Question 1

Price discrimination occurs when stores mark down products for sale.

Accepted Answer

A) True 
 B)False

Question 2

Sellers can increase total revenues by charging different individuals the maximum they are willing to pay.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is used to depict all combinations of goods that are affordable with a given income and given prices?

Accepted Answer

A)   An indifference curve.
B)   An indifference map.
C)   A demand curve.
D)   A budget constraint.

Question 5

As more satisfaction is achieved from consuming a good with diminishing marginal utility, then total utility

Accepted Answer

A)   Increases at a decreasing rate.
B)   Decreases as long as marginal utility is negative.
C)   Decreases as long as marginal utility is positive.
D)   Is negative as long as marginal utility is decreasing.

Question 6

If a product has a high marginal utility, then

Accepted Answer

A)   Consumers will not purchase any more of the good.
B)   The demand curve will be downward-sloping.
C)   A consumer is willing to pay a high price for it.
D)   Consumers will also have a low total utility.

Question 7

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.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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) .

Question 10

The law of diminishing marginal utility suggests that

Accepted Answer

A)   People are willing to buy additional quantities of a good only if its price falls.
B)   People will substitute lower-priced goods for more expensive goods, ceteris paribus.
C)   Price and quantity demanded are directly related.
D)   As marginal utility decreases, the willingness to pay increases.

Question 11

Refer to Figure 19.2.With no budget constraint, a rational consumer will consume _________ apple(s) .

Accepted Answer

A)   zero
B)   one
C)   six
D)   an infinite number of

Question 12

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 $1, the consumer would maximize utility by consuming

Accepted Answer

A)   25 units of Y.
B)   21 units of Y.
C)   15 units of Y.
D)   10 units of Y.

Question 13

Complete Table 19.2 below:
  Quantity  Total  Marginal  Consumed  Utility  Utility 115152−9330−4−3\begin{array}{lll}	ext { Quantity } & 	ext { Total } & 	ext { Marginal } \	ext { Consumed } & 	ext { Utility } & 	ext { Utility }\1 & 15 & 15 \2 & -& 9 \3 &30 & - \4 & -& 3\end{array} Quantity  Consumed 1234​ Total  Utility 15−30−​ Marginal  Utility 159−3​ 
Table  19.219.219.2 
Utility Schedule In Table 19.2, the total utility when four units are consumed is

Accepted Answer

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

Question 14

A consumer maximizes total utility from a given amount of income when the

Accepted Answer

A)   Marginal utility obtained from the last dollar spent on each good is the same.
B)   Marginal utility of the last unit of each good is the same.
C)   Total utility obtained from each product is the same.
D)   Amount spent for each product is the same.

Question 15

An individual's consumer surplus is the difference between the maximum price that she or he is willing to pay and the actual price.

Accepted Answer

A) True 
 B)False

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 $1, the optimal consumption is found at point

Accepted Answer

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

Question 17

Which of the following is not a determinant of demand?

Accepted Answer

A)   Desire for the good.
B)   Income of the consumer.
C)   The cost of the factor inputs.
D)   The price of other goods.

Question 18

If marginal utility is rising, then total utility must be falling.

Accepted Answer

A) True 
 B)False

Question 19

Maximum utility is achieved when

Accepted Answer

A)   Total revenue is the greatest.
B)   The price elasticity of demand is 1.0.
C)   Marginal utility is zero.
D)   Total utility equals marginal utility.

Question 20

All of the possible combinations of two goods that lie on one indifference curve

Accepted Answer

A)   Give the consumer the highest possible utility.
B)   Yield the same level of utility.
C)   Are affordable.
D)   Yield the same level of marginal utility.

Exam 5: Consumer Choice

Maximum utility is achieved when

Correct Answer
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Correct Answer
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Price discrimination occurs when stores mark down products for sale.

Correct Answer
verified

The law of diminishing marginal utility suggests that

Correct Answer
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An individual's consumer surplus is the difference between the maximum price that she or he is willing to pay and the actual price.

Correct Answer
verified

As more satisfaction is achieved from consuming a good with diminishing marginal utility, then total utility

Correct Answer
verified

Refer to Figure 19.2.With no budget constraint, a rational consumer will consume _________ apple(s) .

Correct Answer
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If marginal utility is rising, then total utility must be falling.

Correct Answer
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If marginal utility is negative, then

Correct Answer
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A consumer maximizes total utility from a given amount of income when the

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

Correct Answer
verified

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

Correct Answer
verified

If a product has a high marginal utility, then

Correct Answer
verified

Which of the following is used to depict all combinations of goods that are affordable with a given income and given prices?

Correct Answer
verified

Correct Answer
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Sellers can increase total revenues by charging different individuals the maximum they are willing to pay.

Correct Answer
verified

Which of the following is not a determinant of demand?

Correct Answer
verified

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 $1, the consumer would maximize utility by consuming

Correct Answer
verified

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 $1, the optimal consumption is found at point

Correct Answer
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All of the possible combinations of two goods that lie on one indifference curve

Correct Answer
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Exam 5: Consumer Choice

Maximum utility is achieved when

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Price discrimination occurs when stores mark down products for sale.

Correct AnswerverifiedShow Answer

The law of diminishing marginal utility suggests that

Correct AnswerverifiedShow Answer

An individual's consumer surplus is the difference between the maximum price that she or he is willing to pay and the actual price.

Correct AnswerverifiedShow Answer

As more satisfaction is achieved from consuming a good with diminishing marginal utility, then total utility

Correct AnswerverifiedShow Answer

Refer to Figure 19.2.With no budget constraint, a rational consumer will consume _________ apple(s) .

Correct AnswerverifiedShow Answer

If marginal utility is rising, then total utility must be falling.

Correct AnswerverifiedShow Answer

If marginal utility is negative, then

Correct AnswerverifiedShow Answer

A consumer maximizes total utility from a given amount of income when the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a product has a high marginal utility, then

Correct AnswerverifiedShow Answer

Which of the following is used to depict all combinations of goods that are affordable with a given income and given prices?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Sellers can increase total revenues by charging different individuals the maximum they are willing to pay.

Correct AnswerverifiedShow Answer

Which of the following is not a determinant of demand?

Correct AnswerverifiedShow Answer

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 $1, the consumer would maximize utility by consuming

Correct AnswerverifiedShow Answer

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 $1, the optimal consumption is found at point

Correct AnswerverifiedShow Answer

All of the possible combinations of two goods that lie on one indifference curve

Correct AnswerverifiedShow Answer

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