Exam 6: Household Behavior and Consumer Choice

Refer to the information provided in Figure 6.15 below to answer the question that follows. Figure 6.15 -Refer to Figure 6.15. Jason is not maximizing his utility at point

Refer to the information provided in Figure 6.15 below to answer the question that follows. Figure 6.15 -Refer to Figure 6.15. If the price of a hot dog is $2, Jason's income is

Michael can buy either pizzas or submarine sandwiches. If the prices of pizzas and submarine sandwiches fall by half and so does Michael's money income, we can conclude that Michael's budget constraint will

Assuming that leisure is a normal good, if an individual's labor supply curve is backward bending, then the

If MU_x/P_x < MU_y/P_y, then

Refer to the information provided in Figure 6.13 below to answer the question(s) that follow. Figure 6.13 -Refer to Figure 6.13. Assume Ellen has two products available, pizza and hamburgers. Ellen is always willing to trade one pizza for one hamburger regardless of how many pizzas and hamburgers she has. The curve in Panel ________ represents her indifference curve.

Refer to the information provided in Figure 6.15 below to answer the question that follows. Figure 6.15 -Refer to Figure 6.15. Why is Jason not maximizing his utility at point B?

As you move up an indifference curve, the absolute value of the slope

Sue is maximizing her utility. Her MU_x/P_x = 10 and MU_y = 40. Then the price of Y must be

Refer to the information provided in Figure 6.8 below to answer the question(s) that follow. Figure 6.8 -Refer to Figure 6.8. The ________ movie rental has a marginal utility of fifteen.

A person maximizes utility when he equalizes the ________ across products.

Assuming the properties of normal indifference curves, a consumer will maximize his utility where his indifference curve is just tangent to his budget constraint.

The law of diminishing marginal utility implies that as a household consumes more of a product, its total utility will increase by smaller amounts, assuming marginal utility remains positive.

Refer to the information provided in Figure 6.3 below to answer the question(s) that follow. Figure 6.3 -Refer to Figure 6.3. Molly's budget constraint is AB. It would swivel to AD if the price of

Jon is consuming X and Y so that he is spending his entire income and MU_x/P_x = 4 and MU_y/P_y = 4. To maximize utility, he should consume

Refer to the information provided in Table 6.3 below to answer the question(s) that follow. Table 6.3 Dozens of Oysters per Day Total Utility Marginal Utility 1 60 2 104 3 134 4 152 8 5 Number of Beersper Day Total Utility Marginal Utility 1 40 2 70 3 94 4 114 5 14 -Refer to Table 6.3. The total utility of five dozen oysters per day is

Refer to the information provided in Figure 6.10 below to answer the question(s) that follow. Figure 6.10 -Refer to Figure 6.10. The current price of a turkey sandwich is $6. If Kyle is currently buying five turkey sandwiches a week, he ________ maximizing utility because the marginal utility ________ than its price.

If the income effect of a wage change outweighs the substitution effect of a wage change, the labor-supply curve is

Refer to the information provided in Figure 6.1 below to answer the question(s) that follow. Figure 6.1 -Refer to Figure 6.1. Assume Tom's budget constraint is AC. At which point does Tom consume only hamburgers?

The law of diminishing marginal utility refers to