Question 1

The relation between an individual's consumption bundle and her satisfaction is called a _____ function.

Accepted Answer

A)   demand
B)   production
C)   consumption
D)   utilityE) A) and C)
F) B) and C)

Question 2

The utility of a good is determined by how much _____ a particular consumer obtains from it.

Accepted Answer

A)   satisfaction
B)   usefulness
C)   cost
D)   need fulfillmentE) None of the above
F) B) and C)

Question 3

Chuck spends all of his income on tacos and milkshakes. His income is $100, the price of tacos is $10, and the price of milkshakes is $2. If the price of each good doubles and Chuck's income doubles:

Accepted Answer

A)   Chuck's budget line will be unaffected.
B)   Chuck's budget line will shift out.
C)   Chuck's budget line will shift in.
D)   Chuck will be able to buy more of both goods.E) A) and B)
F) A) and C)

Question 4

Suppose bad weather and pollution dramatically reduce the supply of crawfish in Louisiana next year. This would most likely lead to _____ in the marginal utility of crawfish consumption.

Accepted Answer

A)   an increase
B)   a decrease
C)   no change
D)   substitution and income effectsE) A) and C)
F) A) and B)

Question 5

Use the following to answer questions 
Figure and Table: The Budget Line  
-(Figure and Table: The Budget Line)  Look at the figure and table The Budget Line. _____ in the price of clams would rotate the budget line along the _____ axis _____ the origin.

Accepted Answer

A)   An increase; horizontal; toward
B)   A decrease; horizontal; toward
C)   An increase; vertical; toward
D)   A decrease; vertical; away fromE) B) and D)
F) None of the above

Question 6

Use the following to answer questions 
Figure and Table: The Budget Line  
-(Figure and Table: The Budget Line)  Look at the figure and table The Budget Line. _____ in the price of clams would rotate the budget line along the _____ axis _____ the origin.

Accepted Answer

A)   An increase; horizontal; away from
B)   A decrease; horizontal; away from
C)   An increase; vertical; toward
D)   A decrease; vertical; away fromE) A) and C)
F) All of the above

Question 7

To say that you can't have too much of a good thing means that for any good that you enjoy (for example, pizza) :

Accepted Answer

A)   higher consumption will always lead to higher utility.
B)   higher consumption will cause utility to decrease at an increasing rate.
C)   higher consumption will increase utility, but only up to a point; after that utility will start to decrease.
D)   it is valid to measure utility in utils.E) A) and D)
F) B) and D)

Question 8

In economics, the ability of pumpkin pie to satisfy a want is referred to as its:

Accepted Answer

A)   utility.
B)   usefulness.
C)   worthiness.
D)   necessity.E) All of the above
F) B) and C)

Question 9

How much _____ Susan obtains from eating green beans is a measure of the utility of green beans for her.

Accepted Answer

A)   efficiency
B)   usefulness
C)   cost
D)   satisfactionE) B) and D)
F) A) and B)

Question 10

The amount by which an additional unit of a good or service changes a consumer's total satisfaction, all other things unchanged, is _____ utility.

Accepted Answer

A)   marginal
B)   maximum
C)   average
D)   requiredE) A) and B)
F) A) and C)

Question 11

Utility is the:

Accepted Answer

A)   difference between a firm's total revenue and its total economic cost.
B)   good not adequately provided by a free market and usually provided by the government.
C)   satisfaction consumers derive from their consumption of goods and services.
D)   lowest price that buyers are willing to pay for a given quantity of a good.E) A) and B)
F) A) and C)

Question 12

Chuck spends all of his income on tacos and milkshakes. His income is $100, the price of tacos is $10, and the price of milkshakes is $2. Put tacos on the horizontal axis and milkshakes on the vertical axis. The vertical for Chuck's budget line is _____ milkshakes.

Accepted Answer

A)   50
B)   10
C)   5
D)   100E) A) and C)
F) B) and C)

Question 13

An individual gets 5 units of utility from one slice of pizza and 9 units of utility from two slices of pizza. The principle of diminishing marginal utility implies that the total utility from three slices of pizza will be _____ units of utility.

Accepted Answer

A)   exactly 12
B)   less than 13
C)   less than 9
D)   more than 14E) A) and B)
F) None of the above

Question 14

Economists identify the satisfaction a person derives from the consumption of goods and services as:

Accepted Answer

A)   happiness.
B)   usefulness.
C)   utility.
D)   pleasure.E) A) and C)
F) C) and D)

Question 15

Economists describe the satisfaction consumers receive from consuming goods and services as:

Accepted Answer

A)   utility.
B)   income effects.
C)   budget constraints.
D)   substitution effects.E) B) and C)
F) A) and B)

Question 16

Which of the following goods is MOST likely to display increasing marginal utility over some range?

Accepted Answer

A)   chicken during the 1920s, when it was considered a luxury good
B)   paint, because you need enough to paint at least one entire room
C)   lobsters, which are so expensive that you must eat two to get your money's worth
D)   peanut butter and jelly sandwichesE) A) and D)
F) A) and C)

Question 17

Use the following to answer questions 
Figure: Budget Lines for Tea and Scones 
-(Figure: Budget Lines for Tea and Scones)  Look at the figure Budget Lines for Tea and Scones. For months now, Agnes has had $20 per month to spend on tea and scones. The price of each cup of tea and each scone has been $1. Which of the charts shows what will happen to her budget line if the price of both a cup of tea and a scone increase to $2?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) None of the above
F) A) and C)

Question 18

Use the following to answer questions 
Scenario: Tom's Budget Constraint
Tom is trying to decide how to allocate his $50 budget for music downloads and online movie streaming when the price of a music download is $1 and the price of a movie is $5.
-(Scenario: Tom's Budget Constraint)  Read the scenario Tom's Budget Constraint. The combination _____ music downloads and _____ movies lies ON Tom's budget line.

Accepted Answer

A)   50; 10
B)   50; no
C)   no; 5
D)   100; 5E) None of the above
F) A) and C)

Question 19

On a sparsely populated island, high-speed Internet service would have a _____ marginal utility than in New York City, while in New York City quiet evenings would carry a _____ marginal utility than on a deserted island.

Accepted Answer

A)   lower; higher
B)   higher; lower
C)   lower; lower
D)   higher; higherE) A) and B)
F) B) and C)

Question 20

Whatever the relevant time, Molly's spending will be _____ by her _____.

Accepted Answer

A)   unlimited; marginal utility
B)   limited; marginal utility
C)   limited; budget
D)   unlimited; budgetE) A) and B)
F) A) and C)

Exam 9: The Rational Consumer

Utility is the:

Correct Answer
verified

Use the following to answer questions Figure and Table: The Budget Line -(Figure and Table: The Budget Line) Look at the figure and table The Budget Line. ___ in the price of clams would rotate the budget line along the _ axis ___ the origin.

Correct Answer
verified

Chuck spends all of his income on tacos and milkshakes. His income is $100, the price of tacos is $10, and the price of milkshakes is $2. Put tacos on the horizontal axis and milkshakes on the vertical axis. The vertical for Chuck's budget line is _____ milkshakes.

Correct Answer
verified

How much _____ Susan obtains from eating green beans is a measure of the utility of green beans for her.

Correct Answer
verified

To say that you can't have too much of a good thing means that for any good that you enjoy (for example, pizza) :

Correct Answer
verified

The utility of a good is determined by how much _____ a particular consumer obtains from it.

Correct Answer
verified

Suppose bad weather and pollution dramatically reduce the supply of crawfish in Louisiana next year. This would most likely lead to _____ in the marginal utility of crawfish consumption.

Correct Answer
verified

Chuck spends all of his income on tacos and milkshakes. His income is $100, the price of tacos is $10, and the price of milkshakes is $2. If the price of each good doubles and Chuck's income doubles:

Correct Answer
verified

Correct Answer
verified

The amount by which an additional unit of a good or service changes a consumer's total satisfaction, all other things unchanged, is _____ utility.

Correct Answer
verified

On a sparsely populated island, high-speed Internet service would have a _ marginal utility than in New York City, while in New York City quiet evenings would carry a _ marginal utility than on a deserted island.

Correct Answer
verified

Use the following to answer questions Figure and Table: The Budget Line -(Figure and Table: The Budget Line) Look at the figure and table The Budget Line. ___ in the price of clams would rotate the budget line along the _ axis ___ the origin.

Correct Answer
verified

Correct Answer
verified

Economists identify the satisfaction a person derives from the consumption of goods and services as:

Correct Answer
verified

In economics, the ability of pumpkin pie to satisfy a want is referred to as its:

Correct Answer
verified

An individual gets 5 units of utility from one slice of pizza and 9 units of utility from two slices of pizza. The principle of diminishing marginal utility implies that the total utility from three slices of pizza will be _____ units of utility.

Correct Answer
verified

Economists describe the satisfaction consumers receive from consuming goods and services as:

Correct Answer
verified

Whatever the relevant time, Molly's spending will be _ by her _.

Correct Answer
verified

Which of the following goods is MOST likely to display increasing marginal utility over some range?

Correct Answer
verified

The relation between an individual's consumption bundle and her satisfaction is called a _____ function.

Correct Answer
verified

Exam 9: The Rational Consumer

Utility is the:

Correct AnswerverifiedShow Answer

Use the following to answer questions Figure and Table: The Budget Line -(Figure and Table: The Budget Line) Look at the figure and table The Budget Line. _____ in the price of clams would rotate the budget line along the _____ axis _____ the origin.

Correct AnswerverifiedShow Answer

Chuck spends all of his income on tacos and milkshakes. His income is $100, the price of tacos is $10, and the price of milkshakes is $2. Put tacos on the horizontal axis and milkshakes on the vertical axis. The vertical for Chuck's budget line is _____ milkshakes.

Correct AnswerverifiedShow Answer

How much _____ Susan obtains from eating green beans is a measure of the utility of green beans for her.

Correct AnswerverifiedShow Answer

To say that you can't have too much of a good thing means that for any good that you enjoy (for example, pizza) :

Correct AnswerverifiedShow Answer

The utility of a good is determined by how much _____ a particular consumer obtains from it.

Correct AnswerverifiedShow Answer

Suppose bad weather and pollution dramatically reduce the supply of crawfish in Louisiana next year. This would most likely lead to _____ in the marginal utility of crawfish consumption.

Correct AnswerverifiedShow Answer

Chuck spends all of his income on tacos and milkshakes. His income is $100, the price of tacos is $10, and the price of milkshakes is $2. If the price of each good doubles and Chuck's income doubles:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The amount by which an additional unit of a good or service changes a consumer's total satisfaction, all other things unchanged, is _____ utility.

Correct AnswerverifiedShow Answer

On a sparsely populated island, high-speed Internet service would have a _____ marginal utility than in New York City, while in New York City quiet evenings would carry a _____ marginal utility than on a deserted island.

Correct AnswerverifiedShow Answer

Use the following to answer questions Figure and Table: The Budget Line -(Figure and Table: The Budget Line) Look at the figure and table The Budget Line. _____ in the price of clams would rotate the budget line along the _____ axis _____ the origin.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economists identify the satisfaction a person derives from the consumption of goods and services as:

Correct AnswerverifiedShow Answer

In economics, the ability of pumpkin pie to satisfy a want is referred to as its:

Correct AnswerverifiedShow Answer

An individual gets 5 units of utility from one slice of pizza and 9 units of utility from two slices of pizza. The principle of diminishing marginal utility implies that the total utility from three slices of pizza will be _____ units of utility.

Correct AnswerverifiedShow Answer

Economists describe the satisfaction consumers receive from consuming goods and services as:

Correct AnswerverifiedShow Answer

Whatever the relevant time, Molly's spending will be _____ by her _____.

Correct AnswerverifiedShow Answer

Which of the following goods is MOST likely to display increasing marginal utility over some range?

Correct AnswerverifiedShow Answer

The relation between an individual's consumption bundle and her satisfaction is called a _____ function.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Use the following to answer questions Figure and Table: The Budget Line -(Figure and Table: The Budget Line) Look at the figure and table The Budget Line. ___ in the price of clams would rotate the budget line along the _ axis ___ the origin.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

On a sparsely populated island, high-speed Internet service would have a _ marginal utility than in New York City, while in New York City quiet evenings would carry a _ marginal utility than on a deserted island.

Correct Answer
verified

Use the following to answer questions Figure and Table: The Budget Line -(Figure and Table: The Budget Line) Look at the figure and table The Budget Line. ___ in the price of clams would rotate the budget line along the _ axis ___ the origin.

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Whatever the relevant time, Molly's spending will be _ by her _.

Correct Answer
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Correct Answer
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Correct Answer
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