Exam 7: Utility Maximization
Exam 1: Limits, Alternatives, and Choices210 Questions
Exam 2: The Market System and the Circular Flow109 Questions
Exam 3: Demand, Supply, and Market Equilibrium180 Questions
Exam 4: Market Failures: Public Goods and Externalities97 Questions
Exam 5: Governments Role and Government Failure126 Questions
Exam 6: Elasticity134 Questions
Exam 7: Utility Maximization106 Questions
Exam 8: Behavioral Economics153 Questions
Exam 9: Businesses and the Cost of Production159 Questions
Exam 10: Pure Competition in the Short Run115 Questions
Exam 11: Pure Competition in the Long Run69 Questions
Exam 12: Pure Monopoly119 Questions
Exam 13: Monopolistic Competition and Oligopoly192 Questions
Exam 14: Technology RD and Efficiency106 Questions
Exam 15: The Demand for Resources137 Questions
Exam 16: Wage Determination189 Questions
Exam 17: Rent Interest and Profit93 Questions
Exam 18: Natural Resource and Energy Economics165 Questions
Exam 19: Public Finance: Expenditures and Taxes128 Questions
Exam 20: Antitrust Policy and Regulation113 Questions
Exam 21: Agriculture: Economics and Policy85 Questions
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Answer the question on the basis of the following two schedules,which show the amounts of additional satisfaction (marginal utility)that a consumer would get from successive quantities of products J and K. Unit of J M 1 56 2 48 3 32 4 24 5 20 6 16 7 12 Unit of K M 1 32 2 28 3 24 4 20 5 12 6 10 7 8 Refer to the data.What level of total utility is realized from the equilibrium combination of J and K,if the consumer has a money income of $52 and the prices of J and K are $8 and $4 respectively?
(Multiple Choice)
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If the price of product X rises,then the resulting decline in the amount purchased will:
(Multiple Choice)
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When a consumer shifts purchases from X to Y,the marginal utility of X falls and the marginal utility of Y rises.
(True/False)
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A consumer who has a limited budget will maximize utility or satisfaction when the:
(Multiple Choice)
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Edith is buying products X and Y with her money income.Suppose her budget line shifts rightward (outward).This might be the result of:
(Multiple Choice)
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Answer the question on the basis of the following total utility data for products L and M.Assume that the prices of L and M are $3 and $4 respectively and that the consumer's income is $18. Units Total of L Utility 1 9 2 15 3 18 4 20 5 21 Units of M Total Utility 1 16 2 28 3 36 4 40 5 42 Refer to the data.What level of total utility does the rational consumer realize in equilibrium?
(Multiple Choice)
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Why do people tend to eat more at all-you-can-eat buffet restaurants than at restaurants where each item is purchased separately?
(Multiple Choice)
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Suppose that MUx/Px exceeds MUy/Py.To maximize utility,the consumer who is spending all her money income should buy:
(Multiple Choice)
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A consumer's demand curve for a product is downsloping because:
(Multiple Choice)
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The theory of consumer behavior assumes that consumers attempt to maximize:
(Multiple Choice)
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Answer the question on the basis of the following marginal utility data for products X and Y.Assume that the prices of X and Y are $4 and $2 respectively and that the consumer's income is $18. Units 1 2 3 4 5 6 Marginal 20 16 12 8 6 4 Units 1 2 3 4 5 6 Marginal 16 14 12 10 8 6
Refer to the data.Which of the following represents the demand schedule for X?
(Multiple Choice)
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Susie buys two goods: rounds of golf and massages.Suppose that the price of a round of golf is $20 and the price of a massage is $30.In a typical week,Susie will play two rounds of golf,getting 20 units of satisfaction from the second round.She normally buys three massages each week,with the third giving her 30 units of satisfaction.If she were to buy a fourth massage in a week,it would give her 20 units of satisfaction.If the price of massages is reduced to $15,which of the following outcomes might we expect to occur?
(Multiple Choice)
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(Last Word)All of the following would reduce property crime by increasing its "price," except:
(Multiple Choice)
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A consumer is maximizing her utility with a particular money income when:
(Multiple Choice)
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If money income increases and the prices of products A and B both increase,then the budget line:
(Multiple Choice)
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