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13 Cards in this Set

  • Front
  • Back
the reason the substitution effect works to encourage a consumer to buy more of a product when its price decreases is
a. the real income of the consumer has been increased
b. the real income of the consumer has been decreased
c. the product is now relatively less expensive than it was
d. other products are now relatively less expansive than they were
Kristin Hansen buys only two goods, food and clothing. Both are normal goods for Kristin. Suppose the price of food decreases. Kristin's consumption of clothing will
a. decrease due to the income effect
b. increase due to the income effect
c. increase due to the substitution efect
d. not change due to the substitution effect
which best expresses the law of diminishing marginal utility
a. the more a person consumes of a product, the smaller becomes the utility that he receives from its consumption
b. the more a person consumes of a product, the smaller bcomes the additional utility that she receives as a result of consuming an additional unit of the product
c. the less a person consumes of a product, the smaller becomes the utility that she receives from its consumption
d. the less a person consumes of a product, the smaller becomes the additional utility that he receives
this consumer begins to experience diminishing marginal utility when he consumes the
a. first candy bar
b. second candy bar
c. third candy bar
d. seventh candy bar
based on lthe data, you can conclude that the
a. marginal utility of the fourth unit is 6
b. marginal utility fo the second unit is 27
c. total utility of 5 units is 42
d. total utility of 3 units is 55
After eating eight chocolate chip cookies, you are offered a ninth cookie. You turn down the cookie. Your refusal indicates that the
a. marginal utility for chocolate chip cookies is negative
b. total utility for chocolate chip cookies is negative
c. marginal utility is positive for the eighth and negative for the ninth cookie
d. total utility was zero because you ate one cookie and refused the other
which is a deminsion or assumption of the marginal utility theory o consumer behavior
a. the consumer has a small income
b. the consumer is rational
c. goods and services are free
d. goods and services yield continually increasing amounts of marginal utility as the consumer buys more of them
to maximize utility, the consumer will buy
a. 7X and 1Y
b. 5X and 2Y
c. 3X and 3Y
d. 1X and 4Y
when the consumer purchases the utility-maximizing combination of goods X and Y, total utility will be
a. 36
b. 45
c. 48
d. 52
suppose that the consumer's income increased from $9 to $12. What would be the utility-maximizing combination of goods X and Y
a. 5X and 2y
b. 6X and 3Y
c. 2X and 5Y
d. 4X and 4Y
what is the level of total utility for the consumer in equilibrium
a. 86
b. 102
c. 108
d. 120
how many units of the two products will the consumer buy
a. 1 of A and 4 of B
b. 2 of A and 2 of B
c. 2 of A and 3 of B
d. 3 of A and 4 of B
if the price of A decreases to $4, then the utility-maximizing conbination of the two products is
a. 2 of A and 2 of B
b. 2 of A and 3 of B
c. 3 of A and 3 of B
d. 4 of A and 4 of B