Economics Chapter 10 Multiple Choice Antonio Derives More Utility From

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157. Multiple Choice: Suppose Ivy buys only two things, boo...

Question Suppose Ivy buys only two things, books and coffee, and receives the same satisfaction from

the last book bought as she did from the last coffee bought. Books cost twice as much as

coffee, and she has spent all her money. If she is trying to maximize her utility,

158. Multiple Choice: Melika spends all her income on two g...

Question Melika spends all her income on two goods, magazines and carry-out lunches. The price of a

magazine is $5, and the price of a carry-out lunch is $7. At the current consumption bundle,

the marginal utility of magazines is 10, and the marginal utility of carry–out lunches is 21. To

maximize utility given her income, Melika should:

159. Multiple Choice: Joseph consumes pizza and soda. He is…

Question Joseph consumes pizza and soda. He is currently consuming three units of pizza and two

units of soda. The price of pizza is $5 and the price of soda is $1. If he is consuming the

optimal consumption bundle and his marginal utility of pizza is 50, then his marginal utility of

soda is:

160. Multiple Choice: Juan spends all of his income on base…

Points: 0

Question Juan spends all of his income on baseball cards and candy. At his current consumption

bundle, the marginal utility of baseball cards is 20 and the marginal utility of candy is 10. If

the price of baseball cards is $10, and the price of candy is $2,

161. Multiple Choice: At the optimal consumption bundle:

Question At the optimal consumption bundle:

162. Multiple Choice: Diego spends all of his income on mil...

Question Diego spends all of his income on milkshakes and French fries. At his current consumption

levels the marginal utility of one milkshake and the marginal utility of one order of French fries

are equal. According to the optimal consumption rule:

163. Multiple Choice: If a consumer purchases a combination...

Question If a consumer purchases a combination of coffee and football tickets such that

MUCoffee/PCoffee = 20 and MUFootball tickets/PFootball tickets = 10, to maximize utility,

the consumer should buy:

Points: 0

164. Multiple Choice: If Minh purchases a combination of di...

Question If Minh purchases a combination of dish soap and floor wax such that MUDish soap/PDish

soap = 50 and MUFloor wax/PFloor wax = 30, to maximize utility, the consumer should buy:

165. Multiple Choice: If Natasha purchases a combination of...

Question If Natasha purchases a combination of ballet slippers and tutus such that

MUSlippers/PSlippers = 20 and MUTutus/PTutus = 5, to maximize utility, Natasha should:

166. Multiple Choice: If Sun purchases a combination of tex…

Question If Sun purchases a combination of textbooks and concert tickets such that

MUTextbooks/PTextbooks= 100 and MUTickets/PTickets = 80, to maximize utility, the

consumer should buy:

167. Multiple Choice: If, for Adam, the marginal utility of...

Question If, for Adam, the marginal utility of ties is greater than the marginal utility of shirts, this

consumer should:

Points: 0

168. Multiple Choice: If a consumer derives more utility by…

Question If a consumer derives more utility by spending an additional $1 on good X rather than on good

Y, then:

169. Multiple Choice: Sally Garcia devotes all of her incom…

Question Sally Garcia devotes all of her income to the consumption of two goods, apples and Reese’s

Peanut Butter Cups. She has just discovered that at her current level of consumption the

marginal utility of an apple is 6 and the marginal utility of a Reese’s Peanut Butter Cup is 8.

Suppose the price of an apple is $0.20 and the price of a Reese’s Peanut Butter Cup is

$0.25. To maximize her total utility, assuming that the goods are divisible, she would:

170. Multiple Choice: Sally Garcia devotes all of her incom…

Question Sally Garcia devotes all of her income to the consumption of two goods, apples and Reese’s

Peanut Butter Cups. She has just discovered that at her current level of consumption the

marginal utility of an apple is 6 and the marginal utility of a Reese’s Peanut Butter Cup is 8.

Suppose the price of an apple is $0.10, while the price of a Reese’s Peanut Butter Cup is

$0.25. To maximize her total utility, assuming that the goods are divisible, she would:

Points: 0

171. Multiple Choice: Assume that Siri is consuming the uti...

Question Assume that Siri is consuming the utility-maximizing quantities of pork and chicken. We can

conclude that:

172. Multiple Choice: John Smedley, a careful utility maxim…

Question John Smedley, a careful utility maximizer, consumes only two goods, peanut butter and ice

cream. He had just achieved the utility-maximizing solution in his consumption of the two

goods when the price of ice cream increases. As he adjusts to this event, he will consume:

173. Multiple Choice: John Smedley, a careful utility maxim…

Question John Smedley, a careful utility maximizer, consumes only two goods, peanut butter and

broccoli. He had just achieved the utility-maximizing solution in his consumption of the two

goods when the price of broccoli increases. As he adjusts to this event, he will consume:

174. Multiple Choice: Jill Smith, a careful utility maximiz...

Question Jill Smith, a careful utility maximizer, consumes only two goods, peanut butter and ice

cream. She had just achieved the utility-maximizing solution in her consumption of the two

goods when the price of peanut butter increases. As she adjusts to this event:

Points: 0

175. Multiple Choice: Michael Kawamura, a careful utility m...

Question Michael Kawamura, a careful utility maximizer, consumes only two goods, peanut butter and

ice cream. He has just achieved the utility-maximizing solution in his consumption of the two

goods when the price of peanut butter falls. As he adjusts to this event:

176. Multiple Choice: Marge has spent her entire budget on ...

Question Marge has spent her entire budget on milk and cookies. The last glass of milk provided Marge

with 10 additional utils and the last cookie provided her with 25 additional utils. The price of a

cookie is twice the price of a glass of milk. Given this information, Marge should:

177. Multiple Choice: Nancy is consuming her optimal consum…

Question Nancy is consuming her optimal consumption bundle of burritos and margaritas. The marginal

utility of her last burrito was 75 utils, and each burrito costs $3. Her marginal utility of her last

margarita was 100 utils. What is the price of a margarita?

178. Multiple Choice: The optimal consumption rule for all ...

Question The optimal consumption rule for all goods requires that:

Answer the marginal utility of all goods consumed divided by the price is equal to the budget

constraint.

Points: 0

179. Multiple Choice: Faced with two goods to buy, diamonds...

Question Faced with two goods to buy, diamonds and silver, a utility-maximizing individual will buy

according to which of the following statements?

180. Multiple Choice: Tori devotes all of her income to the…

Question Tori devotes all of her income to the consumption of two goods, peanut butter and jelly. She

has just discovered that at her current level of consumption the marginal utility of a jar of

peanut butter is 5 and the marginal utility of a jar of jelly is 7. Which of the following

statements is true?

Answer In order to maximize her total utility, Tori would consume more of both goods.

181. Multiple Choice: Antonio derives more utility from spe…

Question Antonio derives more utility from spending an additional dollar on wool boots than on wool

gloves. We can assume that:

Points: 0

182. Multiple Choice: If Paloma is consuming the utility-ma…

Question If Paloma is consuming the utility-maximizing quantities of pizza and soda pop, then we can

conclude that:

183. Multiple Choice: Steven consumes only two goods, both ...

Question Steven consumes only two goods, both of which are normal goods. He is maximizing his

utility in consumption of both goods. Now assume the price of one of the goods falls. How

should Steven adjust his consumption after the change in price?

184. Multiple Choice: Steven consumes only two goods, both ...

Question Steven consumes only two goods, both of which are normal goods. He is maximizing his

utility in consumption of both goods. Now assume the price of one of the goods increases.

How should Steven’s consumption change?

185. Multiple Choice: Steven consumes only two goods, both ...

Question Steven consumes only two goods, both of which are normal goods. He is currently

maximizing his utility in consumption of both goods. Now assume the price of one of the

goods increases. As he adjusts to this event:

Answer

Points: 0

186. Multiple Choice: Steven consumes only two goods, both ...

Question Steven consumes only two goods, both of which are normal goods. He is currently

maximizing his utility in consumption of both goods. Now assume the price of one of the

goods falls. As he adjusts to this event:

187. Multiple Choice: John consumes only two goods, pizza a...

Question John consumes only two goods, pizza and pasta. Both goods are normal goods for John. He

is currently maximizing his utility in consumption of both goods. Now assume the price of

pasta rises. As he adjusts to this even:

188. Multiple Choice: Suppose Wolfgang really likes rutabag...

Question Suppose Wolfgang really likes rutabagas and likes broccoli as well. Suppose the prices of

each good is $0.60 per pound and Wolfgang is maximizing utility. We can conclude that at

the point of maximal utility the marginal utility of:

Points: 0

189. Multiple Choice: Suppose Wolfgang really likes rutabag...

Question Suppose Wolfgang really likes rutabagas and likes broccoli fairly well. Suppose the prices of

both goods are $0.60 per pound and Wolfgang is maximizing utility, consuming 5 pounds of

rutabagas and 0.5 pound of broccoli per month. We can conclude that at the point of maximal

utility:

190. Multiple Choice: Reference: Ref 10-11 (Table: Utility…

Question

Reference: Ref 10-11

(Table: Utility from Milk and Honey) Look at the table Utility from Milk and Honey. Max‘s

marginal utilities for milk and honey are given in the table. The price of milk is $2 and the

price of honey is $4. If Max‘s income is $16, how much milk and how much honey does he

buy to maximize his utility?

Points: 0

6 bottles of milk and 0 jars of honey

191. Multiple Choice: Reference: Ref 10-10 (Table: Utility…

Question

Reference: Ref 10-10

(Table: Utility from Pizza and Beer) Look at the table Utility from Pizza and Beer. At All–

Sports Bar, a bottle of beer costs $4; a slice of pizza costs $2. Denard has $10 to spend on

beer and pizza, and he has the preferences shown in the table. To maximize his utility,

Denard will consume ________ of pizza and ________ of beer.

192. Multiple Choice: Reference: Ref 10-12 (Table: Utility…

Question

Points: 0

Reference: Ref 10-12

(Table: Utility from Burgers and Milkshakes) Look at the table Utility from Burgers and

Milkshakes. David‘s marginal utilities for milkshakes and burgers are given in the table. The

price of milkshakes is $2, and the price of burgers is $5. If David’s income is $22, how many

milkshakes and how many burgers does he buy to maximize his utility?

193. Multiple Choice: Reference: Ref 10-12 (Table: Utility…

Question

Points: 0

Reference: Ref 10-12

(Table: Utility from Burgers and Milkshakes) Look at the table Utility from Burgers and

Milkshakes. David‘s marginal utilities for milkshakes and burgers are given in the table. The

price of milkshakes is $2, and the price of burgers is $5. If David’s income is $10, how many

milkshakes and how many burgers does he buy to maximize his utility?

Answer 1 shake and 1 burger

194. Multiple Choice: Reference: Ref 10-13 (Table: Margina...

Question

Points: 0

Reference: Ref 10-13

(Table: Marginal Utility per Dollar) Look at the table Marginal Utility per Dollar. If Damian has $9 to

spend on potatoes and clams, then the utility-maximizing combination is ________ of clams and

________of potatoes.

Answer 0 pounds; 9 pounds

195. Multiple Choice: Reference: Ref 10-14 (Table: Margina...

Question

Points: 0

Reference: Ref 10-14

(Table: Marginal Utility per Dollar II) Look at the table Marginal Utility per Dollar II. If Manuel has

$18 to spend on potatoes and clams, then the utility-maximizing combination is ________ of

clams and ________ of potatoes.

Answer 5 pounds; 3 pounds

196. Multiple Choice: Reference: Ref 10-15 (Table: Margina...

Question

Points: 0

Reference: Ref 10-15

(Table: Marginal Utility per Dollar III) Look at the table Marginal Utility per Dollar III. If Liyun has $20 to

spend on potatoes and clams, then the utility-maximizing combination is ________ of clams and

________ of potatoes.

197. Multiple Choice: Reference: Ref 10-16 (Table: Margina...

Question

Points: 0

Reference: Ref 10-16

(Table: Marginal Utility per Dollar IV) Look at the table Marginal Utility per Dollar IV. If Ashyra has

$40 to spend on potatoes and clams, then the utility-maximizing combination is ________ of clams

and ________ of potatoes.

Answer 3 pounds; 4 pounds

198. Multiple Choice: Reference: Ref 10-17 (Table: Consume...

Question

Points: 0

Reference: Ref 10-17

(Table: Consumer Equilibrium) Look at the table Consumer Equilibrium. Assume that the

price of both goods is $1 per unit and you consume 3 units of good X and 3 units of good Y.

To maximize utility, assuming that the goods are divisible, you would consume:

Answer less of both X and Y.

199. Multiple Choice: Reference: Ref 10-17 (Table: Consume...

Question

Reference: Ref 10-17

(Table: Consumer Equilibrium) Look at the table Consumer Equilibrium. Assume that the

price of both goods is $1 per unit and you consume 4 units of good X and 2 units of good Y.

To maximize utility, assuming that the goods are divisible, you would consume:

more of X and less of Y.

200. Multiple Choice: Reference: Ref 10-17 (Table: Consume...

Question

Points: 0

Reference: Ref 10-17

(Table: Consumer Equilibrium) Look at the table Consumer Equilibrium. Assume that the

price of good X is $2 per unit and the price of good Y is $1 per unit and you consume 3 units

of good X and 3 units of good Y. To maximize utility, assuming that the goods are divisible,

you would consume:

Answer less of both X and Y.

201. Multiple Choice: Reference: Ref 10-17 (Table: Consume...

Question

Reference: Ref 10-17

(Table: Consumer Equilibrium) Look again at the table Consumer Equilibrium. Assume that

the price of good X is $1 per unit and the price of good Y is $2 per unit and you consume 4

units of good X and 2 units of good Y. To maximize utility, assuming that the goods are

divisible, you would consume:

Answer less of both X and Y.

202. Multiple Choice: Reference: Ref 10-17 (Table: Consume...

Points: 0

Question

Reference: Ref 10-17

(Table: Consumer Equilibrium) Look at the table Consumer Equilibrium. Assume that the

price of both goods X and Y is $1 per unit and you have $4 of income to spend on both goods.

To maximize utility, you would consume ________ units of X and ________ units of Y.

Answer 0; 4

203. Multiple Choice: Reference: Ref 10-17 (Table: Consume...

Question

Reference: Ref 10-17

(Table: Consumer Equilibrium) Look at the table Consumer Equilibrium. Assume that the

price of both good X and good Y is $1 per unit and you have $7 of income to spend on both

goods. To maximize utility, you would consume ________ units of X and ________ units of Y.

Answer 2; 5

204. Multiple Choice: Reference: Ref 10-17 (Table: Consume...

Question

Points: 0