A) states that we value an item more highly if we own it than if we do not own it. B) is the same as compartmentalizing. C) states that people are often willing to make themselves worse off in order to make someone else worse off. D) states that people are often willing to make themselves worse off in order to make someone else better off. E) a and d A) states that we value an item more highly if we own it than if we do not own it. B) is the same as compartmentalizing. C) states that people are often willing to make themselves worse off in order to make someone else worse off. D) states that people are often willing to make themselves worse off in order to make someone else better off. E) a and d

Exam 21: Consumer Choice: Maximizing Utility and Behavioral Economics

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Jones buys two goods,A and B.Currently,Jones receives marginal utility of 24 utils from good A and pays a price of $1.50 per unit.Jones receives a marginal utility of 43 utils from good B and pays a price of $1.99 per unit.Jones receives __________ per dollar from good B as he does from good A.

(Multiple Choice)

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Question 141

If,as a person consumes additional units of a good,total utility rises by a constant amount,it follows that

(Multiple Choice)

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Question 142

Research presented in the text shows that people are more likely to spend a larger percentage of money received from the government when it is called a "tax bonus" than they would if it were called a "tax rebate."

(True/False)

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Question 143

We would expect the total utility of water to be high but its marginal utility to be low.Why?

(Multiple Choice)

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Question 144

Exhibit 21-8 -Refer to Exhibit 21-8.A move of the budget constraint from 2 to 3 is caused by a

(Multiple Choice)

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Question 145

The one's income,the one's budget constraint.

(Multiple Choice)

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Question 146

If Smith will give up three units of Y to get one additional unit of X,then

(Multiple Choice)

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Question 147

The endowment effect

(Multiple Choice)

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Question 148

Explain the difference between total utility and marginal utility. Give a hypothetical example to help support your answer.

(Essay)

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Question 149

If a person's income falls,his or her budget constraint moves

(Multiple Choice)

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Question 150

Joe is currently in consumer equilibrium by consuming cheese and crackers,such that the last cracker consumed yielded 8 utils and the last piece of cheese consumed yielded 12 utils.Assume the price of crackers is two cents per cracker and the price of cheese is three cents per piece.If the price of crackers increases to four cents,Joe should his consumption of crackers and his marginal utility from crackers will and also his consumption of cheese and his marginal utility from cheese will .

(Multiple Choice)

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Question 151

Which of the following statements is false?

(Multiple Choice)

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Question 152

Exhibit 21-3 -Refer to Exhibit 21-3.Assume that the price of oranges increases to $2,while the price of apples remains at $1,and Linda allocates $5 of the weekly food budget to purchasing apples and oranges.If Linda wants to maximize her utility,her new consumption bundle will consist of

(Multiple Choice)

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Question 153

Marginal utility is computed by dividing total utility by the quantity consumed of a good.

(True/False)

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Question 154

Consumer equilibrium occurs at the point where the slope of the budget constraint is equal to the slope of the indifference curve.

(True/False)

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Question 155

Implicit in the solution to the diamond-water paradox is the idea that prices reflect utility instead of utility.

(Multiple Choice)

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Question 156

Exhibit 21-1 -Refer to Exhibit 21-1.The marginal utility of the fourth plum is

(Multiple Choice)

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Question 157

Exhibit 21-3 -Refer to Exhibit 21-3.Linda spends $5 a week on apples and oranges.If the price of both goods is $1 per unit,what is Linda's total utility from consuming the optimal bundle of goods?

(Multiple Choice)

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Question 158

Describe some of the findings of behavioral economists presented in the text and explain how these findings differ from the traditional economic framework.

(Essay)

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Question 159

Suppose you just finished your third plateful of Thanksgiving dinner and it yielded zero units of additional satisfaction.Should you go back for more?

(Multiple Choice)

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Question 160

Showing 141 - 160 of 176

Exam 21: Consumer Choice: Maximizing Utility and Behavioral Economics

Jones buys two goods,A and B.Currently,Jones receives marginal utility of 24 utils from good A and pays a price of $1.50 per unit.Jones receives a marginal utility of 43 utils from good B and pays a price of $1.99 per unit.Jones receives __________ per dollar from good B as he does from good A.

If,as a person consumes additional units of a good,total utility rises by a constant amount,it follows that

Research presented in the text shows that people are more likely to spend a larger percentage of money received from the government when it is called a "tax bonus" than they would if it were called a "tax rebate."

We would expect the total utility of water to be high but its marginal utility to be low.Why?

Exhibit 21-8 -Refer to Exhibit 21-8.A move of the budget constraint from 2 to 3 is caused by a

The __________ one's income,the __________ one's budget constraint.

If Smith will give up three units of Y to get one additional unit of X,then

The endowment effect

Explain the difference between total utility and marginal utility. Give a hypothetical example to help support your answer.

If a person's income falls,his or her budget constraint moves

Which of the following statements is false?

Exhibit 21-3 -Refer to Exhibit 21-3.Assume that the price of oranges increases to $2,while the price of apples remains at $1,and Linda allocates $5 of the weekly food budget to purchasing apples and oranges.If Linda wants to maximize her utility,her new consumption bundle will consist of

Marginal utility is computed by dividing total utility by the quantity consumed of a good.

Consumer equilibrium occurs at the point where the slope of the budget constraint is equal to the slope of the indifference curve.

Implicit in the solution to the diamond-water paradox is the idea that prices reflect __________ utility instead of __________ utility.

Exhibit 21-1 -Refer to Exhibit 21-1.The marginal utility of the fourth plum is

Exhibit 21-3 -Refer to Exhibit 21-3.Linda spends $5 a week on apples and oranges.If the price of both goods is $1 per unit,what is Linda's total utility from consuming the optimal bundle of goods?

Describe some of the findings of behavioral economists presented in the text and explain how these findings differ from the traditional economic framework.

Suppose you just finished your third plateful of Thanksgiving dinner and it yielded zero units of additional satisfaction.Should you go back for more?

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Macroeconomic Measurements: Prices and Unemployment

Macroeconomic Measurements: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money, Banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, Technology, Ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,Unions,and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case For and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Agriculture: Problems, Policies, and Unintended Effects

Filters

The one's income,the one's budget constraint.

Implicit in the solution to the diamond-water paradox is the idea that prices reflect utility instead of utility.