A) the total amount of a good or service a consumer consumes. B) social welfare. C) the usefulness of a good. D) an indicator of individual preferences. E) how well something works for its intended purpose. A) the total amount of a good or service a consumer consumes. B) social welfare. C) the usefulness of a good. D) an indicator of individual preferences. E) how well something works for its intended purpose.

Exam 5: The Demand Curve and the Behavior of Consumers

To maximize utility, the amount that a consumer is willing to pay for one more unit of a good must equal the marginal benefit of that unit of good.

(True/False)

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Question 21

When there is an increase in the consumption of one good and a decrease in the consumption of another, utility

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Question 22

As more of a good is consumed by an individual,

(Multiple Choice)

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Question 23

Suppose music CDs and movie DVDs give the same utility to Jane, and she has $200 to spend on music CDs and movie DVDs. The price of a movie DVD is $15, and the price of a music CD is $10. Which of the following is the most affordable bundle for maximizing her utility?

(Multiple Choice)

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Question 24

An increase in the income of a family raises the slope of the family's budget constraint.

(True/False)

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Question 25

If price and marginal benefit are equal for an individual, and preferences and income do not change, the individual can be induced to buy more of a good only by

(Multiple Choice)

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Question 26

Consumer surplus applies only to market demand, not individual demand.

(True/False)

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Question 27

Utility is

(Multiple Choice)

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Question 28

The additional satisfaction gained from consuming one more unit of a product or service is

(Multiple Choice)

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Question 29

Define consumer surplus. Does a consumer really get a surplus? Why or why not?

(Essay)

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Question 30

Consumer surplus measures the difference between what consumers are willing to pay and what they actually pay for a given quantity of a good.

(True/False)

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Question 31

Which of the following statements is true? The income effect of an increase in the price of iPads refers to the (A) reduction of income incurred by iPad producers. (B) decrease in the quantity demanded of iPads as buyers experience lower real incomes. (C) decrease in the quantity demanded of iPads as buyers experience lower nominal incomes.

(Essay)

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Question 32

When marginal utility is positive but decreasing, an increase in quantity decreases total utility.

(True/False)

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Question 33

The height of a demand curve represents the

(Multiple Choice)

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Question 34

Exhibit 5-8 -Refer to Exhibit 5-8. If Stephanie and Roger are the only consumers, at a price of $3, the total consumer surplus is

(Multiple Choice)

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Question 35

The budget constraint

(Multiple Choice)

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Question 36

Which of the following is false about the assumptions that economists make about utility?

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Question 37

After consuming five units of a good, the price that a consumer is willing to pay for the sixth unit is equal to the average benefit of the first five units of the good.

(True/False)

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Question 38

The income effect of an increase in the price of computers may include all of the following except a decrease in

(Multiple Choice)

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Question 39

The slope of the budget constraint is affected by the

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Question 40

Showing 21 - 40 of 136

To maximize utility, the amount that a consumer is willing to pay for one more unit of a good must equal the marginal benefit of that unit of good.

When there is an increase in the consumption of one good and a decrease in the consumption of another, utility

As more of a good is consumed by an individual,

Suppose music CDs and movie DVDs give the same utility to Jane, and she has $200 to spend on music CDs and movie DVDs. The price of a movie DVD is $15, and the price of a music CD is $10. Which of the following is the most affordable bundle for maximizing her utility?

An increase in the income of a family raises the slope of the family's budget constraint.

If price and marginal benefit are equal for an individual, and preferences and income do not change, the individual can be induced to buy more of a good only by

Consumer surplus applies only to market demand, not individual demand.

Utility is

The additional satisfaction gained from consuming one more unit of a product or service is

Define consumer surplus. Does a consumer really get a surplus? Why or why not?

Consumer surplus measures the difference between what consumers are willing to pay and what they actually pay for a given quantity of a good.

When marginal utility is positive but decreasing, an increase in quantity decreases total utility.

The height of a demand curve represents the

Exhibit 5-8 -Refer to Exhibit 5-8. If Stephanie and Roger are the only consumers, at a price of $3, the total consumer surplus is

The budget constraint

Which of the following is false about the assumptions that economists make about utility?

After consuming five units of a good, the price that a consumer is willing to pay for the sixth unit is equal to the average benefit of the first five units of the good.

The income effect of an increase in the price of computers may include all of the following except a decrease in

The slope of the budget constraint is affected by the

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity

The Supply Curve and the Behavior of Firms

The Interaction of People in Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Reading, Understanding, and Creating Graphs

Consumer Theory With Indifference Curves

Producer Theory With Isoquants

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