Question 1

If you were in the middle of the desert,came upon a lemonade stand,and paid $20 for a glass of lemonade,

Accepted Answer

A) you would definitely be overpaying. 
B) you would have gotten at least $20 of utility from the lemonade. 
C) there is no way to determine whether or not you overpaid. 
A) you would definitely be overpaying. 
B) you would have gotten at least $20 of utility from the lemonade. 
C) there is no way to determine whether or not you overpaid.

Question 2

Daniel Zimiles will buy more and more baseball cards until

Accepted Answer

A) the total utility of cards begins to fall. 
B) the total utility of the cards falls to zero. 
C) the marginal utility of the cards starts to fall. 
D) the marginal utility of the cards falls to the price of the cards. 
E) the marginal utility of the cards falls to zero. 
A) the total utility of cards begins to fall. 
B) the total utility of the cards falls to zero. 
C) the marginal utility of the cards starts to fall. 
D) the marginal utility of the cards falls to the price of the cards. 
E) the marginal utility of the cards falls to zero.

Question 3

Table: Demand and Utility Schedules for packs of scented candles $$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 8 & 1 & & \
\hline \$ 7 & 2 & & \
\hline \$ 6 & 3 & & \
\hline \$ 5 & 4 & & \
\hline \$ 4 & 5 & & \
\hline
\end{array}$$
-If the price were $5 each,her consumer surplus would be

Accepted Answer

A) $31. 
B) $20. 
C) $18. 
D) $7. 
E) $6. 
A) $31. 
B) $20. 
C) $18. 
D) $7. 
E) $6.

Question 4

Statement I: If you know a person's demand schedule for product J,you can derive her marginal utility schedule for product J.
Statement II: If Bob buys 10 Sidney Sheldon novels,he is enjoying a consumer surplus.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 5

The concept of consumer surplus was developed by the English economist __________________.

Accepted Answer

The answer of The concept of consumer surplus was developed...

Question 6

Marginal utility is the ______________.

Accepted Answer

additional utility d

Question 7

A person who bought four hotdogs would be enjoying a __________________.

Accepted Answer

The answer of A person who bought four hotdogs would...

Question 8

Table-Demand and Utility Table for action figures $$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 14 & 1 & & \
\hline \$ 12 & 2 & & \
\hline \$ 10 & 3 & & \
\hline \$ 8 & 4 & & \
\hline \$ 6 & 5 & & \
\hline
\end{array}$$
-The marginal utility of his third action figure would be

Accepted Answer

A) $10. 
B) $12. 
C) $14. 
D) $36. 
A) $10. 
B) $12. 
C) $14. 
D) $36.

Question 9

When marginal utility is negative,total utility is

Accepted Answer

A) rising. 
B) falling. 
C) zero. 
D) negative. 
A) rising. 
B) falling. 
C) zero. 
D) negative.

Question 10

The water-diamond paradox is resolved once we realize that the marginal utility of the last gallon of water consumed is very ____ and the marginal utility of the last diamond carat purchased is very ___.

Accepted Answer

A) low;low 
B) high;high 
C) high;low 
D) low;high 
A) low;low 
B) high;high 
C) high;low 
D) low;high

Question 11

Karen O'Brien has the demand schedule for grapefruit shown in the table below.
A)Her total utility for four grapefruits would be ____.
B)Her marginal utility from the fifth grapefruit would be ____.
C)If the price were 40 cents,her consumer surplus would be ____.
$$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demand } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 1.00 & 1 & & \
\hline \$ .70 & 2 & & \
\hline \$ .50 & 3 & & \
\hline \$ .40 & 4 & & \
\hline \$ .25 & 5 & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | c | c | c | c | }

Question 12

According to utility theory you would consume more and more of a service until your marginal utility

Accepted Answer

A) fell to the level of price. 
B) rose to the level of price. 
C) was less than price. 
D) was more than price. 
A) fell to the level of price. 
B) rose to the level of price. 
C) was less than price. 
D) was more than price.

Question 13

Suppose this table shows your demand schedule for tee shirts.(a)What is your total utility from three tee shirts? (b)What is your marginal utility from the third tee shirt? (c)If price were $2,how much would your consumer surplus be?
$$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 6 & 1 & & \
\hline \$ 5 & 2 & & \
\hline \$ 4 & 3 & & \
\hline \$ 3 & 4 & & \
\hline \$ 2 & 5 & & \
\hline \$ 1 & 6 & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | c | c | c | c | }

Question 14

Statement I: Utility is measured by how much a person is willing to pay for a good or service.
Statement II: If you buy four units of a good,your total utility is higher than if you purchased only three units.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 15

As people buy more and more of a service,their consumer surplus

Accepted Answer

A) increases. 
B) decreases. 
C) falls to zero. 
D) becomes negative. 
A) increases. 
B) decreases. 
C) falls to zero. 
D) becomes negative.

Question 16

Total utility is at a ___________ when marginal utility is zero.

Accepted Answer

The answer of Total utility is at a ___________ when...

Question 17

-Given the demand curve in this graph,if price were $2.00,how much is consumer surplus?

Accepted Answer

A) $0 
B) $1.50 
C) $5.00 
D) $10.50 
A) $0 
B) $1.50 
C) $5.00 
D) $10.50

Question 18

If Mrs.T.F.Baker buys 29 pairs of false eye lashes at the local drug store,

Accepted Answer

A) she is definitely enjoying a consumer surplus. 
B) she may or may not be enjoying a consumer surplus. 
C) she is definitely not enjoying a consumer surplus. 
A) she is definitely enjoying a consumer surplus. 
B) she may or may not be enjoying a consumer surplus. 
C) she is definitely not enjoying a consumer surplus.

Question 19

As a person buys increasing amounts of a good,their marginal utility ______ and their consumer surplus _____.

Accepted Answer

A) decreases;increases 
B) decreases;decreases 
C) increases;increases 
D) increases;decreases 
A) decreases;increases 
B) decreases;decreases 
C) increases;increases 
D) increases;decreases

Question 20

When Karen buys eight units of a particular good or service,______________.

Accepted Answer

A) she has no consumer surplus 
B) she has a consumer surplus 
C) there is no way of knowing whether she has a consumer surplus 
A) she has no consumer surplus 
B) she has a consumer surplus 
C) there is no way of knowing whether she has a consumer surplus

Exam 19: Theory of Consumer Behavior

If you were in the middle of the desert,came upon a lemonade stand,and paid $20 for a glass of lemonade,

Daniel Zimiles will buy more and more baseball cards until

Table: Demand and Utility Schedules for packs of scented candles Price Quantity Demanded Marginal Utility Total Utility \ 8 1 \ 7 2 \ 6 3 \ 5 4 \ 4 5 -If the price were $5 each,her consumer surplus would be

Statement I: If you know a person's demand schedule for product J,you can derive her marginal utility schedule for product J. Statement II: If Bob buys 10 Sidney Sheldon novels,he is enjoying a consumer surplus.

The concept of consumer surplus was developed by the English economist __________________.

Marginal utility is the ______________.

A person who bought four hotdogs would be enjoying a __________________.

Table-Demand and Utility Table for action figures Price Quantity Demanded Marginal Utility Total Utility \ 14 1 \ 12 2 \ 10 3 \ 8 4 \ 6 5 -The marginal utility of his third action figure would be

When marginal utility is negative,total utility is

The water-diamond paradox is resolved once we realize that the marginal utility of the last gallon of water consumed is very ____ and the marginal utility of the last diamond carat purchased is very ___.

According to utility theory you would consume more and more of a service until your marginal utility

Statement I: Utility is measured by how much a person is willing to pay for a good or service. Statement II: If you buy four units of a good,your total utility is higher than if you purchased only three units.

As people buy more and more of a service,their consumer surplus

Total utility is at a ___________ when marginal utility is zero.

-Given the demand curve in this graph,if price were $2.00,how much is consumer surplus?

If Mrs.T.F.Baker buys 29 pairs of false eye lashes at the local drug store,

As a person buys increasing amounts of a good,their marginal utility ______ and their consumer surplus _____.

When Karen buys eight units of a particular good or service,______________.

A Brief Economic History of the United States

Resource Utilization

The Mixed Economy

Supply and Demand

The Household Consumption Sector

The Business Investment Sector

The Government Sector

The Export-Import Sector

Gross Domestic Product

Economic Fluctuations, unemployment, and Inflation

Classical and Keynesian Economics

Fiscal Policy and the National Debt

Money and Banking

The Federal Reserve and Monetary Policy

A Century of Economic Theory

Economic Growth and Productivity

Demand,supply,and Equilibrium

The Price Elasticities of Demand and Supply

Cost

Profit, loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

Filters

The water-diamond paradox is resolved once we realize that the marginal utility of the last gallon of water consumed is very __ and the marginal utility of the last diamond carat purchased is very _.

As a person buys increasing amounts of a good,their marginal utility __ and their consumer surplus _.