Question 1

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, 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 2

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 3

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 by consuming

Accepted Answer

A) 30 units of Y. 
B) 21 units of Y. 
C) 10 units of Y. 
D) 25 units of Y. 
A) 30 units of Y. 
B) 21 units of Y. 
C) 10 units of Y. 
D) 25 units of Y.

Question 4

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

Refer to Figure 19.1.The total consumer surplus in this market is equal to

Accepted Answer

A) $950. 
B) $900. 
C) $850. 
D) $800. 
A) $950. 
B) $900. 
C) $850. 
D) $800.

Question 7

Utility maximization is always achieved where total revenue is maximized.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

When a rational consumer has stopped buying, she or he will have allocated a limited budget so that the marginal utility per good will be the same.

Accepted Answer

A) True 
 B)False

Question 10

If advertising is successful,

Accepted Answer

A) The demand becomes more elastic. 
B) The demand curve shifts to the left. 
C) The demand curve shifts to the right and becomes steeper. 
D) The demand curve shifts to the left, and demand becomes more price-elastic. 
A) The demand becomes more elastic. 
B) The demand curve shifts to the left. 
C) The demand curve shifts to the right and becomes steeper. 
D) The demand curve shifts to the left, and demand becomes more price-elastic.

Question 11

Consumers who actually purchase a good either were willing to pay that price or more.

Accepted Answer

A) True 
 B)False

Question 12

Which of these examples is an example of price discrimination?

Accepted Answer

A) Goods are marked down on sale. 
B) Wholesale prices differ from retail prices. 
C) Seniors pay one price at the movie theater and adults pay more. 
D) Cereal manufacturers put discount coupons inside their cereal boxes. 
A) Goods are marked down on sale. 
B) Wholesale prices differ from retail prices. 
C) Seniors pay one price at the movie theater and adults pay more. 
D) Cereal manufacturers put discount coupons inside their cereal boxes.

Question 13

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 14

Price discrimination occurs when

Accepted Answer

A) Minorities pay a higher price for a product than everyone else. 
B) Sellers charge a higher price than is reasonable. 
C) Sellers charge two separate prices for the same product to two different groups. 
D) Sellers charge one price to all consumers but not wholesalers. 
A) Minorities pay a higher price for a product than everyone else. 
B) Sellers charge a higher price than is reasonable. 
C) Sellers charge two separate prices for the same product to two different groups. 
D) Sellers charge one price to all consumers but not wholesalers.

Question 15

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 16

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

Question 17

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

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 18

An indifference curve represents combinations of two goods that provide an individual the same total utility.

Accepted Answer

A) True 
 B)False

Question 19

Optimal consumption is the mix of consumer goods sold that maximizes utility for producers.

Accepted Answer

A) True 
 B)False

Question 20

Sociopsychiatric explanations of consumer behavior include the

Accepted Answer

A) Desire for ego and status. 
B) Level of income. 
C) Level of wealth. 
D) Prices of other goods. 
A) Desire for ego and status. 
B) Level of income. 
C) Level of wealth. 
D) Prices of other goods.

Exam 5: Consumer Choice

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, diminishing marginal utility occurs

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

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 by consuming

Complete Table 19.3 below.Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit. In Table 19.3, what is the marginal utility of the fifth unit of cola?

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

Refer to Figure 19.1.The total consumer surplus in this market is equal to

Utility maximization is always achieved where total revenue is maximized.

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

When a rational consumer has stopped buying, she or he will have allocated a limited budget so that the marginal utility per good will be the same.

If advertising is successful,

Consumers who actually purchase a good either were willing to pay that price or more.

Which of these examples is an example of price discrimination?

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

Price discrimination occurs when

Airline companies engage in price discrimination by

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

An indifference curve represents combinations of two goods that provide an individual the same total utility.

Optimal consumption is the mix of consumer goods sold that maximizes utility for producers.

Sociopsychiatric explanations of consumer behavior include the

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, diminishing marginal utility occurs