The table below shows the total value (in dollars) that Andrew gets from playing 9- hole rounds of golf. \[\begin{array}{l} \begin{array} { | l | l | } \hline \begin{array} { l } \text { Rounds of } \\ \text { Golf per } \\ \text { Month } \end{array} & \begin{array} { l } \text { Total Value } \\ ( \$ ) \end{array} \\ \hline 0 & 0 \\ \hline 1 & 40 \\ \hline 2 & 70 \\ \hline 3 & 92 \\ \hline 4 & 108 \\ \hline 5 & 120 \\ \hline 6 & 130 \\ \hline 7 & 130 \\ \hline \end{array}\\ \text { TABLE 6- } 3 \end{array}\] -Refer to Table 6- 3. If the price of a 9- hole round of golf is $22, then Andrew's consumer surplus will be

A) $202. B) $22. C) $108. D) $92. E) $26. A) $202. B) $22. C) $108. D) $92. E) $26.

A) is the total value that a consumer receives from the purchase of a particular good. B) is the sum of the marginal values to the consumer. C) is a measure of the gains that a consumer forgoes by buying this product rather than another. D) is the difference between what the consumer is willing to pay for all the units consumed and what he or she actually paid. E) is the consumption of a commodity above and beyond the amount required by the consumer. A) is the total value that a consumer receives from the purchase of a particular good. B) is the sum of the marginal values to the consumer. C) is a measure of the gains that a consumer forgoes by buying this product rather than another. D) is the difference between what the consumer is willing to pay for all the units consumed and what he or she actually paid. E) is the consumption of a commodity above and beyond the amount required by the consumer.

A) the same as total utility. B) the marginal value that consumers place on their purchases. C) the same as Karl Marx's notion of surplus value. D) the total value that consumers place on their purchases. E) the sum of the extra value placed on each unit of a commodity above the market price paid for each. A) the same as total utility. B) the marginal value that consumers place on their purchases. C) the same as Karl Marx's notion of surplus value. D) the total value that consumers place on their purchases. E) the sum of the extra value placed on each unit of a commodity above the market price paid for each.

The table below shows the total value (in dollars) that Andrew gets from playing 9- hole rounds of golf. \[\begin{array}{l} \begin{array} { | l | l | } \hline \begin{array} { l } \text { Rounds of } \\ \text { Golf per } \\ \text { Month } \end{array} & \begin{array} { l } \text { Total Value } \\ ( \$ ) \end{array} \\ \hline 0 & 0 \\ \hline 1 & 40 \\ \hline 2 & 70 \\ \hline 3 & 92 \\ \hline 4 & 108 \\ \hline 5 & 120 \\ \hline 6 & 130 \\ \hline 7 & 130 \\ \hline \end{array}\\ \text { TABLE 6- } 3 \end{array}\] -Refer to Table 6- 3. If the price of a 9- hole round of golf is $16, then Andrew's consumer surplus will be

A) $108. B) $16. C) $44. D) $92. E) $310. A) $108. B) $16. C) $44. D) $92. E) $310.

Exam 6: Consumer Behaviour

The table below shows the total value (in dollars) that Andrew gets from playing 9- hole rounds of golf. Rounds of Golf per Month Total Value (\ ) 0 0 1 40 2 70 3 92 4 108 5 120 6 130 7 130 TABLE 6- 3 -Refer to Table 6- 3. If the price of a 9- hole round of golf is $22, then Andrew's consumer surplus will be

(Multiple Choice)

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Question 41

At a garage sale, Dominique purchases a sewing machine for $30 when she was willing to pay $55. If the sewing machine costs $200 new, Dominique's consumer surplus would be _ .

(Multiple Choice)

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Question 42

Indifference theory is based on the assumption that

(Multiple Choice)

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Question 43

FIGURE 6- 1 -Refer to Figure 6- 1. Marginal utility is zero when total utility is

(Multiple Choice)

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Question 54

The table below shows the total value (in dollars) that Andrew gets from playing 9- hole rounds of golf. Rounds of Golf per Month Total Value (\ ) 0 0 1 40 2 70 3 92 4 108 5 120 6 130 7 130 TABLE 6- 3 -Refer to Table 6- 3. If the price of a 9- hole round of golf is $16, then Andrew's consumer surplus will be

(Multiple Choice)

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Question 55

FIGURE 6- 8 -Refer to Figure 6- 8. In part (ii), the consumer's move from point Z to point Y is caused by

(Multiple Choice)

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Question 56

A basic hypothesis of marginal utility theory is that the utility a consumer derives from successive units of a good diminishes as total consumption of the good increases. This hypothesis is known as

(Multiple Choice)

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Question 57

Suppose a consumer can purchase only two goods, pasta and cheese. Let the quantity of pasta be measured on the vertical axis and the quantity of cheese be measured on the horizontal axis. If the price of pasta falls, with no change in the price of cheese or in the consumer's money income, then the budget line for the consumer will shift

(Multiple Choice)

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Question 58

FIGURE 6- 8 -Refer to Figure 6- 8. In part (i), the consumer is able to move from point A to point B because of

(Multiple Choice)

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Question 59

In indifference curve analysis, a point to the left of the consumer's budget line

(Multiple Choice)

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Question 60

At a garage sale, Dominique purchases a sewing machine for $30 when she was willing to pay $55. If the sewing machine costs $200 new, Dominique's consumer surplus would be _ .

Indifference theory is based on the assumption that

FIGURE 6- 1 -Refer to Figure 6- 1. Marginal utility is zero when total utility is

Any consumption point that is on the budget line

Consumer surplus

The paradox in "the paradox of value" refers to the

If the income effect is negative and larger in absolute terms than the substitution effect, then the demand curve will be

An indifference curve plotted for two different goods on the axes

If John consumes only two goods, A and B, and he is maximizing his utility subject to his budget constraint,

A demand curve for a normal good is downward sloping due to

In indifference curve analysis, the consumer's utility- maximizing point is where

Consumer surplus is

The diagram below shows a set of budget lines facing a household. FIGURE 6- 7 -Refer to Figure 6- 7. The movement of the budget line from ab to ac could be caused by

FIGURE 6- 8 -Refer to Figure 6- 8. In part (ii), the consumer's move from point Z to point Y is caused by

A basic hypothesis of marginal utility theory is that the utility a consumer derives from successive units of a good diminishes as total consumption of the good increases. This hypothesis is known as

FIGURE 6- 8 -Refer to Figure 6- 8. In part (i), the consumer is able to move from point A to point B because of

In indifference curve analysis, a point to the left of the consumer's budget line

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