Question 1

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 2

Which industry here is unlikely to exhibit price discrimination?

Accepted Answer

A) Airlines. 
B) New cars. 
C) Supermarkets. 
D) Colleges. 
A) Airlines. 
B) New cars. 
C) Supermarkets. 
D) Colleges.

Question 3

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 4

Refer to Figure 19.1.Ben's consumer surplus is equal to

Accepted Answer

A) $50. 
B) $100. 
C) $200. 
D) $0. 
A) $50. 
B) $100. 
C) $200. 
D) $0.

Question 5

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 $19.2$}$
$\text {Utility Schedule}$ 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 6

Advertisers currently spend about $1 million per year to change the demand for products.

Accepted Answer

A) True 
 B)False

Question 7

If Josh's income increases, then

Accepted Answer

A) His entire budget constraint will shift toward the origin. 
B) His entire budget constraint will shift away from the origin. 
C) His indifference curves will shift away from the origin. 
D) One end of his budget constraint will move away from the origin. 
A) His entire budget constraint will shift toward the origin. 
B) His entire budget constraint will shift away from the origin. 
C) His indifference curves will shift away from the origin. 
D) One end of his budget constraint will move away from the origin.

Question 8

If there is no budget constraint, utility maximization is achieved when marginal utility is zero.

Accepted Answer

A) True 
 B)False

Question 9

Marginal utility represents the additional satisfaction obtained from one more unit of a good or service.

Accepted Answer

A) True 
 B)False

Question 10

Price discrimination is ________ in the United States and ________ practiced.

Accepted Answer

A) legal; rarely 
B) illegal; widely 
C) legal; often 
D) illegal; rarely 
A) legal; rarely 
B) illegal; widely 
C) legal; often 
D) illegal; rarely

Question 11

If marginal utility is negative, then

Accepted Answer

A) Total utility will increase with additional consumption. 
B) Total utility will decrease with additional consumption. 
C) The good or service being consumed is an inferior good. 
D) Total utility is at a minimum. 
A) Total utility will increase with additional consumption. 
B) Total utility will decrease with additional consumption. 
C) The good or service being consumed is an inferior good. 
D) Total utility is at a minimum.

Question 12

Explain how a rational consumer decides which goods to buy.

Accepted Answer

Rational consumers are aware of their bu

Question 13

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, given an income of $30 and a price for good Y of $1, which of the following two points represent optimal consumption?

Accepted Answer

A) A when the price of X is $3 and C when the price of X is $1. 
B) B when the price of X is $1 and D when the price of X is $3. 
C) A when the price of X is $1 and D when the price of X is $3. 
D) B when the price of X is $1 and C when the price of X is $3. 
A) A when the price of X is $3 and C when the price of X is $1. 
B) B when the price of X is $1 and D when the price of X is $3. 
C) A when the price of X is $1 and D when the price of X is $3. 
D) B when the price of X is $1 and C when the price of X is $3.

Question 14

Marginal utility is

Accepted Answer

A) The sum of the total utility of consuming a certain amount of a good. 
B) The additional utility a consumer enjoys from the consumption of one more unit of a good. 
C) The diminishing nature of total utility. 
D) Always negative or zero. 
A) The sum of the total utility of consuming a certain amount of a good. 
B) The additional utility a consumer enjoys from the consumption of one more unit of a good. 
C) The diminishing nature of total utility. 
D) Always negative or zero.

Question 15

The In the News article titled "Men vs.Women: How They Spend" differentiates the spending habits of women and men: "Men spend almost twice as much as women do on electronic equipment … young women spend twice as much money on clothing, personal care items, and their pets." Which determinant of demand is most likely involved?

Accepted Answer

A) Income. 
B) Tastes. 
C) Expectations. 
D) Other goods (availability and prices). 
A) Income. 
B) Tastes. 
C) Expectations. 
D) Other goods (availability and prices).

Question 16

Economists focus on the effect of changes in income and prices in influencing actual consumer purchases.

Accepted Answer

A) True 
 B)False

Question 17

Total utility is

Accepted Answer

A) The additional utility from consuming one more unit of a good. 
B) The sum of the marginal utilities from the consumption of good. 
C) A function that always falls as a buyer enjoys more units of a good. 
D) How much utility a seller gets from producing a good. 
A) The additional utility from consuming one more unit of a good. 
B) The sum of the marginal utilities from the consumption of good. 
C) A function that always falls as a buyer enjoys more units of a good. 
D) How much utility a seller gets from producing a good.

Question 18

Colleges do not engage in price discrimination because it is illegal.

Accepted Answer

A) True 
 B)False

Question 19

Jose goes to an all-you-can-eat buffet at a Chinese restaurant and consumes three plates of food.He does not go back for a fourth plate of food because

Accepted Answer

A) The price of the fourth plate is too high. 
B) He has reached the point of increasing marginal utility. 
C) The marginal utility of the fourth plate would be zero or even negative. 
D) His total utility would increase with the fourth plate of food. 
A) The price of the fourth plate is too high. 
B) He has reached the point of increasing marginal utility. 
C) The marginal utility of the fourth plate would be zero or even negative. 
D) His total utility would increase with the fourth plate of food.

Question 20

Assume that Anna buys peanut butter and bread.If the price of peanut butter falls, then

Accepted Answer

A) One end of her budget constraint will move away from the origin. 
B) Her entire budget constraint will shift toward the origin. 
C) Her entire budget constraint will shift away from the origin. 
D) Her indifference curves will shift away from the origin. 
A) One end of her budget constraint will move away from the origin. 
B) Her entire budget constraint will shift toward the origin. 
C) Her entire budget constraint will shift away from the origin. 
D) Her indifference curves will shift away from the origin.

Exam 5: Consumer Choice

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

Which industry here is unlikely to exhibit price discrimination?

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

Refer to Figure 19.1.Ben's consumer surplus is equal to

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 Utility Schedule\text {Utility Schedule}Utility Schedule In Table 19.2, the marginal utility of the third unit is

Advertisers currently spend about $1 million per year to change the demand for products.

If Josh's income increases, then

If there is no budget constraint, utility maximization is achieved when marginal utility is zero.

Marginal utility represents the additional satisfaction obtained from one more unit of a good or service.

Price discrimination is ________ in the United States and ________ practiced.

If marginal utility is negative, then

Explain how a rational consumer decides which goods to buy.

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, given an income of $30 and a price for good Y of $1, which of the following two points represent optimal consumption?

Marginal utility is

Economists focus on the effect of changes in income and prices in influencing actual consumer purchases.

Total utility is

Colleges do not engage in price discrimination because it is illegal.

Jose goes to an all-you-can-eat buffet at a Chinese restaurant and consumes three plates of food.He does not go back for a fourth plate of food because

Assume that Anna buys peanut butter and bread.If the price of peanut butter falls, then

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

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 1 15 15 2 9 3 30 4 3 $\text {Table 19.2}$ $\text {Utility Schedule}$ In Table 19.2, the marginal utility of the third unit is

Price discrimination is in the United States and practiced.