239. Multiple Choice: Tonya’s budget constraint for gasolin...
Question Tonya’s budget constraint for gasoline (G) and clothes (C) each month can be expressed with
the following equation: G = 100 – 2C. If you know that the price of clothing is $10, then this
means the price of gasoline is ________ and the total amount of income spent on both
clothing and gasoline each month is ________.
240. Multiple Choice: Tonya’s budget constraint for gasolin...
Question Tonya’s budget constraint for gasoline (G) and clothes (C) each month can be expressed with
the following equation: G = 100 – 2C. If you know that the price of clothing is $10, which of
the following consumption bundles is not feasible for Tonya?
241. Multiple Choice: Tonya’s budget constraint for gasolin...
Question Tonya’s budget constraint for gasoline (G) and clothes (C) each month can be expressed with
the following equation: G = 100 – 2C. If you know that the price of clothing is $10, which of
the following consumption bundles lies inside Tonya’s budget line?
242. Multiple Choice: We say that consumption bundles that …
Question We say that consumption bundles that Mei cannot afford to consume because the bundles
cost more than her income are:
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243. Multiple Choice: We say that the consumption bundles t…
Question We say that the consumption bundles that Mei can afford but that do not use up her entire
income lie:
244. Multiple Choice: For consumers, the marginal decision …
Question For consumers, the marginal decision on how to allocate an additional dollar allows them to:
245. Multiple Choice: Jie consumes 3 heads of broccoli and ...
Question Jie consumes 3 heads of broccoli and 6 bowls of rice each week. The price of a head of
broccoli is $2 and the price of rice is $4 per bowl. Jie‘s marginal utility from the last head of
broccoli consumed is 4 utils and her marginal utility from her last bowl of rice is 8 utils. If Jie
wants to maximize her utility, Jie should:
246. Multiple Choice: Sam always tries to maximize his util…
Question Sam always tries to maximize his utility in his consumption of popcorn and soft drinks. Both
of these goods are subject to diminishing marginal utility. Suppose the prices of these goods,
along with Sam’s income, do not change, but Sam decides he needs to decrease his
consumption of popcorn. Holding everything else constant, this means that Sam would need
to:
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247. Multiple Choice: When a consumer maximizes utility, th…
Question When a consumer maximizes utility, the marginal utility per dollar spent must be the same
for all goods and services in the consumption bundle. This is referred to as:
248. Multiple Choice: A consumer is attempting to maximize …
Question A consumer is attempting to maximize utility in her consumption of goods A and B. If her
income and the price of good A do not change but the price of good B decreases, this will:
249. Multiple Choice: A decrease in the price of a good, ho…
Question A decrease in the price of a good, holding income and the prices of all other goods constant,
is associated with:
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250. Multiple Choice: When a consumer consumes more of a go...
Question When a consumer consumes more of a good that has become cheaper in place of a good
that has become relatively more expensive, this is known as the:
251. Multiple Choice: The income effect will play a greater…
Question The income effect will play a greater role in a consumer‘s spending if the good:
252. Multiple Choice: Housing is a good that tends to take …
Question Housing is a good that tends to take up a substantial share of a consumer’s spending. If the
price of housing increases, this will result in:
253. Multiple Choice: If the price of a good changes so tha...
Question If the price of a good changes so that the income effect and the substitution effect reinforce
one another, this means the good is:
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not likely to be bought.
254. Multiple Choice: Reference: Ref 10-23 (Table: Denise‘…
Question
Reference: Ref 10-23
(Table: Denise’s Consumption of Coffee and Gasoline) Look at the table Denise‘s Consumption of
Coffee and Gasoline. Given the information provided, the price of each cup of coffee is ________
and the price of each unit of gasoline is ________.
255. Multiple Choice: Reference: Ref 10-23 (Table: Denise‘…
Question
Reference: Ref 10-23
(Table: Denise’s Consumption of Coffee and Gasoline) Look at the table Denise‘s Consumption of
Coffee and Gasoline. Denise will maximize her utility by consuming bundle:
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256. Multiple Choice: Reference: Ref 10-23 (Table: Denise‘…
Question
Reference: Ref 10-23
(Table: Denise’s Consumption of Coffee and Gasoline) Look at the table Denise‘s Consumption of
Coffee and Gasoline. When Denise maximizes her utility, her marginal utility per dollar spent on
gasoline equals:
Answer 0.6 utils per dollar.
257. Multiple Choice: Reference: Ref 10-23 (Table: Denise‘…
Question
Reference: Ref 10-23
(Table: Denise’s Consumption of Coffee and Gasoline) Look at the table Denise‘s Consumption of
Coffee and Gasoline. Suppose Denise initially chooses consumption bundle A. She can increase
her total utility by:
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258. Essay: Many people have severe food allergie…
Question Many people have severe food allergies such that even one bite of something might send a
person to the emergency room. For a person with a severe allergy to nuts, for example,
describe the total utility function from eating nuts.
259. Essay: Explain the difference between the to…
Question Explain the difference between the total utility and marginal utility of eating pieces of pizza.
260. Essay: You have an economics test tomorrow a…
Question You have an economics test tomorrow and you think that you might need to stay up all night
to study for it. Your professor argues against pulling this all-nighter because he thinks there is
a point where more studying (and less sleeping) can actually do more harm than good. Using
the concepts of total and marginal utility, explain your professor’s position.
261. Essay: James spends his daily income of $50 ...
Question James spends his daily income of $50 on protein shakes (PS) and energy bars (EB). Protein
shakes are priced at $5 each and energy bars are priced at $4 each. Provide the equation for
his budget constraint. If he spends half of his income on each item, how many units of each
will he consume?
262. Essay: Table: MP3 Music Downloads Reference:…
Question
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Table: MP3 Music Downloads
Reference: Ref 10-19
(Table: MP3 Music Downloads) Jen spends her daily income of $28 on two goods, MP3
music downloads and jumbo diet sodas. One MP3 music download costs $2, and one jumbo
diet soda costs $4. The table provided shows three consumption bundles. Identify the bundle
that is unaffordable, the one that lies on her budget line, and the one that is affordable but
does not use all of her income.
263. Essay: Ladan has $500 each semester to spend...
Question Ladan has $500 each semester to spend on textbooks and sandwiches. Textbooks are $100
each and sandwiches are $5 each. She has purchased 3 textbooks this semester and 40
sandwiches. She tells you that her marginal utility from the next textbook is about 100 utils
and the marginal utility from the next sandwich is about 15 utils. Has Ladan successfully
maximized her utility this semester? Should she adjust her spending next semester?
264. Essay: Reference: Ref 10-20 (Table: Margina...
Question
Reference: Ref 10-20
(Table: Marginal Utility from Coffee and Comic Books) Look at the table Marginal Utility from
Coffee and Comic Books. Your eccentric professor has a daily budget of $40, and he spends
it entirely on cups of coffee and comic books. The table shows the marginal utility he receives
from consuming different quantities of coffee and comic books. Each comic book is priced at
$8 and each cup of coffee is priced at $4. To maximize his total utility, how many cups of
coffee should he buy, and how many comic books should he buy? How many utils of total
utility will he enjoy?
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265. Essay: The rising price of gasoline has caus...
Question The rising price of gasoline has caused your parents to use public transportation rather than
drive to work. They have also decided to cancel a cross-country trip for a family reunion. Are
there substitution and income effects here? Explain.
266. Essay: Two consumers, Eric and Eli, have the...
Question Two consumers, Eric and Eli, have the same preferences for good X, a normal good. The only
difference is that for Eli there would be no income effect if the price of good X were to change.
For Eric, there are both income and substitution effects for a price change. What does this
tell you about Eric‘s and Eli‘s demand for good X? Explain.
267. Essay: Reference: Ref 10-21 (Utility from C…
Question
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Select: All None Select by Type:
– Question Type –
Reference: Ref 10-21
(Utility from Coffee and Comic Books) Look at the table Utility from Coffee and Comic Books.
Your eccentric professor has a daily budget of $40 and he spends it entirely on cups of coffee
and comic books. The table shows the total utility he receives from consuming different
quantities of coffee and comic books. Each comic book is priced at $8 and each cup of coffee
is priced at $4. To maximize his utility, how many cups of coffee and how many comic books
should he buy? How many utils of total utility will he enjoy?
OK