Exhibit 6-3 Marginal utility data for goods X and Y \[\begin{array} { | c | c | c | c | } \hline \text { Units of good X } & \begin{array} { c } \text { Marginal utility of } \\ \text { good X } \end{array} & \text { Units of good Y } & \begin{array} { c } \text { Marginal utility of } \\ \operatorname { good~Y } \end{array} \\ \hline 1 & 20 & 1 & 14 \\ 2 & 16 & 2 & 12 \\ 3 & 12 & 3 & 10 \\ 4 & 8 & 4 & 8 \\ 5 & 4 & 5 & 6 \\ \hline \end{array}\] -As shown in Exhibit 6-3, assume that the price of both goods is $1 per total unit, and your budget is $8. If you consume 4 units of good X and 1 unit of good Y. To maximize utility, you should consume:

A) neither X nor Y. B) more of X and less of Y. C) less of X and more of Y. D) more of both X and Y. E) less of both X and Y. A) neither X nor Y. B) more of X and less of Y. C) less of X and more of Y. D) more of both X and Y. E) less of both X and Y.

Exhibit 6-3 Marginal utility data for goods X and Y \[\begin{array} { | c | c | c | c | } \hline \text { Units of good X } & \begin{array} { c } \text { Marginal utility of } \\ \text { good X } \end{array} & \text { Units of good Y } & \begin{array} { c } \text { Marginal utility of } \\ \operatorname { good~Y } \end{array} \\ \hline 1 & 20 & 1 & 14 \\ 2 & 16 & 2 & 12 \\ 3 & 12 & 3 & 10 \\ 4 & 8 & 4 & 8 \\ 5 & 4 & 5 & 6 \\ \hline \end{array}\] -As shown in Exhibit 6-3, assume that the price of good X is $1 per unit and the price of good Y is $2 per unit and your budget is $13. If you consume 4 units of good X and 2 units of good Y and maximize utility, you should consume:

A) neither X nor Y. B) more of X and less of Y. C) more of Y. D) more of both X and Y. E) less of both X and Y. A) neither X nor Y. B) more of X and less of Y. C) more of Y. D) more of both X and Y. E) less of both X and Y.

Exam 6: Consumer Choice Theory

Exhibit 6-3 Marginal utility data for goods X and Y Units of good X Marginal utility of good X Units of good Y Marginal utility of good\nobreakspaceY 1 20 1 14 2 16 2 12 3 12 3 10 4 8 4 8 5 4 5 6 -As shown in Exhibit 6-3, assume that the price of both goods is $1 per total unit, and your budget is $8. If you consume 4 units of good X and 1 unit of good Y. To maximize utility, you should consume:

(Multiple Choice)

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Question 241

The marginal utilities associated with the first 5 units of consumption of good Y are 15, 15, 10, 7, and 3, respectively. What is the total utility associated with those 5 units?

(Multiple Choice)

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Question 242

Exhibit 6A-7 Consumer equilibrium -As shown in Exhibit 6A-7, movement from consumer equilibrium at point A to point B is caused by a(n):

(Multiple Choice)

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Question 243

An indifference curve has a negative slope because movement along the curve requires the consumer to give up the:

(Multiple Choice)

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Question 244

Given the prices of two goods, all quantity combinations outside the budget line are:

(Multiple Choice)

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Question 245

"As consumption of a good increases, the extra satisfaction received from consuming an additional unit of the good decreases." This statement is known as the law of:

(Multiple Choice)

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Question 246

Suppose a consumer is spending all of his/her income on two goods, A and B, in a manner where MU_a = 15 and MU_b = 75, and the P_a = $3 and the P_b = $15, then the consumer:

(Multiple Choice)

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Question 247

The law of diminishing marginal utility exists for the first four units of a good if they have marginal utilities of:

(Multiple Choice)

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Question 248

The income effect is the concept that changes in consumption of a good result from changes in government spending.

(True/False)

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Question 249

Exhibit 6-3 Marginal utility data for goods X and Y Units of good X Marginal utility of good X Units of good Y Marginal utility of good\nobreakspaceY 1 20 1 14 2 16 2 12 3 12 3 10 4 8 4 8 5 4 5 6 -As shown in Exhibit 6-3, assume that the price of good X is $1 per unit and the price of good Y is $2 per unit and your budget is $13. If you consume 4 units of good X and 2 units of good Y and maximize utility, you should consume:

(Multiple Choice)

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Question 250

Consider a consumer who spends all income on only two goods: pizza and soda. An extra slice of pizza would give the consumer 60 extra utils, while an extra can of soda would give the consumer 20 extra utils. Pizza costs $3 per slice, and soda costs $1 per can. In this situation, the consumer:

(Multiple Choice)

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Question 251

Suppose you have spent your entire budget and for all the goods you purchase the marginal utilities per dollar spent are identical. Which of the following is true?

(Multiple Choice)

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Question 252

A fall in marginal utility reflects:

(Multiple Choice)

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Question 253

The substitution effect is the concept that changes in consumption of a good result from changes in the relative price of a jointly consumed good.

(True/False)

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Question 254

Exhibit 6A-5 Consumer Equilibrium -Given the budget lines and indifference curves shown in Exhibit 6A-5, if the budget line shifts from AB to AC, then the:

(Multiple Choice)

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Question 255

A local restaurant offers an "all you can eat" ribs special. You pay $11.95, and then you can eat as many servings as you desire at no additional cost. It would follow that you will stop eating when:

(Multiple Choice)

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Question 256

Suppose that an individual consumes just two goods: Big Macs and milkshakes. In order to reach consumer equilibrium, the individual must arrange the consumption of Big Macs and milkshakes so that the:

(Multiple Choice)

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Question 257

Changes in relative prices create substitution effects.

(True/False)

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Question 258

Assume the price of good Y with its quantity measured on the vertical axis is $20 and the price of good X with its quantity measured on the horizontal axis is $5. If the consumer's budget is $100, then the absolute value of the slope of the budget line is:

(Multiple Choice)

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Question 259

If the price of a good decreases, the resulting increase in the quantity purchased decreases the marginal utility of the good.

(True/False)

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Question 260

Showing 241 - 260 of 272

The marginal utilities associated with the first 5 units of consumption of good Y are 15, 15, 10, 7, and 3, respectively. What is the total utility associated with those 5 units?

Exhibit 6A-7 Consumer equilibrium -As shown in Exhibit 6A-7, movement from consumer equilibrium at point A to point B is caused by a(n):

An indifference curve has a negative slope because movement along the curve requires the consumer to give up the:

Given the prices of two goods, all quantity combinations outside the budget line are:

"As consumption of a good increases, the extra satisfaction received from consuming an additional unit of the good decreases." This statement is known as the law of:

Suppose a consumer is spending all of his/her income on two goods, A and B, in a manner where MU_a = 15 and MU_b = 75, and the P_a = $3 and the P_b = $15, then the consumer:

The law of diminishing marginal utility exists for the first four units of a good if they have marginal utilities of:

The income effect is the concept that changes in consumption of a good result from changes in government spending.

Consider a consumer who spends all income on only two goods: pizza and soda. An extra slice of pizza would give the consumer 60 extra utils, while an extra can of soda would give the consumer 20 extra utils. Pizza costs $3 per slice, and soda costs $1 per can. In this situation, the consumer:

Suppose you have spent your entire budget and for all the goods you purchase the marginal utilities per dollar spent are identical. Which of the following is true?

A fall in marginal utility reflects:

The substitution effect is the concept that changes in consumption of a good result from changes in the relative price of a jointly consumed good.

Exhibit 6A-5 Consumer Equilibrium -Given the budget lines and indifference curves shown in Exhibit 6A-5, if the budget line shifts from AB to AC, then the:

A local restaurant offers an "all you can eat" ribs special. You pay $11.95, and then you can eat as many servings as you desire at no additional cost. It would follow that you will stop eating when:

Suppose that an individual consumes just two goods: Big Macs and milkshakes. In order to reach consumer equilibrium, the individual must arrange the consumption of Big Macs and milkshakes so that the:

Changes in relative prices create substitution effects.

Assume the price of good Y with its quantity measured on the vertical axis is $20 and the price of good X with its quantity measured on the horizontal axis is $5. If the consumer's budget is $100, then the absolute value of the slope of the budget line is:

If the price of a good decreases, the resulting increase in the quantity purchased decreases the marginal utility of the good.

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exam 6: Consumer Choice Theory

The marginal utilities associated with the first 5 units of consumption of good Y are 15, 15, 10, 7, and 3, respectively. What is the total utility associated with those 5 units?

Exhibit 6A-7 Consumer equilibrium ​ -As shown in Exhibit 6A-7, movement from consumer equilibrium at point A to point B is caused by a(n):

An indifference curve has a negative slope because movement along the curve requires the consumer to give up the:

Given the prices of two goods, all quantity combinations outside the budget line are:

"As consumption of a good increases, the extra satisfaction received from consuming an additional unit of the good decreases." This statement is known as the law of:

Suppose a consumer is spending all of his/her income on two goods, A and B, in a manner where MUa = 15 and MUb = 75, and the Pa = $3 and the Pb = $15, then the consumer:

The law of diminishing marginal utility exists for the first four units of a good if they have marginal utilities of:

The income effect is the concept that changes in consumption of a good result from changes in government spending.

Consider a consumer who spends all income on only two goods: pizza and soda. An extra slice of pizza would give the consumer 60 extra utils, while an extra can of soda would give the consumer 20 extra utils. Pizza costs $3 per slice, and soda costs $1 per can. In this situation, the consumer:

Suppose you have spent your entire budget and for all the goods you purchase the marginal utilities per dollar spent are identical. Which of the following is true?

A fall in marginal utility reflects:

The substitution effect is the concept that changes in consumption of a good result from changes in the relative price of a jointly consumed good.

Exhibit 6A-5 Consumer Equilibrium ​ -Given the budget lines and indifference curves shown in Exhibit 6A-5, if the budget line shifts from AB to AC, then the:

A local restaurant offers an "all you can eat" ribs special. You pay $11.95, and then you can eat as many servings as you desire at no additional cost. It would follow that you will stop eating when:

Suppose that an individual consumes just two goods: Big Macs and milkshakes. In order to reach consumer equilibrium, the individual must arrange the consumption of Big Macs and milkshakes so that the:

Changes in relative prices create substitution effects.

Assume the price of good Y with its quantity measured on the vertical axis is $20 and the price of good X with its quantity measured on the horizontal axis is $5. If the consumer's budget is $100, then the absolute value of the slope of the budget line is:

If the price of a good decreases, the resulting increase in the quantity purchased decreases the marginal utility of the good.

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

Income Distribution, Poverty, and Discrimination

Antitrust and Regulation

Environmental Economics

International Trade and Finance

Economies in Transition

Growth and the

Filters

Exhibit 6A-7 Consumer equilibrium -As shown in Exhibit 6A-7, movement from consumer equilibrium at point A to point B is caused by a(n):

Suppose a consumer is spending all of his/her income on two goods, A and B, in a manner where MU_a = 15 and MU_b = 75, and the P_a = $3 and the P_b = $15, then the consumer:

Exhibit 6A-5 Consumer Equilibrium -Given the budget lines and indifference curves shown in Exhibit 6A-5, if the budget line shifts from AB to AC, then the: