A) must be convex to the origin if consumers prefer more to less. B) will be upward-sloping if consumers consider one good a "bad." C) must be downward-sloping if both goods have positive prices. D) will be concave to the origin if the consumer's budget is fixed. E) will always have slope equal to -1. A) must be convex to the origin if consumers prefer more to less. B) will be upward-sloping if consumers consider one good a "bad." C) must be downward-sloping if both goods have positive prices. D) will be concave to the origin if the consumer's budget is fixed. E) will always have slope equal to -1.

Exam 3: Consumer Behavior and Rational Choice

Suppose Al is currently consuming five movies and two concerts per month.If his utility function is given by U = 15MC,where M represents the number of movies seen and C represents the number of concerts attended,Al's total utility is equal to:

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Question 1

Correct Answer:

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At equilibrium,the marginal rate of substitution describes:

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Question 2

Correct Answer:

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The accompanying table describes Ben's preferences over cake and ice cream.The utility from consumption of one good is independent of the consumption of the other.The price of cake is $10 per unit,and the price of ice cream is $4 per unit. If Ben has $50 to spend,the optimal combination of these goods is:

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Question 3

Correct Answer:

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A consumer buys 12 units of entertainment and 84 units of "all other things." The consumer's income elasticity of demand is greater than 1 for entertainment and less than 1 for all other things.If income increases by 10%,then the consumer's marginal rate of substitution at the utility-maximizing market bundle will:

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Question 4

Consider the following budget constraint.Dennis spends all his money on sweaters and sweatshirts.If the price of sweaters is $15,how much money does Dennis have in his budget?

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Question 5

Which of the following does not affect the shape of a consumer's indifference curves?

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Question 6

John spends his budget on food and clothing each month.His utility function is given by TU = 100C^0.25F ^0.75.The marginal rate of substitution of clothing for food is:

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Question 7

The marginal rate of substitution of X for Y is defined as:

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Question 8

Betty is investing in the stock market.She is choosing among a variety of stocks; each stock has an expected return and a level of risk attached.Betty likes higher returns and she likes risk.If we were to draw indifference curves for Betty over risk and expected return,they would be:

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Question 9

The following diagram represents the demand for trips to a local swimming pool during the summer.If the city subsidizes the swimming pool so that swimming is free,the number of people swimming each day will be:

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Question 10

Susan is investing in the stock market.She is choosing among a variety of stocks; each stock has an expected return and a level of risk attached.Susan likes higher returns,but she dislikes risk.If we were to draw indifference curves for Susan over risk and expected return,they would be:

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Question 11

A budget constraint:

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Question 12

Consider the following budget constraint.Dennis spends all his money on sweaters and sweatshirts.If the price of sweaters is $15,what is the price of sweatshirts?

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Question 13

Betty spends all her income on cheese and crackers.She finds that the marginal utility of cheese is 10 and the marginal utility of crackers is 15.The price of cheese is $5 per unit,and the price of crackers is $3 per unit.At this point,Betty:

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Question 14

In most cases,at the optimal consumption bundle:

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Question 15

An increase in a consumer's income:

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Question 16

Suppose Al is currently consuming four movies and four concerts per month.If his utility function is given by U = 15M^0.5C,where M represents the number of movies consumed and C represents the number of concerts attended,what is the marginal utility of the next concert Al will attend?

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Question 17

The marginal rate of substitution:

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Question 18

Jamie is considering the purchase of a new Ferrari for $100,000.Her income is $200,000,and her alternative is "all other things," which sell for $1 each.If all other things are plotted on the vertical axis and

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Question 19

Points along an indifference curve represent bundles of goods that:

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Question 20

Showing 1 - 20 of 52

Suppose Al is currently consuming five movies and two concerts per month.If his utility function is given by U = 15MC,where M represents the number of movies seen and C represents the number of concerts attended,Al's total utility is equal to:

At equilibrium,the marginal rate of substitution describes:

Consider the following budget constraint.Dennis spends all his money on sweaters and sweatshirts.If the price of sweaters is $15,how much money does Dennis have in his budget?

Which of the following does not affect the shape of a consumer's indifference curves?

John spends his budget on food and clothing each month.His utility function is given by TU = 100C^0.25F ^0.75.The marginal rate of substitution of clothing for food is:

The marginal rate of substitution of X for Y is defined as:

Betty is investing in the stock market.She is choosing among a variety of stocks; each stock has an expected return and a level of risk attached.Betty likes higher returns and she likes risk.If we were to draw indifference curves for Betty over risk and expected return,they would be:

The following diagram represents the demand for trips to a local swimming pool during the summer.If the city subsidizes the swimming pool so that swimming is free,the number of people swimming each day will be:

Susan is investing in the stock market.She is choosing among a variety of stocks; each stock has an expected return and a level of risk attached.Susan likes higher returns,but she dislikes risk.If we were to draw indifference curves for Susan over risk and expected return,they would be:

A budget constraint:

Consider the following budget constraint.Dennis spends all his money on sweaters and sweatshirts.If the price of sweaters is $15,what is the price of sweatshirts?

Betty spends all her income on cheese and crackers.She finds that the marginal utility of cheese is 10 and the marginal utility of crackers is 15.The price of cheese is $5 per unit,and the price of crackers is $3 per unit.At this point,Betty:

In most cases,at the optimal consumption bundle:

An increase in a consumer's income:

Suppose Al is currently consuming four movies and four concerts per month.If his utility function is given by U = 15M^0.5C,where M represents the number of movies consumed and C represents the number of concerts attended,what is the marginal utility of the next concert Al will attend?

The marginal rate of substitution:

Jamie is considering the purchase of a new Ferrari for $100,000.Her income is $200,000,and her alternative is "all other things," which sell for $1 each.If all other things are plotted on the vertical axis and

Points along an indifference curve represent bundles of goods that:

Introduction

Demand Theory

Estimating Demand Functions

Production Theory

The Analysis of Costs

Perfect Competition

Monopoly and Monopolistic Competition

Managerial Use of Price Discrimination

Bundling and Intrafirm Pricing

Oligopoly

Game Theory

Auctions

Risk Analysis

Principalagent Issues and Managerial Compensation

Adverse Selection

Government and Business

Optimization Techniques

Appendix Problems

Filters

Exam 3: Consumer Behavior and Rational Choice

Suppose Al is currently consuming five movies and two concerts per month.If his utility function is given by U = 15MC,where M represents the number of movies seen and C represents the number of concerts attended,Al's total utility is equal to:

At equilibrium,the marginal rate of substitution describes:

Consider the following budget constraint.Dennis spends all his money on sweaters and sweatshirts.If the price of sweaters is $15,how much money does Dennis have in his budget?

Which of the following does not affect the shape of a consumer's indifference curves?

John spends his budget on food and clothing each month.His utility function is given by TU = 100C0.25F 0.75.The marginal rate of substitution of clothing for food is:

The marginal rate of substitution of X for Y is defined as:

Betty is investing in the stock market.She is choosing among a variety of stocks; each stock has an expected return and a level of risk attached.Betty likes higher returns and she likes risk.If we were to draw indifference curves for Betty over risk and expected return,they would be:

The following diagram represents the demand for trips to a local swimming pool during the summer.If the city subsidizes the swimming pool so that swimming is free,the number of people swimming each day will be:

Susan is investing in the stock market.She is choosing among a variety of stocks; each stock has an expected return and a level of risk attached.Susan likes higher returns,but she dislikes risk.If we were to draw indifference curves for Susan over risk and expected return,they would be:

A budget constraint:

Consider the following budget constraint.Dennis spends all his money on sweaters and sweatshirts.If the price of sweaters is $15,what is the price of sweatshirts?

Betty spends all her income on cheese and crackers.She finds that the marginal utility of cheese is 10 and the marginal utility of crackers is 15.The price of cheese is $5 per unit,and the price of crackers is $3 per unit.At this point,Betty:

In most cases,at the optimal consumption bundle:

An increase in a consumer's income:

Suppose Al is currently consuming four movies and four concerts per month.If his utility function is given by U = 15M0.5C,where M represents the number of movies consumed and C represents the number of concerts attended,what is the marginal utility of the next concert Al will attend?

The marginal rate of substitution:

Jamie is considering the purchase of a new Ferrari for $100,000.Her income is $200,000,and her alternative is "all other things," which sell for $1 each.If all other things are plotted on the vertical axis and

Points along an indifference curve represent bundles of goods that:

Introduction

Demand Theory

Estimating Demand Functions

Production Theory

The Analysis of Costs

Perfect Competition

Monopoly and Monopolistic Competition

Managerial Use of Price Discrimination

Bundling and Intrafirm Pricing

Oligopoly

Game Theory

Auctions

Risk Analysis

Principalagent Issues and Managerial Compensation

Adverse Selection

Government and Business

Optimization Techniques

Appendix Problems

Filters

John spends his budget on food and clothing each month.His utility function is given by TU = 100C^0.25F ^0.75.The marginal rate of substitution of clothing for food is:

Suppose Al is currently consuming four movies and four concerts per month.If his utility function is given by U = 15M^0.5C,where M represents the number of movies consumed and C represents the number of concerts attended,what is the marginal utility of the next concert Al will attend?