Question 1

-Refer to Figure 7.2.The marginal utility of the first video game rental is

Accepted Answer

A)  8. 
B)  10. 
C)  25. 
D)  40. 
A)  8. 
B)  10. 
C)  25. 
D)  40.

Question 2

The utility-maximizing rule says that a person will maximize utility by choosing goods so that the marginal utility for each good is equal.

Accepted Answer

A) True 
 B)False

Question 3

-Refer to Figure 7.2.The ________ movie rental has a marginal utility of zero.

Accepted Answer

A)  first 
B)  second 
C)  third 
D)  fourth 
A)  first 
B)  second 
C)  third 
D)  fourth

Question 4

Table 7.7
-Refer to Table 7.7.If the price of a soda is $2,the price of a hamburger is $6,and George has $20 of income,George's utility maximizing combination of sodas and hamburgers per day is

Accepted Answer

A)  4 soda and 2 hamburgers. 
B)  1 sodas and 3 hamburger. 
C)  4 sodas and 1 hamburgers. 
D)  3 sodas and 4 hamburgers. 
A)  4 soda and 2 hamburgers. 
B)  1 sodas and 3 hamburger. 
C)  4 sodas and 1 hamburgers. 
D)  3 sodas and 4 hamburgers.

Question 5

A budget line connects the combinations of two goods that exhaust a consumer's budget.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following have economists and psychologists identified as types of puzzling consumer behavior?

Accepted Answer

A)  Spending choices sometimes depend on the source of income. 
B)  The willingness to pay for a product sometimes is affected by irrelevant information. 
C)  Product choices are sometimes influenced by irrelevant alternatives. 
D)  all of the above 
A)  Spending choices sometimes depend on the source of income. 
B)  The willingness to pay for a product sometimes is affected by irrelevant information. 
C)  Product choices are sometimes influenced by irrelevant alternatives. 
D)  all of the above

Question 7

-Refer to Figure 7.3.The total utility from consuming 4 slices of pie is

Accepted Answer

A)  2. 
B)  8. 
C)  15. 
D)  17. 
A)  2. 
B)  8. 
C)  15. 
D)  17.

Question 8

-Refer to Figure 7.1.The marginal utility of the third movie rental is

Accepted Answer

A)  1. 
B)  3. 
C)  9.33. 
D)  28. 
A)  1. 
B)  3. 
C)  9.33. 
D)  28.

Question 9

At Hillary's current level of consumption,MUₓ/Pₓ = 18 and MUᵧ/Pᵧ = 15.Hillary can increase her utility by increasing her consumption of good X and reducing her consumption of good Y.

Accepted Answer

A) True 
 B)False

Question 10

If the marginal utility per dollar is not the same for each good,the consumer could ________ her utility by spending ________ on goods for which the marginal utility per dollar is higher.

Accepted Answer

A)  increase; more 
B)  increase; less 
C)  decrease; more 
D)  minimize; more 
A)  increase; more 
B)  increase; less 
C)  decrease; more 
D)  minimize; more

Question 11

Table 7.4
-Table 7.4 shows how the total utility that Zach derives from eating candy bars changes as he consumes more and more candy bars each day.Fill in the table.Do the numbers in the table support the law of diminishing marginal utility? Explain.

Accepted Answer

Yes,the numbers in the table s

Question 12

What is meant by utility?

Accepted Answer

Utility is a measure

Question 13

What is the law of diminishing marginal utility?

Accepted Answer

The law of diminishing margina

Question 14

The notion of anchoring helps explain the large effects of "sales" for retail goods.

Accepted Answer

A) True 
 B)False

Question 15

According to the law of diminishing marginal utility,

Accepted Answer

A)  as the consumption of a particular good increases, marginal utility increases. 
B)  as the consumption of a particular good increases, marginal utility decreases. 
C)  total utility is always negative. 
D)  B and C are correct 
A)  as the consumption of a particular good increases, marginal utility increases. 
B)  as the consumption of a particular good increases, marginal utility decreases. 
C)  total utility is always negative. 
D)  B and C are correct

Question 16

Table 7.8
-Refer to Table 7.8.Jessy spends no more than $75 per month on movies and meals out.Movies cost $8 each and a meal out costs $15.If Jessy wants to maximize her utility,she should choose ________ movies and ________ meals out.

Accepted Answer

A)  0; 5 
B)  1; 4 
C)  4; 2 
D)  3; 3 
A)  0; 5 
B)  1; 4 
C)  4; 2 
D)  3; 3

Question 17

An increase in price would generate substitution and income effects that decrease the quantity demanded of a particular good.

Accepted Answer

A) True 
 B)False

Question 18

If marginal utility is decreasing,consuming an additional unit of a product will cause total utility to decline.

Accepted Answer

A) True 
 B)False

Question 19

Total utility is the additional satisfaction received from consuming an additional unit of a product.

Accepted Answer

A) True 
 B)False

Question 20

Holding real income constant,the change in quantity consumed that is caused by a change in the relative price of the good describes the

Accepted Answer

A)  law of diminishing returns. 
B)  substitution effect. 
C)  income effect. 
D)  law of supply. 
A)  law of diminishing returns. 
B)  substitution effect. 
C)  income effect. 
D)  law of supply.

-Refer to Figure 7.2.The marginal utility of the first video game rental is

The utility-maximizing rule says that a person will maximize utility by choosing goods so that the marginal utility for each good is equal.

-Refer to Figure 7.2.The ________ movie rental has a marginal utility of zero.

Table 7.7 -Refer to Table 7.7.If the price of a soda is $2,the price of a hamburger is $6,and George has $20 of income,George's utility maximizing combination of sodas and hamburgers per day is

A budget line connects the combinations of two goods that exhaust a consumer's budget.

Which of the following have economists and psychologists identified as types of puzzling consumer behavior?

-Refer to Figure 7.3.The total utility from consuming 4 slices of pie is

-Refer to Figure 7.1.The marginal utility of the third movie rental is

At Hillary's current level of consumption,MUₓ/Pₓ = 18 and MUᵧ/Pᵧ = 15.Hillary can increase her utility by increasing her consumption of good X and reducing her consumption of good Y.

If the marginal utility per dollar is not the same for each good,the consumer could her utility by spending on goods for which the marginal utility per dollar is higher.

Table 7.4 -Table 7.4 shows how the total utility that Zach derives from eating candy bars changes as he consumes more and more candy bars each day.Fill in the table.Do the numbers in the table support the law of diminishing marginal utility? Explain.

What is meant by utility?

What is the law of diminishing marginal utility?

The notion of anchoring helps explain the large effects of "sales" for retail goods.

According to the law of diminishing marginal utility,

Table 7.8 -Refer to Table 7.8.Jessy spends no more than $75 per month on movies and meals out.Movies cost $8 each and a meal out costs $15.If Jessy wants to maximize her utility,she should choose movies and meals out.

An increase in price would generate substitution and income effects that decrease the quantity demanded of a particular good.

If marginal utility is decreasing,consuming an additional unit of a product will cause total utility to decline.

Total utility is the additional satisfaction received from consuming an additional unit of a product.

Holding real income constant,the change in quantity consumed that is caused by a change in the relative price of the good describes the

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 7: Consumer Choice: Utility Theory and Insights From Neuroscience

-Refer to Figure 7.2.The marginal utility of the first video game rental is

The utility-maximizing rule says that a person will maximize utility by choosing goods so that the marginal utility for each good is equal.

-Refer to Figure 7.2.The ________ movie rental has a marginal utility of zero.

Table 7.7 -Refer to Table 7.7.If the price of a soda is $2,the price of a hamburger is $6,and George has $20 of income,George's utility maximizing combination of sodas and hamburgers per day is

A budget line connects the combinations of two goods that exhaust a consumer's budget.

Which of the following have economists and psychologists identified as types of puzzling consumer behavior?

-Refer to Figure 7.3.The total utility from consuming 4 slices of pie is

-Refer to Figure 7.1.The marginal utility of the third movie rental is

At Hillary's current level of consumption,MUₓ/Pₓ = 18 and MUᵧ/Pᵧ = 15.Hillary can increase her utility by increasing her consumption of good X and reducing her consumption of good Y.

If the marginal utility per dollar is not the same for each good,the consumer could ________ her utility by spending ________ on goods for which the marginal utility per dollar is higher.

Table 7.4 -Table 7.4 shows how the total utility that Zach derives from eating candy bars changes as he consumes more and more candy bars each day.Fill in the table.Do the numbers in the table support the law of diminishing marginal utility? Explain.

What is meant by utility?

What is the law of diminishing marginal utility?

The notion of anchoring helps explain the large effects of "sales" for retail goods.

According to the law of diminishing marginal utility,

Table 7.8 -Refer to Table 7.8.Jessy spends no more than $75 per month on movies and meals out.Movies cost $8 each and a meal out costs $15.If Jessy wants to maximize her utility,she should choose ________ movies and ________ meals out.

An increase in price would generate substitution and income effects that decrease the quantity demanded of a particular good.

If marginal utility is decreasing,consuming an additional unit of a product will cause total utility to decline.

Total utility is the additional satisfaction received from consuming an additional unit of a product.

Holding real income constant,the change in quantity consumed that is caused by a change in the relative price of the good describes the

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

Public Goods and Public Choice

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

If the marginal utility per dollar is not the same for each good,the consumer could her utility by spending on goods for which the marginal utility per dollar is higher.

Table 7.8 -Refer to Table 7.8.Jessy spends no more than $75 per month on movies and meals out.Movies cost $8 each and a meal out costs $15.If Jessy wants to maximize her utility,she should choose movies and meals out.