What is the marginal utility of the fourth can of soda? $\begin{array}{c} \begin{array}{|c|} \hline \text {Cans of Soda}\\ \hline1\\ \hline2\\ \hline3\\ \hline4\\ \hline5\\ \hline \end{array} \begin{array}{c|} \hline \text {Total utility}\\ \hline14\\ \hline\\ \hline36\\ \hline44\\ \hline\\ \hline \end{array} \begin{array}{c|} \hline \text {Marginal utility}\\ \hline\\ \hline12\\ \hline\\ \hline\\ \hline6\\ \hline \end{array} \end{array}$

A) 44 units of utility B) 10 units of utility C) 8 units of utility D) 2 units of utility A) 44 units of utility B) 10 units of utility C) 8 units of utility D) 2 units of utility

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

Suppose there is diminishing, but not negative, marginal utility and no inflation. If the price of labor goes up, a worker will supply more labor. (Hint: The worker measures his marginal costs in terms of hours worked.)

(True/False)

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Question 81

Given that price is constant, the lower the marginal utility of a good as more of the good is consumed the:

(Multiple Choice)

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Question 82

Refer to the graph shown. Assuming each carnival game costs $1 and each Ferris wheel ride costs $2, a consumer with $16 to spend will optimally choose to consume at point:

(Multiple Choice)

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Question 83

Suppose Jack purchases four rolls of brown paper for which he receives 100 units of total utility and two quarts of vinegar for which he receives 50 units of total utility. Assuming Jack maximizes utility, if the price of brown paper is $2 a roll, the cost of two quarts of vinegar must be:

(Multiple Choice)

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Question 84

Conspicuous consumption refers to the consumption of goods and services:

(Multiple Choice)

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Question 85

When marginal utility of consuming a good is zero, total utility is:

(Multiple Choice)

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Question 86

As long as total utility is increasing, we know that marginal utility is:

(Multiple Choice)

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Question 87

When the ratios of the marginal utility to the price of goods are equal, you're maximizing utility.

(True/False)

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Question 88

Refer to the graph shown. Between points B and D, marginal utility is:

(Multiple Choice)

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Question 89

The use of expensive cars and yachts to impress others rather than just as transportation is an example of what economists call:

(Multiple Choice)

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Question 90

Joe is maximizing utility by consuming three colas at $2 apiece and four hot dogs at $3 apiece. The last cola gave him 200 units of utility. How many units of utility did the last hot dog give him?

(Multiple Choice)

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Question 91

The last Big Mac that Eva consumes costs $2.00 and gives her 24 units of utility. The last Whopper she consumes costs $1.50 and gives her 18 units of utility. Eva is maximizing her utility. If the price of the Whopper falls to $1.30 and given diminishing marginal utility, Eva should:

(Multiple Choice)

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Question 92

Refer to the graph shown. Between points C and D, marginal utility is:

(Multiple Choice)

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Question 93

The principle of diminishing marginal utility states that people don't enjoy consuming more of a good.

(True/False)

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Question 94

The theory of bounded rationality suggests that as price rises:

(Multiple Choice)

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Question 95

What is the marginal utility of the fourth can of soda? Cans of Soda 1 2 3 4 5 Total utility 14 36 44 Marginal utility 12 6

(Multiple Choice)

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Question 96

Refer to the graphs shown. Which of the following combinations of points best illustrates rational consumer choice assuming the consumer's budget is $60, the price of X is $3, and the price of Y is $3?

(Multiple Choice)

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Question 97

The slope of a budget constraint with combinations of cookies that cost $1 a cookie and milk that costs $0.50 a carton (with cookies on the y-axis and milk on the x-axis) is:

(Multiple Choice)

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Question 98

Refer to the following graph. Marginal utility is:

(Multiple Choice)

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Question 99

Joan is deciding where to spend her spring break. If she goes to Cancún, Mexico, the trip will give her 9,000 units of utility and will cost her $300. If she travels to Florida instead, the trip will give her 8,000 units of utility and will cost her only $200. Joan will do best going to:

(Multiple Choice)

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Question 100

Showing 81 - 100 of 134

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

Suppose there is diminishing, but not negative, marginal utility and no inflation. If the price of labor goes up, a worker will supply more labor. (Hint: The worker measures his marginal costs in terms of hours worked.)

Given that price is constant, the lower the marginal utility of a good as more of the good is consumed the:

Refer to the graph shown. Assuming each carnival game costs $1 and each Ferris wheel ride costs $2, a consumer with $16 to spend will optimally choose to consume at point:

Suppose Jack purchases four rolls of brown paper for which he receives 100 units of total utility and two quarts of vinegar for which he receives 50 units of total utility. Assuming Jack maximizes utility, if the price of brown paper is $2 a roll, the cost of two quarts of vinegar must be:

Conspicuous consumption refers to the consumption of goods and services:

When marginal utility of consuming a good is zero, total utility is:

As long as total utility is increasing, we know that marginal utility is:

When the ratios of the marginal utility to the price of goods are equal, you're maximizing utility.

Refer to the graph shown. Between points B and D, marginal utility is:

The use of expensive cars and yachts to impress others rather than just as transportation is an example of what economists call:

Joe is maximizing utility by consuming three colas at $2 apiece and four hot dogs at $3 apiece. The last cola gave him 200 units of utility. How many units of utility did the last hot dog give him?

The last Big Mac that Eva consumes costs $2.00 and gives her 24 units of utility. The last Whopper she consumes costs $1.50 and gives her 18 units of utility. Eva is maximizing her utility. If the price of the Whopper falls to $1.30 and given diminishing marginal utility, Eva should:

Refer to the graph shown. Between points C and D, marginal utility is:

The principle of diminishing marginal utility states that people don't enjoy consuming more of a good.

The theory of bounded rationality suggests that as price rises:

What is the marginal utility of the fourth can of soda? Cans of Soda 1 2 3 4 5 Total utility 14 36 44 Marginal utility 12 6

Refer to the graphs shown. Which of the following combinations of points best illustrates rational consumer choice assuming the consumer's budget is $60, the price of X is $3, and the price of Y is $3?

The slope of a budget constraint with combinations of cookies that cost $1 a cookie and milk that costs $0.50 a carton (with cookies on the y-axis and milk on the x-axis) is:

Refer to the following graph. Marginal utility is:

Joan is deciding where to spend her spring break. If she goes to Cancún, Mexico, the trip will give her 9,000 units of utility and will cost her $300. If she travels to Florida instead, the trip will give her 8,000 units of utility and will cost her only $200. Joan will do best going to:

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