Question 1

A consumer achieves the same level of utility along a given indifference curve.

Accepted Answer

A) True 
 B)False

Question 2

Use the following for questions 61-69.
    
-(Exhibit: Consumer Equilibrium 1) Assume that the price of good X is $2 per unit and the price of good Y is $1 per unit, and you consume 3 units of good X and 3 units of good Y.To maximize utility, assuming that the goods are divisible, you would consume:

Accepted Answer

A)  less of both X and Y. 
B)  more of both X and Y. 
C)  less of X and more of Y. 
D)  more of X and less of Y. 
A)  less of both X and Y. 
B)  more of both X and Y. 
C)  less of X and more of Y. 
D)  more of X and less of Y.

Question 3

Which of the following statements is (are) true?

Accepted Answer

A)  Consumers are constrained by a budget. 
B)  If a consumer decides to spend more on one good, he or she must decide to spend less on another good to satisfy the budget constraint. 
C)  The marginal decision rule states that an activity should be expanded if its marginal benefit exceeds its marginal cost. 
D)  All of the above statements are true. 
A)  Consumers are constrained by a budget. 
B)  If a consumer decides to spend more on one good, he or she must decide to spend less on another good to satisfy the budget constraint. 
C)  The marginal decision rule states that an activity should be expanded if its marginal benefit exceeds its marginal cost. 
D)  All of the above statements are true.

Question 4

Use the following for questions 61-69.
    
-(Exhibit: Consumer Equilibrium 1) Assume that the price of both goods X and Y is $1 per unit, and you have $7 of income to spend on both goods.To maximize utility, you would consume ________ units of X and _______ units of Y.

Accepted Answer

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

A consumer achieves the same level of utility along a given indifference curve.

Use the following for questions 61-69. -(Exhibit: Consumer Equilibrium 1) Assume that the price of good X is $2 per unit and the price of good Y is $1 per unit, and you consume 3 units of good X and 3 units of good Y.To maximize utility, assuming that the goods are divisible, you would consume:

Which of the following statements is (are) true?

Use the following for questions 61-69. -(Exhibit: Consumer Equilibrium 1) Assume that the price of both goods X and Y is $1 per unit, and you have $7 of income to spend on both goods.To maximize utility, you would consume __ units of X and _ units of Y.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

Production and Cost

Competitive Markets for Goods and Services

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

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Exam 7: The Analysis of Consumer Choice

A consumer achieves the same level of utility along a given indifference curve.

Use the following for questions 61-69. -(Exhibit: Consumer Equilibrium 1) Assume that the price of good X is $2 per unit and the price of good Y is $1 per unit, and you consume 3 units of good X and 3 units of good Y.To maximize utility, assuming that the goods are divisible, you would consume:

Which of the following statements is (are) true?

Use the following for questions 61-69. -(Exhibit: Consumer Equilibrium 1) Assume that the price of both goods X and Y is $1 per unit, and you have $7 of income to spend on both goods.To maximize utility, you would consume ________ units of X and _______ units of Y.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

Production and Cost

Competitive Markets for Goods and Services

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

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Use the following for questions 61-69. -(Exhibit: Consumer Equilibrium 1) Assume that the price of both goods X and Y is $1 per unit, and you have $7 of income to spend on both goods.To maximize utility, you would consume __ units of X and _ units of Y.