\[\begin{array} { c l c r c c } \hline \text { Quantities } & \text { MU } _ { \text {apples } } \text { (Adam) } & \text { MU } _ { \text {oranges } } \text { (Adam) } & \text { Quantities } & \text { MU } _ { \text {apples } } \text { (Eve) } & \text { MU } _ { \text {oranges } } \text { (Eve) } \\ \hline 1 & 40 & 30 & 1 & 15 & 20 \\ 2 & 30 & 20 & 2 & 10 & 15 \\ 3 & 25 & 15 & 3 & 8 & 12 \\ 4 & 20 & 12 & 4 & 5 & 10 \\ \hline \end{array}\] -Use the above table.Adam has 3 apples and 3 oranges.Eve has 2 apples and 2 oranges.Eve asks Adam to give her an apple in exchange for an orange.Should Eve go through with this exchange?

A) Yes.This way she will have 3 apples,which will give her more total satisfaction. B) Yes.She is indifferent between consuming apples and oranges. C) No.She gives up more satisfaction than she gets. D) No.Adam likes apples more than oranges. A) Yes.This way she will have 3 apples,which will give her more total satisfaction. B) Yes.She is indifferent between consuming apples and oranges. C) No.She gives up more satisfaction than she gets. D) No.Adam likes apples more than oranges.

\[\begin{array} { l c } \hline \text { Pizza } & \text { Marginal Utility } \\ \hline \text { 1st Slice } & 7 \text { utils } \\ \text { 2nd Slice } & 6 \text { utils } \\ \text { 3rd Slice } & 4 \text { utils } \\ \text { 4th Slice } & 3 \text { utils } \\ \hline \end{array}\] -Suppose the price of pizza is $2 and the consumer optimum is reached when MU/P = 3.Tom's preferences for pizza are shown in the above table.How many slices will Tom buy?

A) 1 slice B) 2 slices C) 3 slices D) 4 slices A) 1 slice B) 2 slices C) 3 slices D) 4 slices

\[\begin{array} { c c c c } \begin{array} { c } \text { Quantity of } \\ \text { Hamburgers/Wk } \end{array} & \begin{array} { c } \text { Total } \\ \text { Utility } \end{array} & \begin{array} { c } \text { Quantity of } \\ \text { Movies/Wk } \end{array} & \begin{array} { c } \text { Total } \\ \text { Utility } \end{array} \\ \hline 0 & 0 & 0 & 0 \\ 1 & 25 & 1 & 200 \\ 2 & 45 & 2 & 260 \\ 3 & 55 & 3 & 300 \\ 4 & 60 & 4 & 320 \\ 5 & 61 & 5 & 325 \\ \hline \end{array}\] -Refer to the above table.Assume the consumer spends his entire income.If the consumer's optimum at the current price of a movie is at 4 hamburgers and 4 movies,and the price of a hamburger is $1,what is the consumer's income?

A) $28 B) $20 C) $16 D) $40 A) $28 B) $20 C) $16 D) $40

Exam 7: Consumer Choice

Olga buys a bag of potato chips every day after her economics class.The first potato chip always tastes wonderful.The second does not taste quite as good as the first.The third does not taste quite as good as the second.Olga is experiencing

(Multiple Choice)

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Question 61

The state of consumer optimum is reached when the consumer's

(Multiple Choice)

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Question 62

When the price of DVDs falls relative to movie and restaurant prices,and consumers buy more of the DVDs,economists call this

(Multiple Choice)

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Question 63

John has just eaten another potato chip and his total utility decreased.This means that John's marginal utility for this additional potato chip is

(Multiple Choice)

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Question 64

If a consumer is at an optimum,consuming X and Y,and the price of X decreases,then to get to a new equilibrium the consumer must

(Multiple Choice)

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Question 65

When marginal utility is positive,but decreasing,then total utility is

(Multiple Choice)

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Question 66

Quantities (Adam) (Adam) Quantities (Eve) (Eve) 1 40 30 1 15 20 2 30 20 2 10 15 3 25 15 3 8 12 4 20 12 4 5 10 -Use the above table.Adam has 3 apples and 3 oranges.Eve has 2 apples and 2 oranges.Eve asks Adam to give her an apple in exchange for an orange.Should Eve go through with this exchange?

(Multiple Choice)

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Question 67

Bill ate four hot dogs at the baseball game.The first one tasted best,but he found that as he ate more hot dogs the amount of extra satisfaction he was receiving was beginning to fall.This would demonstrate

(Multiple Choice)

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Question 68

A higher price for a good implies that

(Multiple Choice)

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Question 69

Using the utility-optimizing model,which of the following would induce a consumer to increase consumption of good x,a normal good?

(Multiple Choice)

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Question 70

Quantity Total Utility Per Week Amy Robert David Michelle 0 0 0 0 0 1 5.0 100 600 60 2 9.9 190 1200 130 3 14.7 270 1800 220 4 19.4 340 2400 310 5 24.0 400 3000 425 6 28.5 450 3600 575 7 32.9 490 4200 900 8 37.2 520 4800 1275 9 41.4 510 5400 1770 -Refer to the above table.The one who likes the good the most is

(Multiple Choice)

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Question 71

If the marginal utility of each good is constant as consumption increases,the indifference curves are

(Multiple Choice)

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Question 72

Pizza Marginal Utility 1st Slice 7 utils 2nd Slice 6 utils 3rd Slice 4 utils 4th Slice 3 utils -Suppose the price of pizza is $2 and the consumer optimum is reached when MU/P = 3.Tom's preferences for pizza are shown in the above table.How many slices will Tom buy?

(Multiple Choice)

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Question 73

Quantity of Hamburgers/Wk Total Utility Quantity of Movies/Wk Total Utility 0 0 0 0 1 25 1 200 2 45 2 260 3 55 3 300 4 60 4 320 5 61 5 325 -Refer to the above table.Assume the consumer spends his entire income.If the consumer's optimum at the current price of a movie is at 4 hamburgers and 4 movies,and the price of a hamburger is $1,what is the consumer's income?

(Multiple Choice)

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Question 74

The utility analysis theory assumes that consumers try to

(Multiple Choice)

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Question 75

The diamond-water paradox was solved by knowing that

(Multiple Choice)

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Question 76

-In the above figure,if the budget line is the line DF,the consumer will maximize utility at point

(Multiple Choice)

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Question 77

The amount of pleasure or satisfaction derived from consumption of a good is called

(Multiple Choice)

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Question 78

-Use the above figure.When the budget line rotates from "b" to "c"

(Multiple Choice)

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Question 79

If the price of a slice of pizza falls from $2 to $1,a pizza-loving consumer will

(Multiple Choice)

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Question 80

Olga buys a bag of potato chips every day after her economics class.The first potato chip always tastes wonderful.The second does not taste quite as good as the first.The third does not taste quite as good as the second.Olga is experiencing

The state of consumer optimum is reached when the consumer's

When the price of DVDs falls relative to movie and restaurant prices,and consumers buy more of the DVDs,economists call this

John has just eaten another potato chip and his total utility decreased.This means that John's marginal utility for this additional potato chip is

If a consumer is at an optimum,consuming X and Y,and the price of X decreases,then to get to a new equilibrium the consumer must

When marginal utility is positive,but decreasing,then total utility is

Quantities (Adam) (Adam) Quantities (Eve) (Eve) 1 40 30 1 15 20 2 30 20 2 10 15 3 25 15 3 8 12 4 20 12 4 5 10 -Use the above table.Adam has 3 apples and 3 oranges.Eve has 2 apples and 2 oranges.Eve asks Adam to give her an apple in exchange for an orange.Should Eve go through with this exchange?

Bill ate four hot dogs at the baseball game.The first one tasted best,but he found that as he ate more hot dogs the amount of extra satisfaction he was receiving was beginning to fall.This would demonstrate

A higher price for a good implies that

Using the utility-optimizing model,which of the following would induce a consumer to increase consumption of good x,a normal good?

If the marginal utility of each good is constant as consumption increases,the indifference curves are

Pizza Marginal Utility 1st Slice 7 utils 2nd Slice 6 utils 3rd Slice 4 utils 4th Slice 3 utils -Suppose the price of pizza is $2 and the consumer optimum is reached when MU/P = 3.Tom's preferences for pizza are shown in the above table.How many slices will Tom buy?

The utility analysis theory assumes that consumers try to

The diamond-water paradox was solved by knowing that

-In the above figure,if the budget line is the line DF,the consumer will maximize utility at point

The amount of pleasure or satisfaction derived from consumption of a good is called

-Use the above figure.When the budget line rotates from "b" to "c"

If the price of a slice of pizza falls from $2 to $1,a pizza-loving consumer will

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