bananas Apples  
-Total utility is the benefit received from consuming an extra unit of a good.

Accepted Answer

A) True 
 B)False

Question 2

-The table above gives Jane's total utility from magazines and CDs. What is the marginal utility of Jane's sixth magazine?

Accepted Answer

A)  80 units 
B)  60 units 
C)  36 units 
D)  15 units 
A)  80 units 
B)  60 units 
C)  36 units 
D)  15 units

Question 3

Apples Tacos  
-Keesha consumes only milkshakes and burgers. At her consumer equilibrium, which of the following is true when Keesha can buy any portion of a unit of a milkshake or burger?

Accepted Answer

A)  The marginal utility per dollar from a milkshake will exceed the marginal utility per dollar from a burger if she likes burgers more than milkshakes. 
B)  The marginal utility per dollar from a burger will exceed the marginal utility per dollar from a milkshake if she likes burgers more than milkshakes. 
C)  The marginal utility per dollar will be the same for each good. 
D)  The marginal utility will be the same for each good. 
A)  The marginal utility per dollar from a milkshake will exceed the marginal utility per dollar from a burger if she likes burgers more than milkshakes. 
B)  The marginal utility per dollar from a burger will exceed the marginal utility per dollar from a milkshake if she likes burgers more than milkshakes. 
C)  The marginal utility per dollar will be the same for each good. 
D)  The marginal utility will be the same for each good.

Question 4

Explain the concept of consumer equilibrium.

Accepted Answer

A consumer equilibrium is a situation in

Question 5

A consumer allocates his budget according to rules of utility maximization. What are the rules of utility maximization and how do they explain the paradox of value, which is that diamonds are expensive but useless, while water is inexpensive but essential?

Accepted Answer

The rules of utility maximization are to

Question 6

Magazines Chocolate bars  
-Katie has a choice of spending $6.00 for another hamburger, which has a marginal utility of 30, or $9.00 for another pizza. For her to choose the pizza, it would have to have a marginal utility of at least

Accepted Answer

A)  9. 
B)  30. 
C)  31. 
D)  46. 
A)  9. 
B)  30. 
C)  31. 
D)  46.

Question 7

Milkshakes Sodas  
-The table above shows Tom's total utility from milkshakes and sodas. Tom's total budget for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $.50 each. What quantity of milkshakes does Tom purchase at his consumer equilibrium?

Accepted Answer

A)  five 
B)  six 
C)  seven 
D)  eight 
A)  five 
B)  six 
C)  seven 
D)  eight

Question 8

At 37, actor Matthew McConaughey says he only needs "friends and family" to keep him happy and that he avoids "false drama" at all costs. How do you maintain that bod? "I don't really have a workout regimen I follow. I just live my life. My goal is to break a sweat each day." People June 25, 2007
Mr. McConaughey says he only needs friends and family and to break a sweat each day to keep him happy. The table above shows the total utility he gets from spending time with friends and family and breaking a sweat.
-Mr. McConaughey has the afternoon, 5 hours, to spend doing whatever he wants. How much time does Mr. McConaughey spend with his friends and family and how much time does he spend breaking a sweat to maximize his total utility?

Accepted Answer

A)  3 hours with friends and family and 2 hours breaking a sweat 
B)  2 hours with friends and family and 3 hours breaking a sweat 
C)  0 hours with friends and family and 5 hours breaking a sweat 
D)  3 hours with friends and family and 4 hours breaking a sweat 
A)  3 hours with friends and family and 2 hours breaking a sweat 
B)  2 hours with friends and family and 3 hours breaking a sweat 
C)  0 hours with friends and family and 5 hours breaking a sweat 
D)  3 hours with friends and family and 4 hours breaking a sweat

Question 9

Bianca consumes apples and bananas and is in consumer equilibrium. The marginal utility of the last apple is 10 and the marginal utility of the last banana is 20. If the price of an apple is $0.50, then what is the price of a banana?

Accepted Answer

A)  $0.10 
B)  $0.25 
C)  $0.50 
D)  $1.00 
A)  $0.10 
B)  $0.25 
C)  $0.50 
D)  $1.00

Question 10

Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound and bananas cost $1 per pound. The marginal utility is 24 for the last pound of mangos purchased and 10 for the last pound of bananas. To maximize his utility, Robinson should buy

Accepted Answer

A)  more mangos and fewer bananas. 
B)  more bananas and fewer mangos. 
C)  the present combination of goods. 
D)  only mangos. 
A)  more mangos and fewer bananas. 
B)  more bananas and fewer mangos. 
C)  the present combination of goods. 
D)  only mangos.

Question 11

-The above table shows Homer's utility from boxes of doughnuts. The marginal utility that Homer receives from the third box of doughnuts is equal to

Accepted Answer

A)  75. 
B)  25. 
C)  20. 
D)  3. 
A)  75. 
B)  25. 
C)  20. 
D)  3.

Question 12

Pam buys only thread and fabric, and she buys the quantities that maximize her utility. Her marginal utility from a spool of thread is 30 units and her marginal utility from a yard of fabric is 60 units. If the price of a spool of thread is $4, then you are sure that the price of a yard of fabric is ________.

Accepted Answer

A)  $4 
B)  $2 
C)  $8 
D)  $12 
A)  $4 
B)  $2 
C)  $8 
D)  $12

Question 13

Bananas Apples  
-The table above gives Sam's marginal utility schedule for bananas and apples. Sam's fruit budget is $10.
a) If bananas cost $1 per pound and apples cost $2 per bag, what is Sam's marginal utility per dollar for all quantities of both goods?
b) What is the utility maximizing combination of bananas and apples for Sam?
c) If the price of bananas increases to $2 per pound, how does Sam's marginal utility per dollar for bananas change?
d) At the banana price of $2 per pound, what is the new utility maximizing combination of bananas and apples for Sam?
e) List two points on Sam's demand curve for bananas.

Accepted Answer

Bananas Apples @#IMG-DLM& a) The table above has S

Question 14

A measure of all the satisfaction you receive from all the coffee that you consume is your

Accepted Answer

A)  marginal utility of coffee. 
B)  marginal utility per dollar spent on coffee. 
C)  total utility from coffee. 
D)  marginal utility per dollar spent on coffee when you are in your consumer equilibrium. 
A)  marginal utility of coffee. 
B)  marginal utility per dollar spent on coffee. 
C)  total utility from coffee. 
D)  marginal utility per dollar spent on coffee when you are in your consumer equilibrium.

Question 15

Pizza Pepsi  
-The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. The price of a slice of pizza is $2 and of a can of Pepsi is $1. Suppose Priscilla has $6 to spend. Which combination of pizza and Pepsi will maximize Priscilla's utility?

Accepted Answer

A)  3 slices of pizza 
B)  2 slices of pizza and 2 cans of Pepsi 
C)  3 cans of Pepsi and 1 slice of pizza 
D)  1 slice of pizza and 3 cans of Pepsi 
A)  3 slices of pizza 
B)  2 slices of pizza and 2 cans of Pepsi 
C)  3 cans of Pepsi and 1 slice of pizza 
D)  1 slice of pizza and 3 cans of Pepsi

Question 16

Joe consumes pizza and movies. He is currently spending his entire income and his marginal utility of pizza is 15 and his marginal utility of movies is 10. If the price of a pizza is $10 and the price of a movie is $5, then to maximize his utility Joe should

Accepted Answer

A)  increase consumption of pizza and decrease consumption of movies. 
B)  increase consumption of movies and decrease consumption of pizza. 
C)  not change his current bundle of movies and pizza. 
D)  increase consumption of both goods. 
A)  increase consumption of pizza and decrease consumption of movies. 
B)  increase consumption of movies and decrease consumption of pizza. 
C)  not change his current bundle of movies and pizza. 
D)  increase consumption of both goods.

Question 17

As Shana's consumption of tacos decreases, her

Accepted Answer

A)  marginal utility from tacos increases. 
B)  marginal utility from tacos decreases. 
C)  total utility from tacos increases. 
D)  both total and marginal utility from tacos decrease. 
A)  marginal utility from tacos increases. 
B)  marginal utility from tacos decreases. 
C)  total utility from tacos increases. 
D)  both total and marginal utility from tacos decrease.

Question 18

The marginal utility of a third skirt is

Accepted Answer

A)  three times the average utility of the three skirts. 
B)  three skirts times the price of a skirt. 
C)  the total utility of three skirts divided by three. 
D)  the change in total utility from the third skirt. 
A)  three times the average utility of the three skirts. 
B)  three skirts times the price of a skirt. 
C)  the total utility of three skirts divided by three. 
D)  the change in total utility from the third skirt.

Question 19

-Given the data in the above table, income of $13, a price of $1 for a bottle of water and $2 for a hamburger, what is the marginal utility per dollar spent on water and on hamburgers when the consumer is in consumer equilibrium?

Accepted Answer

A)  20 units of utility per dollar spent 
B)  10 units of utility per dollar spent 
C)  5 units of utility per dollar spent 
D)  1 unit of utility per dollar spent 
A)  20 units of utility per dollar spent 
B)  10 units of utility per dollar spent 
C)  5 units of utility per dollar spent 
D)  1 unit of utility per dollar spent

Question 20

Is "utility" another word for the cost we give up when we consume a good?

Accepted Answer

No, utility does not mean the

Exam 8: Utility and Demand

Bananas Apples -Total utility is the benefit received from consuming an extra unit of a good.

-The table above gives Jane's total utility from magazines and CDs. What is the marginal utility of Jane's sixth magazine?

Apples Tacos -Keesha consumes only milkshakes and burgers. At her consumer equilibrium, which of the following is true when Keesha can buy any portion of a unit of a milkshake or burger?

Explain the concept of consumer equilibrium.

A consumer allocates his budget according to rules of utility maximization. What are the rules of utility maximization and how do they explain the paradox of value, which is that diamonds are expensive but useless, while water is inexpensive but essential?

Magazines Chocolate bars -Katie has a choice of spending $6.00 for another hamburger, which has a marginal utility of 30, or $9.00 for another pizza. For her to choose the pizza, it would have to have a marginal utility of at least

Milkshakes Sodas -The table above shows Tom's total utility from milkshakes and sodas. Tom's total budget for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $.50 each. What quantity of milkshakes does Tom purchase at his consumer equilibrium?

Bianca consumes apples and bananas and is in consumer equilibrium. The marginal utility of the last apple is 10 and the marginal utility of the last banana is 20. If the price of an apple is $0.50, then what is the price of a banana?

Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound and bananas cost $1 per pound. The marginal utility is 24 for the last pound of mangos purchased and 10 for the last pound of bananas. To maximize his utility, Robinson should buy

-The above table shows Homer's utility from boxes of doughnuts. The marginal utility that Homer receives from the third box of doughnuts is equal to

A measure of all the satisfaction you receive from all the coffee that you consume is your

Pizza Pepsi -The above table shows Priscilla's marginal utility from the two goods she consumes, pizza and Pepsi. The price of a slice of pizza is $2 and of a can of Pepsi is $1. Suppose Priscilla has $6 to spend. Which combination of pizza and Pepsi will maximize Priscilla's utility?

Joe consumes pizza and movies. He is currently spending his entire income and his marginal utility of pizza is 15 and his marginal utility of movies is 10. If the price of a pizza is $10 and the price of a movie is $5, then to maximize his utility Joe should

As Shana's consumption of tacos decreases, her

The marginal utility of a third skirt is

-Given the data in the above table, income of $13, a price of $1 for a bottle of water and $2 for a hamburger, what is the marginal utility per dollar spent on water and on hamburgers when the consumer is in consumer equilibrium?

Is "utility" another word for the cost we give up when we consume a good?

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices and Public Goods

Externalities and the Environment

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Extension A: Review

Extension B: Review

Extension C: Review

Extension D: Review

Extension E: Review

Extension F: Review

Filters