Question 1

The additional pleasure or satisfaction from a good declines as more of it is consumed in a given period.This is the definition of the

Accepted Answer

A) Law of demand. 
B) Law of diminishing marginal utility. 
C) Law of diminishing total utility. 
A) Law of demand. 
B) Law of diminishing marginal utility. 
C) Law of diminishing total utility.

Question 2

Under what conditions can sellers engage in price discrimination?

Accepted Answer

Price discrimination occurs when sellers

Question 3

An indifference curve shows the

Accepted Answer

A) Maximum utility that can be achieved for a given consumer budget. 
B) Maximum utility that can be achieved for different amounts of a good. 
C) Combinations of goods giving equal utility to a consumer. 
A) Maximum utility that can be achieved for a given consumer budget. 
B) Maximum utility that can be achieved for different amounts of a good. 
C) Combinations of goods giving equal utility to a consumer.

Question 4

Which of the following is not held constant when considering a shift in the demand for pizza?

Accepted Answer

A) Consumer incomes. 
B) The price of pizza. 
C) The price of spaghetti (a substitute). 
A) Consumer incomes. 
B) The price of pizza. 
C) The price of spaghetti (a substitute).

Question 5

If Josh's income increases,then

Accepted Answer

A) His entire budget constraint will shift toward the origin. 
B) His entire budget constraint will shift away from the origin. 
C) His indifference curves will shift away from the origin. 
A) His entire budget constraint will shift toward the origin. 
B) His entire budget constraint will shift away from the origin. 
C) His indifference curves will shift away from the origin.

Question 6

Colleges do not engage in price discrimination because it is illegal.

Accepted Answer

A) True 
 B)False

Question 7

Jose goes to an all-you-can-eat buffet at a Chinese restaurant and consumes three plates of food.He does not go back for a fourth plate of food because

Accepted Answer

A) The price of the fourth plate is too high. 
B) He has reached the point of increasing marginal utility. 
C) The marginal utility of the fourth plate would be zero or even negative. 
A) The price of the fourth plate is too high. 
B) He has reached the point of increasing marginal utility. 
C) The marginal utility of the fourth plate would be zero or even negative.

Question 8

-Refer to Figure 19.2.The total utility of five apples is

Accepted Answer

A) 1 utils. 
B) 17 utils. 
C) 18 utils. 
A) 1 utils. 
B) 17 utils. 
C) 18 utils.

Question 9

When a rational consumer has stopped buying,she or he will have allocated a limited budget so that the marginal utility per good will be the same.

Accepted Answer

A) True 
 B)False

Question 10

Economists accept consumer tastes as given and focus on

Accepted Answer

A) How price will affect actual consumer purchases. 
B) How culture affects consumer preferences. 
C) How advertising molds consumer desires. 
A) How price will affect actual consumer purchases. 
B) How culture affects consumer preferences. 
C) How advertising molds consumer desires.

Question 11

Utility refers to the

Accepted Answer

A) Satisfaction obtained from a good or service. 
B) Additional satisfaction obtained from one more unit of a good or service. 
C) Willingness to buy specific quantities of a good or service at a particular price. 
A) Satisfaction obtained from a good or service. 
B) Additional satisfaction obtained from one more unit of a good or service. 
C) Willingness to buy specific quantities of a good or service at a particular price.

Question 12

-Refer to Table 19.1.The marginal utility Josh enjoys from the fourth slice of pizza is

Accepted Answer

A) 20 utils. 
B) 54 utils. 
C) 5 utils. 
A) 20 utils. 
B) 54 utils. 
C) 5 utils.

Question 13

Marginal utility is

Accepted Answer

A) The sum of the total utility of consuming a certain amount of a good. 
B) The additional utility a consumer enjoys from the consumption of one more unit of a good. 
C) The diminishing nature of total utility. 
A) The sum of the total utility of consuming a certain amount of a good. 
B) The additional utility a consumer enjoys from the consumption of one more unit of a good. 
C) The diminishing nature of total utility.

Question 14

-Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.Point D on the graph

Accepted Answer

A) Is not affordable. 
B) Is affordable but does not yield the highest utility possible. 
C) Is affordable and is the optimal consumption bundle for this individual. 
A) Is not affordable. 
B) Is affordable but does not yield the highest utility possible. 
C) Is affordable and is the optimal consumption bundle for this individual.

Question 15

Optimal consumption is the mix of consumer goods sold that maximizes utility for producers.

Accepted Answer

A) True 
 B)False

Question 16

- Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.In Figure 19.3,given an income of $30 and a price for good Y of $1,which of the following two points represent optimal consumption?

Accepted Answer

A) A when the price of X is $3 and C when the price of X is $1. 
B) B when the price of X is $1 and D when the price of X is $3. 
C) A when the price of X is $1 and D when the price of X is $3. 
A) A when the price of X is $3 and C when the price of X is $1. 
B) B when the price of X is $1 and D when the price of X is $3. 
C) A when the price of X is $1 and D when the price of X is $3.

Question 17

The slope of the indifference curve is equal to the

Accepted Answer

A) Ratio of the price of one good to the price of the other good. 
B) Income of the consumer. 
C) Marginal rate of substitution. 
A) Ratio of the price of one good to the price of the other good. 
B) Income of the consumer. 
C) Marginal rate of substitution.

Question 18

If an individual demands a good,it means that he or she

Accepted Answer

A) Has a strong desire for the good. 
B) Is willing and able to purchase the good at some price. 
C) Must need the good. 
A) Has a strong desire for the good. 
B) Is willing and able to purchase the good at some price. 
C) Must need the good.

Question 19

Total utility is maximized when

Accepted Answer

A) Price is less than marginal utility. 
B) Price is equal to marginal utility. 
C) Marginal utility is zero. 
A) Price is less than marginal utility. 
B) Price is equal to marginal utility. 
C) Marginal utility is zero.

Question 20

Which of the following statements best captures the concept of consumer surplus?

Accepted Answer

A) "I saw a sale for flowers,so I bought four bundles." 
B) "I was willing to pay $30 for a dozen roses,but I bought them for $20." 
C) "I was willing to pay $30 for roses,but they are selling for $35,so I did not buy." 
A) "I saw a sale for flowers,so I bought four bundles." 
B) "I was willing to pay $30 for a dozen roses,but I bought them for $20." 
C) "I was willing to pay $30 for roses,but they are selling for $35,so I did not buy."

Exam 19: Consumer Choice Appendix: Indifference Curves

The additional pleasure or satisfaction from a good declines as more of it is consumed in a given period.This is the definition of the

Under what conditions can sellers engage in price discrimination?

An indifference curve shows the

Which of the following is not held constant when considering a shift in the demand for pizza?

If Josh's income increases,then

Colleges do not engage in price discrimination because it is illegal.

Jose goes to an all-you-can-eat buffet at a Chinese restaurant and consumes three plates of food.He does not go back for a fourth plate of food because

-Refer to Figure 19.2.The total utility of five apples is

When a rational consumer has stopped buying,she or he will have allocated a limited budget so that the marginal utility per good will be the same.

Economists accept consumer tastes as given and focus on

Utility refers to the

-Refer to Table 19.1.The marginal utility Josh enjoys from the fourth slice of pizza is

Marginal utility is

-Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.Point D on the graph

Optimal consumption is the mix of consumer goods sold that maximizes utility for producers.

- Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.In Figure 19.3,given an income of $30 and a price for good Y of $1,which of the following two points represent optimal consumption?

The slope of the indifference curve is equal to the

If an individual demands a good,it means that he or she

Total utility is maximized when

Which of the following statements best captures the concept of consumer surplus?

Economics: the Core Issues Appendix: Using Graphs

The Us Economy: a Global View

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand Appendix: the Keynesian Cross

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

International Finance

Global Poverty Glossary Index Reference Tables

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