Question 1

Marginal utility theory is about

Accepted Answer

A) the consumer behaviour that underlies the theory of demand. 
B) proving that demand curves are always downward sloping. 
C) the total satisfaction resulting from the consumption of some good by the consumer. 
D) how producers allocate their scarce resources. 
E) calculating consumer surplus. 
A) the consumer behaviour that underlies the theory of demand. 
B) proving that demand curves are always downward sloping. 
C) the total satisfaction resulting from the consumption of some good by the consumer. 
D) how producers allocate their scarce resources. 
E) calculating consumer surplus.

Question 2

If all consumers in an economy have maximized their utility,and they face a given set of market prices,then each consumer will have identical

Accepted Answer

A) total utilities for each good. 
B) marginal utilities for each good. 
C) marginal utilities per unit of each good. 
D) ratios of marginal utility to price for each good. 
E) consumption of each good. 
A) total utilities for each good. 
B) marginal utilities for each good. 
C) marginal utilities per unit of each good. 
D) ratios of marginal utility to price for each good. 
E) consumption of each good.

Question 3

The table below shows the quantities of toffee bars and bags of cashews that a consumer could consume over a 1-week period.   TABLE 6-1
-Refer to Table 6-1.If the prices of toffee bars and bags of cashews are both $1 and this consumer has $7 per week to spend on these two snacks,how many of each will he/she purchase to maximize utility?

Accepted Answer

A) 2 toffee bars and 5 bags of cashews 
B) 3 toffee bars and 4 bags of cashews 
C) 4 toffee bars and 3 bags of cashews 
D) 5 toffee bars and 2 bags of cashews 
E) 6 toffee bars and 1 bag of cashews 
A) 2 toffee bars and 5 bags of cashews 
B) 3 toffee bars and 4 bags of cashews 
C) 4 toffee bars and 3 bags of cashews 
D) 5 toffee bars and 2 bags of cashews 
E) 6 toffee bars and 1 bag of cashews

Question 4

The diagram below shows a set of budget lines facing a household.
   FIGURE 6-8
-Refer to Figure 6-8.The movement of the budget line from ab to ac could be caused by

Accepted Answer

A) an increase in money income. 
B) an increase in the price of food. 
C) an increase in the price of housing. 
D) a decrease in the price of food. 
E) a decrease in the price of housing. 
A) an increase in money income. 
B) an increase in the price of food. 
C) an increase in the price of housing. 
D) a decrease in the price of food. 
E) a decrease in the price of housing.

Marginal utility theory is about

If all consumers in an economy have maximized their utility,and they face a given set of market prices,then each consumer will have identical

The diagram below shows a set of budget lines facing a household. FIGURE 6-8 -Refer to Figure 6-8.The movement of the budget line from ab to ac could be caused by

Economic Issues and Concepts

Economic Theories, data, and Graphs

Demand, supply, and Price

Elasticity

Price Controls and Market Efficiency

Producers in the Short Run

Producers in the Long Run

Competitive Markets

Monopoly, cartels, and Price Discrimination

Imperfect Competition and Strategic Behaviour

Economic Efficiency and Public Policy

How Factor Markets Work

Labour Markets and Income Inequality

Market Failures and Government Intervention

The Economics of Environmental Protection

Taxation and Public Expenditure

What Macroeconomics Is All About

The Measurement of National Income

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

Output and Prices in the Short Run

From the Short Run to the Long Run: the Adjustment of Factor Prices

Long-Run Economic Growth

Money and Banking

Money, interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Exchange Rates and the Balance of Payments

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Exam 6: Consumer Behaviour

Marginal utility theory is about

If all consumers in an economy have maximized their utility,and they face a given set of market prices,then each consumer will have identical

The diagram below shows a set of budget lines facing a household. FIGURE 6-8 -Refer to Figure 6-8.The movement of the budget line from ab to ac could be caused by

Economic Issues and Concepts

Economic Theories, data, and Graphs

Demand, supply, and Price

Elasticity

Price Controls and Market Efficiency

Producers in the Short Run

Producers in the Long Run

Competitive Markets

Monopoly, cartels, and Price Discrimination

Imperfect Competition and Strategic Behaviour

Economic Efficiency and Public Policy

How Factor Markets Work

Labour Markets and Income Inequality

Market Failures and Government Intervention

The Economics of Environmental Protection

Taxation and Public Expenditure

What Macroeconomics Is All About

The Measurement of National Income

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

Output and Prices in the Short Run

From the Short Run to the Long Run: the Adjustment of Factor Prices

Long-Run Economic Growth

Money and Banking

Money, interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Exchange Rates and the Balance of Payments

Filters