Exam 6: Consumer Choice

The below table shows the average utility (in utils) obtained from the consumption of goods A andB. Table 6.3 -Refer to Table 6.3.The total utility of the third unit of A is _____ utils.

Suppose the price of beef declines by $0.50 per pound at the supermarket.Consumers of beef immediately increase their purchases of beef.This illustrates:

To economists,feelings such as peace,serenity,religious devotion,and self-esteem are captured in the concept known as _____.

Due to the law of diminishing marginal utility,_____.

The theory of bounded rationality states that it is likely for consumers to have perfect information.

When marginal utility is positive and increasing,then

Total utility is determined by:

As the price of a good increases,the marginal utility per dollar spent on that good will also increase.

Which of the following statements about marginal utility is correct?

The table given below reports the total utility derived by an individual from the consumption of different units of goods A,B,andC. Table 6.4 - Refer to Table 6.4.With an income of $10,the consumer would maximize utility by purchasing _____.

As a consumer eats additional pieces of pizza,total utility will _____.

The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility. Figure 6.1 -According to indifference curve I₁ in Figure 6.1,for each extra apple the consumer eats,he or she must simultaneously sacrifice ____ of listening to music to keep total utility constant.

The demand curve slopes downward because of:

When economists describe the theory of consumer choice,they

Suppose a friend gives you two pieces of gum,and you decide to have one piece now and save the other for tomorrow.You do this because:

The shorter the period of time being considered,the less rapidly will diminishing marginal utility set in.

When the price of a good changes,the substitution effect occurs because:

The table given below depicts the total utility derived from the consumption of a good. Table 6.1 -According to Table 6.1,which of the following units of the good yields disutility?

If MU_X / P_X < MU_Y / P_Y then this consumer:

The figure given below represents two indifference curves I₁ and I₂ of an individual. Figure 6.2 - Refer to Figure 6.2.At which point in the figure above will the consumer maximize satisfaction?