Consumer Equilbrium 1 \[\begin{array} { c c c c } \begin{array} { c } \text { Units } \\ \text { of } \\ \text { GoodX } \end{array} & \begin{array} { c } \text { Marginal } \\ \text { Utility } \\ \text { of GoodX } \end{array} & \begin{array} { c } \text { Units of } \\ \text { Good Y } \end{array} & \begin{array} { c } \text { Marginal Utility } \\ \text { of Good Y } \end{array} \\ \hline 1 & 20 & 1 & 12 \\ 2 & 16 & 2 & 10 \\ 3 & 12 & 3 & 8 \\ 4 & 8 & 4 & 6 \\ 5 & 4 & 5 & 4 \\ 6 & 0 & 6 & 2 \end{array}\] -(Exhibit: Consumer Equilibrium 1)Assume that the price of good X is $5 per unit, the price of good Y is $1 per unit, and you have $10 of income to spend on both goods.To maximize utility, you would consume _______ units of X and _______ units of Y.

A) 0; 1 B) 1; 5 C) 4; 6 D) 5; 5 A) 0; 1 B) 1; 5 C) 4; 6 D) 5; 5

Consumer Equilbrium 1 \[\begin{array} { c c c c } \begin{array} { c } \text { Units } \\ \text { of } \\ \text { GoodX } \end{array} & \begin{array} { c } \text { Marginal } \\ \text { Utility } \\ \text { of GoodX } \end{array} & \begin{array} { c } \text { Units of } \\ \text { Good Y } \end{array} & \begin{array} { c } \text { Marginal Utility } \\ \text { of Good Y } \end{array} \\ \hline 1 & 20 & 1 & 12 \\ 2 & 16 & 2 & 10 \\ 3 & 12 & 3 & 8 \\ 4 & 8 & 4 & 6 \\ 5 & 4 & 5 & 4 \\ 6 & 0 & 6 & 2 \end{array}\] -(Exhibit: Consumer Equilibrium 1)Assume that the price of both goods X and Y is $1 per unit, and you have $10 of income to spend on both goods.To maximize utility, you would consume ________ units of X and _______ units of Y.

A) 3; 4 B) 4; 3 C) 4; 6 D) 5; 5 A) 3; 4 B) 4; 3 C) 4; 6 D) 5; 5

Exam 7: Aggregate Demand and Aggregate Supply

-(Exhibit: Consumer Equilibrium 2)Assume the consumer is currently operating at point I.The consumer could gain more utility by choosing point _______ , all other things held unchanged.

(Multiple Choice)

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Question 61

If two combinations of two goods yield the same level of satisfaction, then they are:

(Multiple Choice)

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Question 62

The substitution and income effects reinforce each other for:

(Multiple Choice)

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Question 63

The budget constraint sets the limits placed on a consumer's choices regarding consumption.

(True/False)

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Question 64

Which of the following statements is (are)true?

(Multiple Choice)

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Question 65

The fact that a Giffen good might exist:

(Multiple Choice)

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Question 66

Consumer Equilbrium 1 Units of GoodX Marginal Utility of GoodX Units of Good Y Marginal Utility of Good Y 1 20 1 12 2 16 2 10 3 12 3 8 4 8 4 6 5 4 5 4 6 0 6 2 -(Exhibit: Consumer Equilibrium 1)Assume that the price of good X is $5 per unit, the price of good Y is $1 per unit, and you have $10 of income to spend on both goods.To maximize utility, you would consume _ units of X and _ units of Y.

(Multiple Choice)

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Question 67

-If the combination of two goods is a point of tangency between the budget line and an indifference curve, then:

(Multiple Choice)

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Question 68

Jill Smith, a careful maximizer of utility, consumes only two goods, peanut butter and ice cream.She had just achieved the utility-maximizing solution in her consumption of the two goods when the price of peanut butter rose.As she adjusts to this event, she will consume:

(Multiple Choice)

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Question 69

A decreasing marginal rate of substitution indicates that an indifference curve is:

(Multiple Choice)

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Question 70

A consumer's spending is restricted because of:

(Multiple Choice)

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Question 71

In the case of Giffen goods, the income effect dominates the substitution effect.

(True/False)

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Question 72

Whatever the time period involved, a consumer's spending will be _ by his or her _ .

(Multiple Choice)

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Question 73

According to the utility model of consumer demand, the law of diminishing marginal utility indicates that the demand curve is:

(Multiple Choice)

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Question 74

The income effect of a price change is named the way it is because it refers to a change in money income.

(True/False)

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Question 75

Consumer Equilbrium 1 Units of GoodX Marginal Utility of GoodX Units of Good Y Marginal Utility of Good Y 1 20 1 12 2 16 2 10 3 12 3 8 4 8 4 6 5 4 5 4 6 0 6 2 -(Exhibit: Consumer Equilibrium 1)Assume that the price of both goods X and Y is $1 per unit, and you have $10 of income to spend on both goods.To maximize utility, you would consume __ units of X and _ units of Y.

(Multiple Choice)

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Question 76

In the case of an inferior good, _ falls when income _ .

(Multiple Choice)

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Question 77

In the Case in Point on P.O.W.camps, the point was made that:

(Multiple Choice)

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Question 78

In indifference curve analysis, a line that shows all combinations of two goods a consumer can buy is called a(n):

(Multiple Choice)

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Question 79

The amount by which total utility increases when an additional unit of a good is consumed is called ________ utility.

(Multiple Choice)

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Question 80

Exam 7: Aggregate Demand and Aggregate Supply

-(Exhibit: Consumer Equilibrium 2)Assume the consumer is currently operating at point I.The consumer could gain more utility by choosing point _______ , all other things held unchanged.

If two combinations of two goods yield the same level of satisfaction, then they are:

The substitution and income effects reinforce each other for:

The budget constraint sets the limits placed on a consumer's choices regarding consumption.

Which of the following statements is (are)true?

The fact that a Giffen good might exist:

-If the combination of two goods is a point of tangency between the budget line and an indifference curve, then:

Jill Smith, a careful maximizer of utility, consumes only two goods, peanut butter and ice cream.She had just achieved the utility-maximizing solution in her consumption of the two goods when the price of peanut butter rose.As she adjusts to this event, she will consume:

A decreasing marginal rate of substitution indicates that an indifference curve is:

A consumer's spending is restricted because of:

In the case of Giffen goods, the income effect dominates the substitution effect.

Whatever the time period involved, a consumer's spending will be _______ by his or her _______ .

According to the utility model of consumer demand, the law of diminishing marginal utility indicates that the demand curve is:

The income effect of a price change is named the way it is because it refers to a change in money income.

In the case of an inferior good, _______ falls when income _______ .

In the Case in Point on P.O.W.camps, the point was made that:

In indifference curve analysis, a line that shows all combinations of two goods a consumer can buy is called a(n):

The amount by which total utility increases when an additional unit of a good is consumed is called ________ utility.

Economics: the Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Demand and Supply

Macroeconomics: the Big Picture

Measuring Total Output and Income

Economic Growth

The Nature and Creation of Money

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Inflation and Unemployment

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Macroeconomics: the Big Picture

Measuring Total Income and Output

Aggregate Demand and Aggregate Supply

Economic Growth

The Nature and Creation of Money

Financial Markets and the Economy

Monetary Policy and the Fed

Government and Fiscal Policy

Consumption and the Aggregate Expenditures Model

Investment and Economic Activity

Net Exports and International Finance

Macro Inflation and Unemployment

Macro a Brief History of Macroeconomic Thought and Policy

Economic Development

Socialist Economies in Transition

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Whatever the time period involved, a consumer's spending will be _ by his or her _ .

In the case of an inferior good, _ falls when income _ .