Question 1

As marginal utility increases,total utility

Accepted Answer

A)  increases by the same amount. 
B)  decreases by the same amount. 
C)  increases by a multiplicative of marginal utility. 
D)  decreases at an increasing rate. 
E)  increases at an increasing rate. 
A)  increases by the same amount. 
B)  decreases by the same amount. 
C)  increases by a multiplicative of marginal utility. 
D)  decreases at an increasing rate. 
E)  increases at an increasing rate.

Question 2

Cell phone companies rely on the ________ of conversation to make unlimited night and weekend minutes on cell phone plans profitable.

Accepted Answer

A)  real-income effect 
B)  consumer optimum 
C)  marginal utility 
D)  diminishing marginal utility 
E)  substitution effect 
A)  real-income effect 
B)  consumer optimum 
C)  marginal utility 
D)  diminishing marginal utility 
E)  substitution effect

Question 3

The marginal rate of substitution is obtained from two points ________ the indifference curve.

Accepted Answer

A)  along 
B)  to the right of 
C)  to the left of 
D)  tangent to 
E)  above and below 
A)  along 
B)  to the right of 
C)  to the left of 
D)  tangent to 
E)  above and below

Question 4

Refer to the following table to answer the following questions:
  
-The marginal utility of the third unit is

Accepted Answer

A)  60 utils. 
B)  80 utils. 
C)  90 utils. 
D)  20 utils. 
E)  10 utils. 
A)  60 utils. 
B)  80 utils. 
C)  90 utils. 
D)  20 utils. 
E)  10 utils.

Question 5

Graphically,total utility can be determined by the amount of

Accepted Answer

A)  deadweight loss enjoyed from a transaction. 
B)  producer surplus enjoyed from a transaction. 
C)  consumer surplus enjoyed from a transaction plus the amount of producer surplus enjoyed from a transaction. 
D)  consumer surplus enjoyed from a transaction. 
E)  consumer surplus enjoyed from a transaction minus the amount of producer surplus enjoyed from a transaction. 
A)  deadweight loss enjoyed from a transaction. 
B)  producer surplus enjoyed from a transaction. 
C)  consumer surplus enjoyed from a transaction plus the amount of producer surplus enjoyed from a transaction. 
D)  consumer surplus enjoyed from a transaction. 
E)  consumer surplus enjoyed from a transaction minus the amount of producer surplus enjoyed from a transaction.

Question 6

When a price changes,there are two effects: the ________ effect and the ________effect.

Accepted Answer

A)  real-income; consumer optimum 
B)  substitution; marginal utility 
C)  real-income; substitution 
D)  marginal utility; substitution 
E)  consumer optimum; substitution 
A)  real-income; consumer optimum 
B)  substitution; marginal utility 
C)  real-income; substitution 
D)  marginal utility; substitution 
E)  consumer optimum; substitution

Question 7

If the price of a good increases,the marginal utility per dollar spent ________ and consumers buy ________ of the good.

Accepted Answer

A)  remains the same; more 
B)  remains the same; less 
C)  decreases; more 
D)  decreases; less 
E)  increases; more 
A)  remains the same; more 
B)  remains the same; less 
C)  decreases; more 
D)  decreases; less 
E)  increases; more

Question 8

In July 2012,it cost $125 to purchase a ticket to visit the parks at Disneyland for one day.A five-day pass to the same parks cost only $290.Disneyland charges less for the additional days because of

Accepted Answer

A)  the real-income effect. 
B)  diminishing marginal utility. 
C)  marginal utility. 
D)  the substitution effect. 
E)  the consumer optimum. 
A)  the real-income effect. 
B)  diminishing marginal utility. 
C)  marginal utility. 
D)  the substitution effect. 
E)  the consumer optimum.

Question 9

The substitution effect and the real-income effect are two effects that happen when

Accepted Answer

A)  marginal utility increases. 
B)  marginal utility decreases. 
C)  total utility decreases. 
D)  a price changes. 
E)  total utility increases. 
A)  marginal utility increases. 
B)  marginal utility decreases. 
C)  total utility decreases. 
D)  a price changes. 
E)  total utility increases.

Question 10

When making personal buying decisions,two important issues to consider are the

Accepted Answer

A)  satisfaction you receive from the choices that you make and the satisfaction others receive from your choices. 
B)  satisfaction others receive from your choices and the constraints of a limited budget. 
C)  shape of your indifference curve and the satisfaction you receive from the choices that you make. 
D)  satisfaction you receive from the choices that you make and the constraints of a limited budget. 
E)  satisfaction you receive from the choices that you make and the future value of the purchases that you make. 
A)  satisfaction you receive from the choices that you make and the satisfaction others receive from your choices. 
B)  satisfaction others receive from your choices and the constraints of a limited budget. 
C)  shape of your indifference curve and the satisfaction you receive from the choices that you make. 
D)  satisfaction you receive from the choices that you make and the constraints of a limited budget. 
E)  satisfaction you receive from the choices that you make and the future value of the purchases that you make.

Question 11

To reach the consumer optimum for two goods,the

Accepted Answer

A)  ratio of marginal utility to price for both goods must be equal. 
B)  marginal utility for both goods must be equal. 
C)  total utility for both goods must be equal. 
D)  ratio of total utility to price for both goods must be equal. 
E)  price of both goods must be equal. 
A)  ratio of marginal utility to price for both goods must be equal. 
B)  marginal utility for both goods must be equal. 
C)  total utility for both goods must be equal. 
D)  ratio of total utility to price for both goods must be equal. 
E)  price of both goods must be equal.

Question 12

________ is the sum of the satisfaction gained from all additional units of consumption.

Accepted Answer

A)  Marginal utility 
B)  Total utility 
C)  Partial additive utility 
D)  Diminishing utility 
E)  Consumptive utility 
A)  Marginal utility 
B)  Total utility 
C)  Partial additive utility 
D)  Diminishing utility 
E)  Consumptive utility

Question 13

When presented with two choices for afternoon entertainment,Riana has a clear favorite: going to the movies provides her with 40 utils,while attending a baseball game provides 32 utils.The price for both tickets is $5,causing Riana to choose the movies.What price for a baseball game ticket would cause Riana to choose that instead?

Accepted Answer

A)  $3.99 
B)  $4.00 
C)  $4.01 
D)  $1.60 
E)  The ticket price is irrelevant because the marginal utility will always be greater. 
A)  $3.99 
B)  $4.00 
C)  $4.01 
D)  $1.60 
E)  The ticket price is irrelevant because the marginal utility will always be greater.

Question 14

Most newspaper companies allow consumers to purchase copies of the day's paper by putting money into a machine and taking out a paper.Why are newspaper companies typically not worried about consumers putting in 75 cents and taking more than one paper?

Accepted Answer

A second copy of the same paper has a va

Question 15

The reality of consumer optimum means making choices in countless purchases in order to enjoy

Accepted Answer

A)  the same standard of living. 
B)  the same level of satisfaction in each. 
C)  increasing degrees of satisfaction. 
D)  a balanced budget. 
E)  roughly the same utility per dollar spent. 
A)  the same standard of living. 
B)  the same level of satisfaction in each. 
C)  increasing degrees of satisfaction. 
D)  a balanced budget. 
E)  roughly the same utility per dollar spent.

Question 16

Anon is a graduate student at Lock Haven University studying human behavior.Three subjects,Felicity,Terrance,and Lola,listed their utility for pineapple and watermelon.Anon believes he will be able to tell which subject likes pineapple the most by referring to the levels of utility each one reported.His adviser,Dr.Util,tells him his research is flawed.Explain why Dr.Util feels this way.

Accepted Answer

Anon is assuming that everyone measures

Question 17

When marginal utility is positive,total utility

Accepted Answer

A)  increases. 
B)  decreases. 
C)  can increase or decrease. 
D)  stays the same. 
E)  equals zero. 
A)  increases. 
B)  decreases. 
C)  can increase or decrease. 
D)  stays the same. 
E)  equals zero.

Question 18

Umberto gets 20 utils from consuming guacamole and 15 utils from consuming salsa; Fabian gets 30 utils from the same guacamole and 15 utils from salsa.Given this information,a researcher can conclude that

Accepted Answer

A)  Fabian gets more satisfaction from both guacamole and salsa. 
B)  Umberto will get more satisfaction from consuming one more unit of guacamole than Fabian will. 
C)  Umberto and Fabian prefer to consume a combination of guacamole and salsa. 
D)  Umberto and Fabian both prefer guacamole to salsa. 
E)  Umberto will get more satisfaction from consuming one more unit of salsa than Fabian will. 
A)  Fabian gets more satisfaction from both guacamole and salsa. 
B)  Umberto will get more satisfaction from consuming one more unit of guacamole than Fabian will. 
C)  Umberto and Fabian prefer to consume a combination of guacamole and salsa. 
D)  Umberto and Fabian both prefer guacamole to salsa. 
E)  Umberto will get more satisfaction from consuming one more unit of salsa than Fabian will.

Question 19

When marginal utility declines as consumption increases,the consumer is experiencing

Accepted Answer

A)  diminishing marginal utility. 
B)  the real-income effect. 
C)  marginal utility. 
D)  the substitution effect. 
E)  the consumer optimum. 
A)  diminishing marginal utility. 
B)  the real-income effect. 
C)  marginal utility. 
D)  the substitution effect. 
E)  the consumer optimum.

Question 20

The combination of goods and services that maximizes utility for a given income is called

Accepted Answer

A)  diminishing marginal utility. 
B)  the real-income effect. 
C)  marginal utility. 
D)  the substitution effect. 
E)  the consumer optimum. 
A)  diminishing marginal utility. 
B)  the real-income effect. 
C)  marginal utility. 
D)  the substitution effect. 
E)  the consumer optimum.

As marginal utility increases,total utility

Cell phone companies rely on the ________ of conversation to make unlimited night and weekend minutes on cell phone plans profitable.

The marginal rate of substitution is obtained from two points ________ the indifference curve.

Refer to the following table to answer the following questions: -The marginal utility of the third unit is

Graphically,total utility can be determined by the amount of

When a price changes,there are two effects: the effect and the effect.

If the price of a good increases,the marginal utility per dollar spent and consumers buy of the good.

In July 2012,it cost $125 to purchase a ticket to visit the parks at Disneyland for one day.A five-day pass to the same parks cost only $290.Disneyland charges less for the additional days because of

The substitution effect and the real-income effect are two effects that happen when

When making personal buying decisions,two important issues to consider are the

To reach the consumer optimum for two goods,the

________ is the sum of the satisfaction gained from all additional units of consumption.

Most newspaper companies allow consumers to purchase copies of the day's paper by putting money into a machine and taking out a paper.Why are newspaper companies typically not worried about consumers putting in 75 cents and taking more than one paper?

The reality of consumer optimum means making choices in countless purchases in order to enjoy

When marginal utility is positive,total utility

Umberto gets 20 utils from consuming guacamole and 15 utils from consuming salsa; Fabian gets 30 utils from the same guacamole and 15 utils from salsa.Given this information,a researcher can conclude that

When marginal utility declines as consumption increases,the consumer is experiencing

The combination of goods and services that maximizes utility for a given income is called

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Elasticity

Market Outcomes and Tax Incidence

Price Controls

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

The Demand and Supply of Resources

Income,inequality,and Poverty

Behavioral Economics and Risk Taking

Health Insurance and Health Care

International Trade

Filters

Exam 16: Consumer Choice

As marginal utility increases,total utility

Cell phone companies rely on the ________ of conversation to make unlimited night and weekend minutes on cell phone plans profitable.

The marginal rate of substitution is obtained from two points ________ the indifference curve.

Refer to the following table to answer the following questions: -The marginal utility of the third unit is

Graphically,total utility can be determined by the amount of

When a price changes,there are two effects: the ________ effect and the ________effect.

If the price of a good increases,the marginal utility per dollar spent ________ and consumers buy ________ of the good.

In July 2012,it cost $125 to purchase a ticket to visit the parks at Disneyland for one day.A five-day pass to the same parks cost only $290.Disneyland charges less for the additional days because of

The substitution effect and the real-income effect are two effects that happen when

When making personal buying decisions,two important issues to consider are the

To reach the consumer optimum for two goods,the

________ is the sum of the satisfaction gained from all additional units of consumption.

Most newspaper companies allow consumers to purchase copies of the day's paper by putting money into a machine and taking out a paper.Why are newspaper companies typically not worried about consumers putting in 75 cents and taking more than one paper?

The reality of consumer optimum means making choices in countless purchases in order to enjoy

When marginal utility is positive,total utility

Umberto gets 20 utils from consuming guacamole and 15 utils from consuming salsa; Fabian gets 30 utils from the same guacamole and 15 utils from salsa.Given this information,a researcher can conclude that

When marginal utility declines as consumption increases,the consumer is experiencing

The combination of goods and services that maximizes utility for a given income is called

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Elasticity

Market Outcomes and Tax Incidence

Price Controls

Market Inefficiencies: Externalities and Public Goods

Business Costs and Production

Firms in a Competitive Market

Understanding Monopoly

Price Discrimination

Monopolistic Competition and Advertising

Oligopoly and Strategic Behavior

The Demand and Supply of Resources

Income,inequality,and Poverty

Behavioral Economics and Risk Taking

Health Insurance and Health Care

International Trade

Filters

When a price changes,there are two effects: the effect and the effect.

If the price of a good increases,the marginal utility per dollar spent and consumers buy of the good.