Question 1

In measuring marginal utility, you look at the change in _________ utility.

Accepted Answer

The answer of In measuring marginal utility, you look at...

Question 2

The law of diminishing marginal utility implies that

Accepted Answer

A)  people will consume a variety of goods rather than just one good. 
B)  the demand for all goods will be elastic. 
C)  the demand for all goods will be inelastic. 
D)  people become worse off as they consume more. 
A)  people will consume a variety of goods rather than just one good. 
B)  the demand for all goods will be elastic. 
C)  the demand for all goods will be inelastic. 
D)  people become worse off as they consume more.

Question 3

If the price elasticity of demand is -1.5, how will total consumer expenditures on the good be affected in response to a price increase?

Accepted Answer

Total spen

Question 4

Luxury items, such as fine jewelry and collectible pieces of artwork, are not subject to the law of diminishing marginal utility.

Accepted Answer

A) True 
 B)False

Question 5

Another term for elasticity is

Accepted Answer

A)  reliability. 
B)  responsiveness. 
C)  variability. 
D)  consumer confidence. 
A)  reliability. 
B)  responsiveness. 
C)  variability. 
D)  consumer confidence.

Question 6

If you derive 80 units of total utility from playing 5 video games and 90 units of total utility from playing 6 video games, then the sixth video game provided you with 10 units of marginal utility.

Accepted Answer

A) True 
 B)False

Question 7

When total utility is maximized, marginal utility is _________.

Accepted Answer

The answer of When total utility is maximized, marginal utility...

Question 8

What must be true of the number calculated for elasticity in a given range in order for us to consider the demand to be unit-elastic?

Accepted Answer

It must be

Question 9

If an increase in price increases total consumer expenditures on a good, then we know that the demand is _________ within that price range.

Accepted Answer

The answer of If an increase in price increases total...

Question 10

What is true of marginal utility when total utility is maximized?

Accepted Answer

Marginal u

Question 11

If a 3 percent price increase leads to a 3 percent decrease in quantity demanded, then the price elasticity of demand is _________.

Accepted Answer

The answer of If a 3 percent price increase leads...

Question 12

Which of the following statements is TRUE?

Accepted Answer

A)  As the price of a good declines, your marginal utility from consuming it increases. 
B)  Marginal utility increases as you increase consumption of a good. 
C)  Saving money always provides more utility than spending it. 
D)  The marginal utility you expect to derive from a good determines whether you will be willing to buy it at a given price. 
A)  As the price of a good declines, your marginal utility from consuming it increases. 
B)  Marginal utility increases as you increase consumption of a good. 
C)  Saving money always provides more utility than spending it. 
D)  The marginal utility you expect to derive from a good determines whether you will be willing to buy it at a given price.

Question 13

If the price elasticity of demand is _________, then demand is perfectly inelastic.

Accepted Answer

The answer of If the price elasticity of demand is...

Question 14

A price increase will cause a relatively large drop in quantity demanded when

Accepted Answer

A)  demand is perfectly inelastic. 
B)  there is very little time allowed for consumers to react. 
C)  the consumer has easy access to a number of substitute goods. 
D)  the price elasticity of demand is 0. 
A)  demand is perfectly inelastic. 
B)  there is very little time allowed for consumers to react. 
C)  the consumer has easy access to a number of substitute goods. 
D)  the price elasticity of demand is 0.

Question 15

The price you are willing to pay for a good depends on the amount of marginal utility you expect to derive from consuming it.

Accepted Answer

A) True 
 B)False

Question 16

When we measure the price elasticity of demand, what two variables are changing?

Accepted Answer

Price and

Question 17

Table 4.5
  
-Using Table 4.5, when is total utility maximized?

Accepted Answer

A)  At six glasses of water 
B)  At five glasses of water 
C)  At four glasses of water 
D)  At three glasses of water 
A)  At six glasses of water 
B)  At five glasses of water 
C)  At four glasses of water 
D)  At three glasses of water

Question 18

Everyone who views the latest adventure movie in theaters will derive the same utility from seeing it.

Accepted Answer

A) True 
 B)False

Question 19

If consumers respond to a car dealer's 10 percent price cut by increasing the number of cars demanded by 20 percent, we would conclude that

Accepted Answer

A)  that demand for cars is inelastic. 
B)  that the price elasticity of demand is 2. 
C)  that the price elasticity of demand is 0.5. 
D)  that the car dealer lost sales revenue as a result of the price cut. 
A)  that demand for cars is inelastic. 
B)  that the price elasticity of demand is 2. 
C)  that the price elasticity of demand is 0.5. 
D)  that the car dealer lost sales revenue as a result of the price cut.

Question 20

If the price elasticity of demand is -2.0, how will quantity demanded change when the price decreases by 4 percent?

Accepted Answer

It will in

In measuring marginal utility, you look at the change in _________ utility.

The law of diminishing marginal utility implies that

If the price elasticity of demand is -1.5, how will total consumer expenditures on the good be affected in response to a price increase?

Luxury items, such as fine jewelry and collectible pieces of artwork, are not subject to the law of diminishing marginal utility.

Another term for elasticity is

If you derive 80 units of total utility from playing 5 video games and 90 units of total utility from playing 6 video games, then the sixth video game provided you with 10 units of marginal utility.

When total utility is maximized, marginal utility is _________.

What must be true of the number calculated for elasticity in a given range in order for us to consider the demand to be unit-elastic?

If an increase in price increases total consumer expenditures on a good, then we know that the demand is _________ within that price range.

What is true of marginal utility when total utility is maximized?

If a 3 percent price increase leads to a 3 percent decrease in quantity demanded, then the price elasticity of demand is _________.

Which of the following statements is TRUE?

If the price elasticity of demand is _________, then demand is perfectly inelastic.

A price increase will cause a relatively large drop in quantity demanded when

The price you are willing to pay for a good depends on the amount of marginal utility you expect to derive from consuming it.

When we measure the price elasticity of demand, what two variables are changing?

Table 4.5 -Using Table 4.5, when is total utility maximized?

Everyone who views the latest adventure movie in theaters will derive the same utility from seeing it.

If consumers respond to a car dealer's 10 percent price cut by increasing the number of cars demanded by 20 percent, we would conclude that

If the price elasticity of demand is -2.0, how will quantity demanded change when the price decreases by 4 percent?

Economics and the World of Scarcity

The United States Within the World Economy

Demand and Supply

The Firm: Production and Cost

The Two Extremes: Perfect Competition and Pure Monopoly

In Between the Extremes: Imperfect Competition

Market and Government Failures

Labor Economics

Unemployment, Inflation, and the Business Cycle

Aggregate Demand and Supply

The Fiscal Policy Approach to Stabilization

Money and Our Banking System

The Monetary Policy Approach to Stabilization

How Economies Grow

Trading With Other Nations

Financing World Trade

Filters

Exam 4: Consumer Decision Making and Consumer Reaction to Price Changes

In measuring marginal utility, you look at the change in _________ utility.

The law of diminishing marginal utility implies that

If the price elasticity of demand is -1.5, how will total consumer expenditures on the good be affected in response to a price increase?

Luxury items, such as fine jewelry and collectible pieces of artwork, are not subject to the law of diminishing marginal utility.

Another term for elasticity is

If you derive 80 units of total utility from playing 5 video games and 90 units of total utility from playing 6 video games, then the sixth video game provided you with 10 units of marginal utility.

When total utility is maximized, marginal utility is _________.

What must be true of the number calculated for elasticity in a given range in order for us to consider the demand to be unit-elastic?

If an increase in price increases total consumer expenditures on a good, then we know that the demand is _________ within that price range.

What is true of marginal utility when total utility is maximized?

If a 3 percent price increase leads to a 3 percent decrease in quantity demanded, then the price elasticity of demand is _________.

Which of the following statements is TRUE?

If the price elasticity of demand is _________, then demand is perfectly inelastic.

A price increase will cause a relatively large drop in quantity demanded when

The price you are willing to pay for a good depends on the amount of marginal utility you expect to derive from consuming it.

When we measure the price elasticity of demand, what two variables are changing?

Table 4.5 -Using Table 4.5, when is total utility maximized?

Everyone who views the latest adventure movie in theaters will derive the same utility from seeing it.

If consumers respond to a car dealer's 10 percent price cut by increasing the number of cars demanded by 20 percent, we would conclude that

If the price elasticity of demand is -2.0, how will quantity demanded change when the price decreases by 4 percent?

Economics and the World of Scarcity

The United States Within the World Economy

Demand and Supply

The Firm: Production and Cost

The Two Extremes: Perfect Competition and Pure Monopoly

In Between the Extremes: Imperfect Competition

Market and Government Failures

Labor Economics

Unemployment, Inflation, and the Business Cycle

Aggregate Demand and Supply

The Fiscal Policy Approach to Stabilization

Money and Our Banking System

The Monetary Policy Approach to Stabilization

How Economies Grow

Trading With Other Nations

Financing World Trade

Filters