Question 1

A successful advertising campaign induces consumers to buy more of a product at any given price than before.

Accepted Answer

A) True 
 B)False

Question 2

Complete Table 19.2 below:
$\begin{array}{lll}
\text { Quantity } & \text { Total } & \text { Marginal } \
 \underline{\text { Consumed }} & \underline{\text { Utility }} & \underline{ \text { Utility }} \
 1 & 15 & 15 \
2 &\underline{\quad\quad} & 9 \
3 & 30&\underline{\quad\quad}\
4&\underline{\quad\quad}&3\
\end{array}$

$\text {Table $19.2$}$

In Table 19.2, the total utility when four units are consumed is

Accepted Answer

A) 33. 
B) 30. 
C) 6. 
D) 3. 
A) 33. 
B) 30. 
C) 6. 
D) 3.

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

The ___________ surplus will rise if the price of the good ________.

Accepted Answer

A) consumer; rises 
B) consumer; falls 
C) producer; falls 
D) total; rises 
A) consumer; rises 
B) consumer; falls 
C) producer; falls 
D) total; rises

Question 6

An indifference map shows

Accepted Answer

A) A set of indifference curves. 
B) One indifference curve. 
C) A set of indifference curves and a set of budget constraints. 
D) A set of budget constraints and one indifference curve. 
A) A set of indifference curves. 
B) One indifference curve. 
C) A set of indifference curves and a set of budget constraints. 
D) A set of budget constraints and one indifference curve.

Question 7

Complete Table 19.3 below.Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.
  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 8

Explain the benefits consumers enjoy from competitive markets.

Accepted Answer

Many consumers in the market are willing

Question 9

See Figure 19.1.Lu's consumer surplus is equal to

Accepted Answer

A) $100. 
B) $200. 
C) $300. 
D) $500. 
A) $100. 
B) $200. 
C) $300. 
D) $500.

Question 10

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.In Figure 19.3, point E

Accepted Answer

A) Is optimal and affordable. 
B) Gives the consumer a very high level of utility and is affordable. 
C) Is a very high level of utility but not affordable. 
D) Represents a very low level of utility and is not desirable. 
A) Is optimal and affordable. 
B) Gives the consumer a very high level of utility and is affordable. 
C) Is a very high level of utility but not affordable. 
D) Represents a very low level of utility and is not desirable.

Question 11

Sellers can gain profits from price discrimination because

Accepted Answer

A) Charging different prices based on willingness to pay can increase revenues without increasing costs. 
B) Total expenses are less with price discrimination. 
C) Total revenues are maximized when all buyers pay the same price. 
D) Different prices charged to different customers can lower total revenue. 
A) Charging different prices based on willingness to pay can increase revenues without increasing costs. 
B) Total expenses are less with price discrimination. 
C) Total revenues are maximized when all buyers pay the same price. 
D) Different prices charged to different customers can lower total revenue.

Question 12

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 13

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

Accepted Answer

Rational consumers maximize total utilit

Question 14

Economic explanations of consumer behavior take into consideration

Accepted Answer

A) Ego gratification. 
B) Lack of self-confidence. 
C) Social status. 
D) Prices and income. 
A) Ego gratification. 
B) Lack of self-confidence. 
C) Social status. 
D) Prices and income.

Question 15

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 16

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 17

Price discrimination occurs when stores mark down products for sale.

Accepted Answer

A) True 
 B)False

Question 18

If a good had a zero price (i.e., the good was free), a rational person would consume

Accepted Answer

A) An infinite amount of the good. 
B) The good until total utility was zero. 
C) The good until the marginal utility was maximized. 
D) The good until the marginal utility of the last unit was zero. 
A) An infinite amount of the good. 
B) The good until total utility was zero. 
C) The good until the marginal utility was maximized. 
D) The good until the marginal utility of the last unit was zero.

Question 19

Price discrimination only occurs when consumers have only partial information about a product's price and availability.

Accepted Answer

A) True 
 B)False

Question 20

Price discrimination

Accepted Answer

A) Is illegal. 
B) Rarely occurs in the airline industry. 
C) Is a way for sellers to exact the maximum willingness to pay from buyers. 
D) Is a method used by sellers to pit one buyer against the other. 
A) Is illegal. 
B) Rarely occurs in the airline industry. 
C) Is a way for sellers to exact the maximum willingness to pay from buyers. 
D) Is a method used by sellers to pit one buyer against the other.

Exam 5: Consumer Choice

A successful advertising campaign induces consumers to buy more of a product at any given price than before.

Complete Table 19.2 below: Quantity Total Marginal 1 15 15 2 9 3 30 4 3 Table 19.2\text {Table 19.2}Table 19.2 In Table 19.2, the total utility when four units are consumed is

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

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

The ___________ surplus will rise if the price of the good ________.

An indifference map shows

Complete Table 19.3 below.Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit. Refer to Table 19.3.If Michael has $40 to spend on cola and pretzels, what is his maximum utility possible?

Explain the benefits consumers enjoy from competitive markets.

See Figure 19.1.Lu's consumer surplus is equal to

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.In Figure 19.3, point E

Sellers can gain profits from price discrimination because

If a successful advertising campaign increases brand loyalty, the

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

Economic explanations of consumer behavior take into consideration

Consumer surplus measures

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.

Price discrimination occurs when stores mark down products for sale.

If a good had a zero price (i.e., the good was free), a rational person would consume

Price discrimination only occurs when consumers have only partial information about a product's price and availability.

Price discrimination

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

International Finance

Global Poverty

Filters

Complete Table 19.2 below: Quantity Total Marginal 1 15 15 2 9 3 30 4 3 $\text {Table 19.2}$ In Table 19.2, the total utility when four units are consumed is

The ___ surplus will rise if the price of the good .