Question 1

Market demand is identical to individual demand.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

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

Question 3

Any point on the budget constraint

Accepted Answer

A)  Gives the consumer the highest level of utility.
B)  Represent a combination of two goods that are affordable.
C)  Represents combinations of two goods that yield the same utility.
D)  Reflects the price of one good divided by the price of another good.

Question 4

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.

Question 5

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 6

The law of diminishing marginal utility states that

Accepted Answer

A)  The total utility of consuming the next unit of a good falls.
B)  As a consumer enjoys successive units of a good,eventually marginal utility will fall.
C)  Marginal utility always falls to zero after two or three units of a good consumed.
D)  The total utility of a good rises at a fast rate as more units of a good are consumed.

Question 7

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)  D.
C)  E.
D)  C.

Question 8

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 9

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.

Question 10

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.

Question 11

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 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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.

Question 15

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

Accepted Answer

A)  Marginal utility per dollar obtained from the last unit of 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 16

Price discrimination is illegal in the United States.

Accepted Answer

A) True 
 B)False

Question 17

Refer to Figure 19.2.Diminishing marginal utility begins after

Accepted Answer

A)  The fourth apple.
B)  The fifth apple.
C)  The third apple.
D)  The first apple.

Question 18

An indifference curve shows the

Accepted Answer

A)  Maximum utility that can be achieved for a given consumer budget.
B)  Maximum utility that can be achieved for different amounts of a good.
C)  Combinations of goods giving equal utility to a consumer.
D)  Optimal consumption combinations between two goods.

Question 19

Table 19.2   Quantity Consumed 1234 Total Utility1530 Marginal Utility1593\begin{array}{c}\begin{array}{|c|}\hline	ext { Quantity Consumed }\\hline1 \\hline 2 \\hline 3 \\hline 4\\hline\end{array}\begin{array}{c|}\hline	ext { Total Utility}\\hline15\\hline\\hline30\\hline\\hline\end{array}\begin{array}{c|}\hline	ext { Marginal Utility}\\hline15\\hline9\\hline\\hline3\\hline\end{array}\end{array} Quantity Consumed 1234​​ Total Utility1530​​ Marginal Utility1593​​​

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

Accepted Answer

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

Question 20

Most goods can yield

Accepted Answer

A)  Only positive marginal utility.
B)  Both positive and negative marginal utility.
C)  Only negative marginal utility.
D)  Only zero marginal utility.

Exam 19: Consumer Choice

The law of diminishing marginal utility states that

Correct Answer
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Price discrimination is illegal in the United States.

Correct Answer
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The law of diminishing marginal utility suggests that

Correct Answer
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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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Most goods can yield

Correct Answer
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If a product has a high marginal utility,then

Correct Answer
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Sellers can gain profits from price discrimination because

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

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

Correct Answer
verified
Rational consumers maximize total utilit...
View Answer

Any point on the budget constraint

Correct Answer
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Refer to Figure 19.2.Diminishing marginal utility begins after

Correct Answer
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Market demand is identical to individual demand.

Correct Answer
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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.

Correct Answer
verified

If advertising is successful,

Correct Answer
verified

An indifference curve shows the

Correct Answer
verified

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

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

Correct Answer
verified

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

Correct Answer
verified

Exam 19: Consumer Choice

The law of diminishing marginal utility states that

Correct AnswerverifiedShow Answer

Price discrimination is illegal in the United States.

Correct AnswerverifiedShow Answer

The law of diminishing marginal utility suggests that

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

Most goods can yield

Correct AnswerverifiedShow Answer

If a product has a high marginal utility,then

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Sellers can gain profits from price discrimination because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedRational consumers maximize total utilit...View AnswerShow Answer

Any point on the budget constraint

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Refer to Figure 19.2.Diminishing marginal utility begins after

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Market demand is identical to individual demand.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

If advertising is successful,

Correct AnswerverifiedShow Answer

An indifference curve shows the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Rational consumers maximize total utilit...
View Answer

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