Exam 19: The Logic of Individual Choice: the Foundation of Supply and Demand

The following table lists the utility that Sarah receives from consuming bananas at $0.25 a banana. What is the marginal utility of consuming the fourth banana? Number of bananas Total utility 0 0 1 10 2 22 3 32 4 40 5 46

It is common for fashion trends to follow celebrity fashion choices. This is an example of:

If Steve willingly consumes another slice of pizza, you can be sure that his marginal utility is:

To choose, based on the principle of rational choice, among combinations of goods with a cost in money, one must compare:

Refer to the following graph. An indifference curve with a constant marginal rate of substitution is shown by:

Refer to the following graph. The marginal utility curve associated with this total utility curve is:

The message of the ultimatum game is that:

Economists account for changes in tastes for a good as:

According to the law of diminishing marginal utility:

Focal point equilibria definitely violate the principle of rational choice.

Refer to the graph shown. Assuming each carnival game costs $1 and each Ferris wheel ride costs $2, a consumer with $10 to spend will optimally choose to consume at point:

To calculate the total utility of consuming N quantity of a product:

If the average utility of good A is 15 and the average utility of good B is 25, you should:

Crackerjacks cost twice as much as Doritos. Fred maximizes utility by buying eight boxes of Crackerjacks and some number of bags of Doritos. If the last box of Crackerjacks gives Fred 100 units of utility, you can conclude that:

The theory of rational choice assumes that:

Steve has two choices for taking classes. Each is three credits and meets three hours a week, so we assume they have equal monetary costs. If Steve chooses to take a modern dance class instead of an economics class, it must be that for Steve the opportunity cost of taking a modern dance class exceeds the opportunity cost of taking an economics class.

Experiments based on the "ultimatum game" indicate that people are generally:

Jason is faced with two options: A BMW costing $40,000 gives him an additional 800 units of utility, and a laser printer costing $1,000 gives him an additional 25 units of utility. Rational choice theory would predict that he would choose:

In choosing between two products, a rational consumer will choose the product that gives her the:

If the price of one Weight Watchers' frozen dinner is $2 and the price of one dozen jelly doughnuts is $3, which of the following would Kent, a utility maximizing consumer, buy with his $6?