Question 1

The price of a drink at the juice bar is $7.Melody Miller buys six carrot juices over the course of the afternoon.

Accepted Answer

A) She is enjoying a consumer surplus. 
B) She is not enjoying a consumer surplus. 
C) There is no way to determine whether or not she is enjoying a consumer surplus. 
A) She is enjoying a consumer surplus. 
B) She is not enjoying a consumer surplus. 
C) There is no way to determine whether or not she is enjoying a consumer surplus.

Question 2

If a music store were having a "buy one,get one free" sale,instead of buying two CDs,you bought four.Because of the sale,your consumer surplus

Accepted Answer

A) rose. 
B) stayed the same. 
C) declined. 
A) rose. 
B) stayed the same. 
C) declined.

Question 3

Table: Demand and Utility Schedules for packs of scented candles $$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 8 & 1 & & \
\hline \$ 7 & 2 & & \
\hline \$ 6 & 3 & & \
\hline \$ 5 & 4 & & \
\hline \$ 4 & 5 & & \
\hline
\end{array}$$
-Polly's total utility for 3 scented candles would be

Accepted Answer

A) $8. 
B) $14. 
C) $15. 
D) $21. 
E) None of the choices are correct. 
A) $8. 
B) $14. 
C) $15. 
D) $21. 
E) None of the choices are correct.

Question 4

Alfred Marshall discovered the concept of

Accepted Answer

A) utility. 
B) consumer surplus. 
C) diminishing marginal utility. 
D) the diamond-water paradox. 
A) utility. 
B) consumer surplus. 
C) diminishing marginal utility. 
D) the diamond-water paradox.

Question 5

Mr.Noriega paid $700 for each of three suits.Since all of the suits were pleasing to his taste,he would have been willing to pay according to this schedule: $950 for the first suit,$800 for the second suit,and $700 for the third suit.How much was his consumer surplus?

Accepted Answer

A) $100 
B) $150 
C) $250 
D) $350 
E) $700 
A) $100 
B) $150 
C) $250 
D) $350 
E) $700

Question 6

Statement I: It would be meaningless to say that a certain good is worth $25.
Statement II: A person's utility schedule can change over time.

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 7

If your marginal utility becomes negative,your total utility ____________.

Accepted Answer

The answer of If your marginal utility becomes negative,your total...

Question 8

Demand and Utility Table for Milk Shakes $$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 4 & 1 & & \
\hline \$ 3.50 & 2 & & \
\hline \$ 3.00 & 3 & & \
\hline \$ 2.50 & 4 & & \
\hline \$ 2.00 & 5 & & \
\hline
\end{array}$$
-Your total utility for 5 milk shakes would be

Accepted Answer

A) $2. 
B) $4. 
C) $7.50. 
D) $13. 
E) $15. 
A) $2. 
B) $4. 
C) $7.50. 
D) $13. 
E) $15.

Question 9

Which philosopher-economist observed: "Individuals make choices in order to promote pleasure and to avoid pain"?

Accepted Answer

A) Thomas Malthus 
B) Jeremy Bentham 
C) Publilius Syrus 
D) Stanley Jevons 
E) Samuel Taylor Coleridge 
A) Thomas Malthus 
B) Jeremy Bentham 
C) Publilius Syrus 
D) Stanley Jevons 
E) Samuel Taylor Coleridge

Question 10

Suppose you buy eight pairs of shoes every spring.This year,your shoe store has a huge sale and you end up buying 12 pairs.How does your consumer surplus now compare to how much it would have been had there been no sale?

Accepted Answer

A) It is higher. 
B) It remains the same. 
C) It is lower. 
A) It is higher. 
B) It remains the same. 
C) It is lower.

Question 11

When marginal utility is zero,total utility

Accepted Answer

A) is zero. 
B) is maximized. 
C) is falling. 
D) is negative. 
A) is zero. 
B) is maximized. 
C) is falling. 
D) is negative.

Question 12

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 $6 each,her consumer surplus would be

Accepted Answer

A) $26. 
B) $18. 
C) $13. 
D) $3. 
E) None of the choices are correct. 
A) $26. 
B) $18. 
C) $13. 
D) $3. 
E) None of the choices are correct.

Question 13

Suppose that your demand schedule for jeans is shown in the table below.
A)Your total utility from 5 pairs of jeans would be ____.
B)Your marginal utility for the fifth pair would be ____.
C)If the price of jeans were $10 a pair,your consumer surplus would be ____.
$$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 60 & 1 & & \
\hline \$ 50 & 2 & & \
\hline \$ 40 & 3 & & \
\hline \$ 25 & 4 & & \
\hline \$ 10 & 5 & & \
\hline
\end{array}$$

Accepted Answer

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

Question 14

If Rachel bought too many hot dogs,her marginal utility would become negative and her total utility would

Accepted Answer

A) rise more slowly. 
B) stop rising. 
C) begin to fall. 
D) become negative. 
A) rise more slowly. 
B) stop rising. 
C) begin to fall. 
D) become negative.

Question 15

Demand and Utility Schedules for Packs of Star Wars Trading Cards $$\begin{array} { | l | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 10 & 1 & & \
\hline \$ 9 & 2 & & \
\hline \$ 8 & 3 & & \
\hline \$ 7 & 4 & & \
\hline \$ 6 & 5 & & \
\hline
\end{array}$$
-Katie's total utility for 4 packs of Star Wars trading cards would be

Accepted Answer

A) $24. 
B) $27. 
C) $28. 
D) $34. 
E) None of the choices are correct. 
A) $24. 
B) $27. 
C) $28. 
D) $34. 
E) None of the choices are correct.

Question 16

Which would be the most accurate statement?

Accepted Answer

A) No one enjoys a consumer surplus. 
B) We enjoy a consumer surplus on many goods and services. 
C) We enjoy a consumer surplus on all goods and services. 
A) No one enjoys a consumer surplus. 
B) We enjoy a consumer surplus on many goods and services. 
C) We enjoy a consumer surplus on all goods and services.

Question 17

Which statement is false?

Accepted Answer

A) A product's utility to a buyer is measured by how much the buyer is willing to pay for it. 
B) A person would maximize her total utility when she had no consumer surplus. 
C) We will consume a service when its marginal utility is equal to its price. 
D) As the price of a good rises the consumer surplus decreases. 
A) A product's utility to a buyer is measured by how much the buyer is willing to pay for it. 
B) A person would maximize her total utility when she had no consumer surplus. 
C) We will consume a service when its marginal utility is equal to its price. 
D) As the price of a good rises the consumer surplus decreases.

Question 18

If you could create a vending machine that could automatically increase the price when it detected people were more likely to buy soft drinks,

Accepted Answer

A) you could only make more money if you charged the same price for all the soft drinks. 
B) you would be increasing the customer's consumer surplus. 
C) you would be decreasing the customer's consumer surplus. 
D) the customer's consumer surplus would not change. 
A) you could only make more money if you charged the same price for all the soft drinks. 
B) you would be increasing the customer's consumer surplus. 
C) you would be decreasing the customer's consumer surplus. 
D) the customer's consumer surplus would not change.

Question 19

Her marginal utility of her fifth pack of trading cards would be

Accepted Answer

A) $40. 
B) $34. 
C) $30. 
D) $6. 
E) None of the choices are true. 
A) $40. 
B) $34. 
C) $30. 
D) $6. 
E) None of the choices are true.

Question 20

If water became very scarce and diamonds became very plentiful

Accepted Answer

A) the marginal utility of diamonds and water would both rise. 
B) the marginal utility of both water and diamonds would both fall. 
C) the marginal utility of diamonds would rise and the marginal utility of water would fall. 
D) the marginal utility of water would rise and the marginal utility of diamonds would fall. 
A) the marginal utility of diamonds and water would both rise. 
B) the marginal utility of both water and diamonds would both fall. 
C) the marginal utility of diamonds would rise and the marginal utility of water would fall. 
D) the marginal utility of water would rise and the marginal utility of diamonds would fall.

Exam 19: Theory of Consumer Behavior

The price of a drink at the juice bar is $7.Melody Miller buys six carrot juices over the course of the afternoon.

If a music store were having a "buy one,get one free" sale,instead of buying two CDs,you bought four.Because of the sale,your consumer surplus

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 -Polly's total utility for 3 scented candles would be

Alfred Marshall discovered the concept of

Mr.Noriega paid $700 for each of three suits.Since all of the suits were pleasing to his taste,he would have been willing to pay according to this schedule: $950 for the first suit,$800 for the second suit,and $700 for the third suit.How much was his consumer surplus?

Statement I: It would be meaningless to say that a certain good is worth $25. Statement II: A person's utility schedule can change over time.

If your marginal utility becomes negative,your total utility ____________.

Demand and Utility Table for Milk Shakes Price Quantity Demanded Marginal Utility Total Utility \ 4 1 \ 3.50 2 \ 3.00 3 \ 2.50 4 \ 2.00 5 -Your total utility for 5 milk shakes would be

Which philosopher-economist observed: "Individuals make choices in order to promote pleasure and to avoid pain"?

Suppose you buy eight pairs of shoes every spring.This year,your shoe store has a huge sale and you end up buying 12 pairs.How does your consumer surplus now compare to how much it would have been had there been no sale?

When marginal utility is zero,total utility

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 $6 each,her consumer surplus would be

If Rachel bought too many hot dogs,her marginal utility would become negative and her total utility would

Demand and Utility Schedules for Packs of Star Wars Trading Cards Price Quantity Demanded Marginal Utility Total Utility \ 10 1 \ 9 2 \ 8 3 \ 7 4 \ 6 5 -Katie's total utility for 4 packs of Star Wars trading cards would be

Which would be the most accurate statement?

Which statement is false?

If you could create a vending machine that could automatically increase the price when it detected people were more likely to buy soft drinks,

Her marginal utility of her fifth pack of trading cards would be

If water became very scarce and diamonds became very plentiful

A Brief Economic History of the United States

Resource Utilization

The Mixed Economy

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Gross Domestic Product

Economic Fluctuations, unemployment, and Inflation

Classical and Keynesian Economics

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Money and Banking

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A Century of Economic Theory

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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

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