Question 1

Two indifference curves can cross one another.

Accepted Answer

A) True 
 B)False  False

Question 2

Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.If the price per unit of good X is $3, the consumer would maximize utility at point

Accepted Answer

A)  B. 
B)  C. 
C)  D. 
D)  E. 
A)  B. 
B)  C. 
C)  D. 
D)  E. A

Question 3

Assume Amanda always maximizes her total utility given her budget constraint.Every morning for breakfast she has two eggs and three sausages.If the marginal utility of the last egg is 10 utils and the price of eggs is $1 each, what can we say about the marginal utility of the last sausage if the price of each sausage is $2?

Accepted Answer

A)  It must be equal to 20 utils. 
B)  It must be equal to 10 utils. 
C)  It must be equal to 5 utils. 
D)  It must be equal to 1 utils. 
A)  It must be equal to 20 utils. 
B)  It must be equal to 10 utils. 
C)  It must be equal to 5 utils. 
D)  It must be equal to 1 utils. A

Question 4

Explain how a successful advertising campaign will affect the demand curve for the product being advertised.

Accepted Answer

A successful advertising campaign will s

Question 5

Use the law of diminishing utility to explain why a demand curve is typically downward-sloping.

Accepted Answer

The greater the quantity of a good that

Question 6

In the article "Men vs.Women: How They Spend,"

Accepted Answer

A)  Both sexes spend more than they earn. 
B)  Both sexes make the same annual income. 
C)  Both sexes spend the same amount of money on clothing purchases. 
D)  Women earn more than men. 
A)  Both sexes spend more than they earn. 
B)  Both sexes make the same annual income. 
C)  Both sexes spend the same amount of money on clothing purchases. 
D)  Women earn more than men.

Question 7

The market demand for a product is

Accepted Answer

A)  The sum of all of the markets in the area. 
B)  The sum of all of the marginal utilities among consumers. 
C)  The total utility received for a good by all consumers in the market. 
D)  The sum of all of the individual demands for that product. 
A)  The sum of all of the markets in the area. 
B)  The sum of all of the marginal utilities among consumers. 
C)  The total utility received for a good by all consumers in the market. 
D)  The sum of all of the individual demands for that product.

Question 8

Explain how a rational consumer decides which goods to buy.

Accepted Answer

Rational consumers are aware of their bu

Question 9

Airline companies engage in price discrimination by

Accepted Answer

A)  Charging unrestricted fares. 
B)  Giving a temporary price cut. 
C)  Charging business customers higher prices than vacation travelers. 
D)  Engaging in price-fixing. 
A)  Charging unrestricted fares. 
B)  Giving a temporary price cut. 
C)  Charging business customers higher prices than vacation travelers. 
D)  Engaging in price-fixing.

Question 10

Consumer surplus is represented graphically under the demand curve and below the equilibrium price.

Accepted Answer

A) True 
 B)False

Question 11

Refer to Figure 19.2.The total utility of two apples is

Accepted Answer

A)  2 utils. 
B)  5 utils. 
C)  6 utils. 
D)  11 utils. 
A)  2 utils. 
B)  5 utils. 
C)  6 utils. 
D)  11 utils.

Question 12

Utility refers to the

Accepted Answer

A)  Satisfaction obtained from a good or service. 
B)  Additional satisfaction obtained from one more unit of a good or service. 
C)  Willingness to buy specific quantities of a good or service at a particular price. 
D)  Decrease in satisfaction as more of a good or service is consumed. 
A)  Satisfaction obtained from a good or service. 
B)  Additional satisfaction obtained from one more unit of a good or service. 
C)  Willingness to buy specific quantities of a good or service at a particular price. 
D)  Decrease in satisfaction as more of a good or service is consumed.

Question 13

Complete Table 19.2 below:
$\begin{array}{lll}
\text { Quantity } & \text { Total } & \text { Marginal } \
\text { Consumed } & \text { Utility } & \text { Utility }\
1 & 15 & 15 \
2 & -& 9 \
3 &30 & - \
4 & -& 3
\end{array}$
Table $19.2$
Utility Schedule In Table 19.2, the total utility when two units are consumed is

Accepted Answer

A)  6. 
B)  9. 
C)  15. 
D)  24. 
A)  6. 
B)  9. 
C)  15. 
D)  24.

Question 14

The law of diminishing marginal utility gives us a deeper understanding of the downward-sloping demand curve because

Accepted Answer

A)  Consumers are willing to pay a higher price for a greater quantity. 
B)  Consumer tastes change due to advertising. 
C)  When marginal utility is high, we are willing to pay a higher price. 
D)  Consumers do not respond to a change in price. 
A)  Consumers are willing to pay a higher price for a greater quantity. 
B)  Consumer tastes change due to advertising. 
C)  When marginal utility is high, we are willing to pay a higher price. 
D)  Consumers do not respond to a change in price.

Question 15

All consumers in the market enjoy a consumer surplus.

Accepted Answer

A) True 
 B)False

Question 16

Evaluating a supply and a demand curve independently, if the equilibrium price rises,

Accepted Answer

A)  The consumer surplus will fall. 
B)  The producer surplus will fall. 
C)  The consumer surplus will increase. 
D)  The producer surplus will increase. 
A)  The consumer surplus will fall. 
B)  The producer surplus will fall. 
C)  The consumer surplus will increase. 
D)  The producer surplus will increase.

Question 17

If a successful advertising campaign increases brand loyalty, the

Accepted Answer

A)  Supply of the advertised good will become less elastic. 
B)  Demand for the advertised good will become less elastic. 
C)  Supply of substitutes for the advertised good will increase. 
D)  Total level of consumption will decrease. 
A)  Supply of the advertised good will become less elastic. 
B)  Demand for the advertised good will become less elastic. 
C)  Supply of substitutes for the advertised good will increase. 
D)  Total level of consumption will decrease.

Question 18

Complete Table 19.2 below:
$\begin{array}{lll}
\text { Quantity } & \text { Total } & \text { Marginal } \
\text { Consumed } & \text { Utility } & \text { Utility }\
1 & 15 & 15 \
2 & -& 9 \
3 &30 & - \
4 & -& 3
\end{array}$
Table $19.2$
Utility Schedule In Table 19.2, the marginal utility of the third unit is

Accepted Answer

A)  3. 
B)  5. 
C)  6. 
D)  30. 
A)  3. 
B)  5. 
C)  6. 
D)  30.

Question 19

According to consumer choice theory, rational behavior requires that consumers compare the marginal utility of each purchase with its price.

Accepted Answer

A) True 
 B)False

Question 20

The law of diminishing marginal utility does not apply to goods that a person really enjoys.

Accepted Answer

A) True 
 B)False

Two indifference curves can cross one another.

Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.If the price per unit of good X is $3, the consumer would maximize utility at point

Explain how a successful advertising campaign will affect the demand curve for the product being advertised.

Use the law of diminishing utility to explain why a demand curve is typically downward-sloping.

In the article "Men vs.Women: How They Spend,"

The market demand for a product is

Explain how a rational consumer decides which goods to buy.

Airline companies engage in price discrimination by

Consumer surplus is represented graphically under the demand curve and below the equilibrium price.

Refer to Figure 19.2.The total utility of two apples is

Utility refers to the

Complete Table 19.2 below: Quantity Total Marginal Consumed Utility Utility 1 15 15 2 - 9 3 30 - 4 - 3 Table $19.2$ Utility Schedule In Table 19.2, the total utility when two units are consumed is

The law of diminishing marginal utility gives us a deeper understanding of the downward-sloping demand curve because

All consumers in the market enjoy a consumer surplus.

Evaluating a supply and a demand curve independently, if the equilibrium price rises,

If a successful advertising campaign increases brand loyalty, the

Complete Table 19.2 below: Quantity Total Marginal Consumed Utility Utility 1 15 15 2 - 9 3 30 - 4 - 3 Table $19.2$ Utility Schedule In Table 19.2, the marginal utility of the third unit is

According to consumer choice theory, rational behavior requires that consumers compare the marginal utility of each purchase with its price.

The law of diminishing marginal utility does not apply to goods that a person really enjoys.

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

Filters

Exam 5: Consumer Choice

Two indifference curves can cross one another.

Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question.Assume the price of Y is $1 per unit.If the price per unit of good X is $3, the consumer would maximize utility at point

Explain how a successful advertising campaign will affect the demand curve for the product being advertised.

Use the law of diminishing utility to explain why a demand curve is typically downward-sloping.

In the article "Men vs.Women: How They Spend,"

The market demand for a product is

Explain how a rational consumer decides which goods to buy.

Airline companies engage in price discrimination by

Consumer surplus is represented graphically under the demand curve and below the equilibrium price.

Refer to Figure 19.2.The total utility of two apples is

Utility refers to the

Complete Table 19.2 below: Quantity Total Marginal Consumed Utility Utility 1 15 15 2 - 9 3 30 - 4 - 3 Table 19.219.219.2 Utility Schedule In Table 19.2, the total utility when two units are consumed is

The law of diminishing marginal utility gives us a deeper understanding of the downward-sloping demand curve because

All consumers in the market enjoy a consumer surplus.

Evaluating a supply and a demand curve independently, if the equilibrium price rises,

If a successful advertising campaign increases brand loyalty, the

Complete Table 19.2 below: Quantity Total Marginal Consumed Utility Utility 1 15 15 2 - 9 3 30 - 4 - 3 Table 19.219.219.2 Utility Schedule In Table 19.2, the marginal utility of the third unit is

According to consumer choice theory, rational behavior requires that consumers compare the marginal utility of each purchase with its price.

The law of diminishing marginal utility does not apply to goods that a person really enjoys.

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

Filters

Complete Table 19.2 below: Quantity Total Marginal Consumed Utility Utility 1 15 15 2 - 9 3 30 - 4 - 3 Table $19.2$ Utility Schedule In Table 19.2, the total utility when two units are consumed is

Complete Table 19.2 below: Quantity Total Marginal Consumed Utility Utility 1 15 15 2 - 9 3 30 - 4 - 3 Table $19.2$ Utility Schedule In Table 19.2, the marginal utility of the third unit is