Question 1

Price discrimination occurs with products that consumers buy regularly.

Accepted Answer

A) True 
 B)False

Question 2

The slope of the indifference curve is equal to the

Accepted Answer

A)  Ratio of the price of one good to the price of the other good. 
B)  Income of the consumer. 
C)  Marginal rate of substitution. 
D)  Slope of the demand curve. 
A)  Ratio of the price of one good to the price of the other good. 
B)  Income of the consumer. 
C)  Marginal rate of substitution. 
D)  Slope of the demand curve.

Question 3

Refer to Figure 19.2.Diminishing marginal utility begins after

Accepted Answer

A)  The fourth apple. 
B)  The fifth apple. 
C)  The third apple. 
D)  The first apple. 
A)  The fourth apple. 
B)  The fifth apple. 
C)  The third apple. 
D)  The first apple.

Question 4

Josh is eating pizza at his favorite Italian restaurant. Below is his utility from this consumption:
$\begin{array}{|l|l|l|}
\hline & \text { Total Utility } & \text { Marginal Utility } \
\hline \text { First slice of pizza } & 20 & 20 \
\hline \text { Second slice of pizza } & 39 & 19 \
\hline \text { Third slice of pizza } & - & 15 \
\hline \text { Fourth slice of pizza } & 59 & - \
\hline
\end{array}$
Table $19.1$ Refer to Table 19.1.The marginal utility Josh enjoys from the fourth slice of pizza is

Accepted Answer

A)  20 utils. 
B)  54 utils. 
C)  5 utils. 
D)  0 utils. 
A)  20 utils. 
B)  54 utils. 
C)  5 utils. 
D)  0 utils.

Question 5

When economists refer to the determinants of demand, they are referring to factors that when changed,

Accepted Answer

A)  Cause a movement down a demand curve. 
B)  Cause the demand curve to shift left or right. 
C)  Influence producer behavior. 
D)  Cause a movement up one demand curve. 
A)  Cause a movement down a demand curve. 
B)  Cause the demand curve to shift left or right. 
C)  Influence producer behavior. 
D)  Cause a movement up one demand curve.

Question 6

The _________ of the demand curve corresponds to the idea that the marginal utility for the first few goods is _____________________.

Accepted Answer

A)  top; lower 
B)  bottom; lower 
C)  top; higher 
D)  bottom; higher 
A)  top; lower 
B)  bottom; lower 
C)  top; higher 
D)  bottom; higher

Question 7

Price discrimination works best when

Accepted Answer

A)  Sellers cannot meet collectively. 
B)  Buyers do not have perfect information about the price. 
C)  Buyers have information about prices charged to different customers. 
D)  A product is purchased frequently by consumers. 
A)  Sellers cannot meet collectively. 
B)  Buyers do not have perfect information about the price. 
C)  Buyers have information about prices charged to different customers. 
D)  A product is purchased frequently by consumers.

Question 8

Market demand is identical to individual demand.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements best captures the concept of consumer surplus?

Accepted Answer

A)  "I saw a sale for flowers, so I bought four bundles." 
B)  "I was willing to pay $30 for a dozen roses, but I bought them for $20." 
C)  "I was willing to pay $30 for roses, but they are selling for $35, so I did not buy." 
D)  "I paid $35 for roses last week and just saw them for sale now at $25." 
A)  "I saw a sale for flowers, so I bought four bundles." 
B)  "I was willing to pay $30 for a dozen roses, but I bought them for $20." 
C)  "I was willing to pay $30 for roses, but they are selling for $35, so I did not buy." 
D)  "I paid $35 for roses last week and just saw them for sale now at $25."

Question 10

Consumer surplus measures

Accepted Answer

A)  The difference between the maximum price a consumer is willing to pay and the price actually paid. 
B)  The difference between the minimum price a consumer is willing to pay and the price actually paid. 
C)  The difference between the amounts of a good a consumer is willing to pay, and how much of the good is available for sale. 
D)  The sum of all of the marginal utilities for that good 
A)  The difference between the maximum price a consumer is willing to pay and the price actually paid. 
B)  The difference between the minimum price a consumer is willing to pay and the price actually paid. 
C)  The difference between the amounts of a good a consumer is willing to pay, and how much of the good is available for sale. 
D)  The sum of all of the marginal utilities for that good

Question 11

Rosa is willing to pay $200 for the iPhone, but the actual price is $400.This means

Accepted Answer

A)  Rosa will enjoy a consumer surplus of $200 if she buys the iPhone. 
B)  Rosa will not buy an iPhone. 
C)  Rosa will buy this product but will not receive any consumer surplus. 
D)  The iPhone is overpriced. 
A)  Rosa will enjoy a consumer surplus of $200 if she buys the iPhone. 
B)  Rosa will not buy an iPhone. 
C)  Rosa will buy this product but will not receive any consumer surplus. 
D)  The iPhone is overpriced.

Question 12

Complete Table 19.3 below.Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.
$\begin{array}{llllll}
\text { Units of}&\text { TU of}&\text {MU of }&\text { Units of}&\text {TU of }&\text {MU of }\
 \text {Cola }&\text { Cola}&\text {Cola }&\text {Pretzels }&\text { Pretzels}&\text {Pretzels }\
\hline 1&40&40&1&30&30\2&\_\_\_&32&2&\_\_\_&20\3&96&24&2&66&16\4&112&\_\_\_&5&84&\_\_\_&
\end{array}$
Table 19.3
Michael's Utility Schedule In Table 19.3, what is the marginal utility of the fifth unit of cola?

Accepted Answer

A)  6. 
B)  12. 
C)  16. 
D)  24. 
A)  6. 
B)  12. 
C)  16. 
D)  24.

Question 13

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

Accepted Answer

A)  1 utils. 
B)  17 utils. 
C)  18 utils. 
D)  20 utils. 
A)  1 utils. 
B)  17 utils. 
C)  18 utils. 
D)  20 utils.

Question 14

If the marginal utility per dollar spent for candy bars is higher than the marginal utility per dollar spent for popcorn, you should buy more popcorn and fewer candy bars in order to maximize utility.

Accepted Answer

A) True 
 B)False

Question 15

Under what conditions can sellers engage in price discrimination?

Accepted Answer

Price discrimination occurs when sellers

Question 16

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, diminishing marginal utility occurs

Accepted Answer

A)  With the second and fourth units only. 
B)  With the first and third units only. 
C)  Only with the second unit. 
D)  With all units after the first. 
A)  With the second and fourth units only. 
B)  With the first and third units only. 
C)  Only with the second unit. 
D)  With all units after the first.

Question 17

A successful advertising campaign will make demand for a product less price-elastic.

Accepted Answer

A) True 
 B)False

Question 18

When choosing among products, consumers look at

Accepted Answer

A)  The marginal utility per dollar and their budget constraint. 
B)  The total utility that will be gained at the end of all consumption. 
C)  Only their budget. 
D)  The marginal utility of the good. 
A)  The marginal utility per dollar and their budget constraint. 
B)  The total utility that will be gained at the end of all consumption. 
C)  Only their budget. 
D)  The marginal utility of the good.

Question 19

Complete Table 19.3 below.Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.
$\begin{array}{llllll}
\text { Units of}&\text { TU of}&\text {MU of }&\text { Units of}&\text {TU of }&\text {MU of }\
 \text {Cola }&\text { Cola}&\text {Cola }&\text {Pretzels }&\text { Pretzels}&\text {Pretzels }\
\hline 1&40&40&1&30&30\2&\_\_\_&32&2&\_\_\_&20\3&96&24&2&66&16\4&112&\_\_\_&5&84&\_\_\_&
\end{array}$
Table 19.3
Michael's Utility Schedule Refer to Table 19.3.If Michael has $40 to spend on cola and pretzels, what is his maximum utility possible?

Accepted Answer

A)  40. 
B)  174. 
C)  190. 
D)  208. 
A)  40. 
B)  174. 
C)  190. 
D)  208.

Question 20

Using the concept of the budget constraint and indifference curves, explain how a consumer maximizes total utility.

Accepted Answer

Rational consumers maximize total utilit

Price discrimination occurs with products that consumers buy regularly.

The slope of the indifference curve is equal to the

Refer to Figure 19.2.Diminishing marginal utility begins after

When economists refer to the determinants of demand, they are referring to factors that when changed,

The _ of the demand curve corresponds to the idea that the marginal utility for the first few goods is _____________.

Price discrimination works best when

Market demand is identical to individual demand.

Which of the following statements best captures the concept of consumer surplus?

Consumer surplus measures

Rosa is willing to pay $200 for the iPhone, but the actual price is $400.This means

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

If the marginal utility per dollar spent for candy bars is higher than the marginal utility per dollar spent for popcorn, you should buy more popcorn and fewer candy bars in order to maximize utility.

Under what conditions can sellers engage in price discrimination?

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, diminishing marginal utility occurs

A successful advertising campaign will make demand for a product less price-elastic.

When choosing among products, consumers look at

Using the concept of the budget constraint and indifference curves, explain how a consumer maximizes total utility.

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

Price discrimination occurs with products that consumers buy regularly.

The slope of the indifference curve is equal to the

Refer to Figure 19.2.Diminishing marginal utility begins after

When economists refer to the determinants of demand, they are referring to factors that when changed,

The _________ of the demand curve corresponds to the idea that the marginal utility for the first few goods is _____________________.

Price discrimination works best when

Market demand is identical to individual demand.

Which of the following statements best captures the concept of consumer surplus?

Consumer surplus measures

Rosa is willing to pay $200 for the iPhone, but the actual price is $400.This means

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

If the marginal utility per dollar spent for candy bars is higher than the marginal utility per dollar spent for popcorn, you should buy more popcorn and fewer candy bars in order to maximize utility.

Under what conditions can sellers engage in price discrimination?

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, diminishing marginal utility occurs

A successful advertising campaign will make demand for a product less price-elastic.

When choosing among products, consumers look at

Using the concept of the budget constraint and indifference curves, explain how a consumer maximizes total utility.

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

The _ of the demand curve corresponds to the idea that the marginal utility for the first few goods 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, diminishing marginal utility occurs