58) Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound and
bananas cost $1 per pound. The marginal utility is 30 for the last pound of mangos purchased and
10 for the last pound of bananas. To maximize his utility, Robinson should buy
A) more mangos and fewer bananas.
B) more bananas and fewer mangos.
C) the present combination of goods.
D) only mangos.
59) Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound and
bananas cost $1 per pound. The marginal utility is 24 for the last pound of mangos purchased and
10 for the last pound of bananas. To maximize his utility, Robinson should buy
A) more mangos and fewer bananas.
B) more bananas and fewer mangos.
C) the present combination of goods.
D) only mangos.
60) Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound and
bananas cost $1 per pound. The marginal utility is 30 for the last pound of mangos purchased and
8 for the last pound of bananas. To maximize his utility, Robinson should buy
A) more mangos and fewer bananas.
B) more bananas and fewer mangos.
C) the present combination of goods.
D) only bananas.
61) Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound.
Robinson’s marginal utility is 30 for the last pound of mangos purchased and 10 for the last
pound of bananas. If Robinson maximizes his utility from consuming these goods, the price of
bananas is
A) $0.50 per pound.
B) $1 per pound.
C) $2 per pound.
D) $3 per pound.
62) Michelle spends all of her income on mangos and rice. Mangos cost $2 per pound and rice
costs $1.50 per pound. If Michelle is spending all of her income and the marginal utility per
dollar spent is 20 for the last pound of mangos purchased and 10 for the last pound of rice
purchased, then
A) Michelle is maximizing utility from her present consumption bundle.
B) Michelle should buy more rice and fewer mangos in order to maximize utility.
C) Michelle should buy more mangos and less rice to maximize utility.
D) None of the above answers is correct.
63) Joe consumes pizza and movies. He is currently spending his entire income and his marginal
utility of pizza is 10 and his marginal utility of movies is 5. If the price of a pizza is $10 and the
price of a movie is $5, then to maximize his utility Joe should
A) increase consumption of pizza and decrease consumption of movies.
B) increase consumption of movies and decrease consumption of pizza.
C) not change his current bundle of movies and pizza.
D) increase consumption of both goods.
64) Joe consumes pizza and movies. He is currently spending his entire income and his marginal
utility of pizza is 15 and his marginal utility of movies is 10. If the price of a pizza is $10 and the
price of a movie is $5, then to maximize his utility Joe should
A) increase consumption of pizza and decrease consumption of movies.
B) increase consumption of movies and decrease consumption of pizza.
C) not change his current bundle of movies and pizza.
D) increase consumption of both goods.
65) Lisa is spending all of her income on compact discs and downloadable games for her smart
phone. She finds that the marginal utility from the last compact disc she buys is 30 and the
marginal utility from the last downloadable game is 10. The price of a compact disc is $15 and
the price of a downloadable game is $5. Lisa should
A) increase her consumption of compact discs.
B) increase her consumption of downloadable games.
C) not change her consumption of downloadable games and compact discs.
D) decrease the price of downloadable games.
66) Gil can consume either pens or milkshakes. Both pens and milkshakes sell for $1. Gil finds
that when his income is spent, his marginal utility of pens will be 10 while his marginal utility of
milkshakes will be 8. Gil could increase his utility without violating his budget by consuming
A) more pens and fewer milkshakes.
B) more pens and more milkshakes.
C) fewer pens and fewer milkshakes.
D) fewer pens and more milkshakes.
67) Sam spends all of his income on textbooks and hot dogs. The price of a textbook is $40 and
the price of a hot dog is $0.50. If Sam is maximizing his utility and the marginal utility he
derives from the last textbook he purchases is 400, then the marginal utility he derives from his
last hot dog purchased must be
A) 400.
B) 10.
C) 5.
D) 20.
68) Brian consumes only pizza and soda. When the price of a soda is $2 and the price of a slice
of pizza is $4, Brian maximizes his utility by buying 5 sodas and 10 slices of pizza. If the
marginal utility of the 5th soda is 100, then the marginal utility from the 10th slice of pizza must
be ________.
A) 200
B) 100
C) 50
D) More information is needed to determine the marginal utility of the 10th slice of pizza.
69) Suppose the price of soda is $2 each and the price of a pizza slice is $4 each. Jean maximizes
utility and buys only sodas and slices of pizza. If the price of a soda increases to $3 each, Jean’s
marginal utility per soda
A) will increase and she’ll buy more soda.
B) will decrease and she’ll buy fewer sodas.
C) will decrease and she’ll buy more pizza.
D) Both B and C are correct.
Bags of Popcorn Bottles of soda
Quantity
Marginal
utility
Quantity
Marginal
utility
1
100
1
60
2
80
2
50
3
60
3
30
4
50
4
20
70) In the table above, if Brent maximizes his utility by consuming 3 bags of popcorn and 3
bottles of soda, then the ratio of the price of popcorn to the price of soda is expected to be
A) 1/2.
B) 5/6.
C) 6/5.
D) 2.
71) Jenny buys sodas and popcorn. Sodas sell for $1 and popcorn sells for $2 a bag. Currently
she is in consumer equilibrium, with the marginal utility from her last dollar spent on popcorn
equal to 100 units of utility. The marginal utility from her last dollar spent on sodas is
A) 20 units of utility.
B) 30 units of utility.
C) 50 units of utility.
D) 100 units of utility.
72) Usharani consumes 35 apples a week and 14 loaves of bread. Apples cost $1 each and bread
costs $2 per loaf. Usharani is maximizing his utility and finds that the marginal utility from his
35th apple
A) equals his marginal utility from his 14th loaf of bread.
B) is twice his marginal utility from his 14th loaf of bread.
C) is half his marginal utility from his 14th loaf of bread.
D) is such that his total utility from apples equals his total utility from bread.
73) Shaniq has seen two movies this week and two baseball games. Her marginal utility of one
more movie is 20 and her marginal utility of one more baseball game is 30. Shaniq will go to a
baseball game tonight, rather than to another movie
A) no matter how much more the baseball game costs compared to the movie.
B) if the baseball game costs $10.00 and the movie costs $7.00.
C) if the baseball game costs $10.00 and the movie costs $5.00.
D) Both answers B and C are correct.
74) Suppose Hank spends his entire budget buying 2 bagels and 3 cups of coffee each day. Also,
suppose the marginal utility of the second bagel is 100 and the marginal utility of the third cup of
coffee is 200. Which of the following statements is TRUE?
A) Hank is not maximizing his utility.
B) Hank will be maximizing his utility as long as the price of a cup of coffee is twice the price of
a bagel.
C) Hank might be maximizing utility only if the price of a cup of coffee is less than the price of a
bagel.
D) Hank is not maximizing utility because he is not buying equal amounts of each good.
75) Suppose Hanna spends her entire budget buying bagels and cups of coffee each day. Also,
suppose the marginal utility of her last bagel is 100 and the marginal utility of her last cup of
coffee is 200. If the price of a bagel is $4 and the price of a cup of coffee is $2, then
A) Hanna needs to decrease her consumption of bagels to maximize her utility.
B) Hanna needs to increase her consumption of bagels to maximize her utility.
C) Hanna should buy half as many bagels as coffee in order to maximize her utility.
D) bagels must provide more total utility than coffee.
76) Sarah consumes pizzas and hamburgers. The price of a hamburger is $1 and the marginal
utility from her last hamburger is 5. Let Pp be the price of a pizza and MUp be the marginal
utility of pizzas. In consumer equilibrium, the ratio MUp/Pp for Sarah’s last pizza must equal
A) 0.2.
B) 1.0.
C) 5.0.
D) infinity.
77) Sarah consumes only strawberries and cream, and she is spending all of her income. Her
marginal utility of her last dish of strawberries is 200 and her marginal utility of her last pint of
cream is 200. The price of strawberries is $1.00 per dish and the price of cream is $2.00 per pint.
To maximize her utility, Sarah should
A) buy more strawberries and less cream.
B) buy more cream and less strawberries.
C) not change her purchases of strawberries and cream.
D) definitely buy no cream at her consumer equilibrium.
Quantity of
pizza
Total utility
from pizza
Quantity of
Diet Pepsi
Total utility
from Diet
Pepsi
0
0
0
0
1
24
1
14
2
44
2
26
3
60
3
36
4
72
4
44
5
76
5
50
6
79
6
54
7
80
7
56
78) Suppose that you consume only pizza and Diet Pepsi. The table above gives your utility from
consuming these two goods. What is the marginal utility you get from the fourth slice of pizza?
A) 36
B) 18
C) 12
D) 4
79) Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs
$2 each. The table above gives your utility from consuming these two goods. If your income is
$14, which of the following consumption combinations will you choose?
A) 3 slices of pizza and 1 Diet Pepsi
B) 2 slices of pizza and 3 Diet Pepsis
C) 1 slice of pizza and 5 Diet Pepsis
D) 0 slices of pizza and 7 Diet Pepsis
80) Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs
$2 each. The table above gives your utility from consuming these two goods. If your income is
$20, which of the following consumption combinations will you choose?
A) 5 slices of pizza and no Diet Pepsi
B) 4 slices of pizza and 2 Diet Pepsis
C) 3 slices of pizza and 4 Diet Pepsis
D) 2 slice of pizza and 6 Diet Pepsis
Quantity of
bottled water
Marginal
utility from
bottled water
Quantity of
hamburgers
Marginal
utility from
hamburgers
1
35
1
20
2
25
2
18
3
16
3
17
4
10
4
10
5
5
5
8
6
4
6
7
81) Given the data in the above table, income of $13, a price of $1 for a bottle of water and $2.00
for a hamburger, what is the marginal utility per dollar spent on the fifth hamburger?
A) 10 units of utility
B) 8 units of utility
C) 6 units of utility
D) 4 units of utility
82) Given the data in the above table, income of $13, a price of $1 for a bottle of water and $2
for a hamburger, what is the quantity of water and the quantity of hamburgers that will maximize
the consumer’s total utility?
A) 5 bottles of water and 4 hamburgers
B) 4 bottles of water and 4 hamburgers
C) 1 bottle of water and 6 hamburgers
D) 6 bottles of water and 6 hamburgers
83) Given the data in the above table, income of $13, a price of $1 for a bottle of water and $2
for a hamburger, what is the marginal utility per dollar spent on water and on hamburgers when
the consumer is in consumer equilibrium?
A) 20 units of utility per dollar spent
B) 10 units of utility per dollar spent
C) 5 units of utility per dollar spent
D) 1 unit of utility per dollar spent
84) Given the data in the above table, if income is $16, and the price is $1 for a bottle of water
and $2 for a hamburger, what is the quantity of water and the quantity of hamburgers that will
maximize the consumer’s total utility?
A) 5 bottles of water and 5 hamburgers
B) 4 bottles of water and 6 hamburgers
C) 6 bottles of water and 5 hamburgers
D) 6 bottles of water and 6 hamburgers
Quantity of
pens
Total utility
from pens
Quantity of
pencils
Total utility
from pencils
0
0
0
0
1
90
1
70
2
155
2
120
3
200
3
150
4
225
4
165
5
240
5
174
6
246
6
176
85) The table above gives the utility from pens and pencils. The marginal utility derived from the
third pen is
A) 200.
B) 155.
C) 445.
D) 45.
86) The table above gives the utility from pens and pencils. If pens and pencils both cost $.25
each and the consumer has an income of $2.25, which of the following combinations maximizes
the consumer’s utility?
A) 3 pens and 6 pencils
B) 4 pens and 5 pencils
C) 5 pens and 4 pencils
D) 6 pens and 3 pencils
87) The table above gives the utility from pens and pencils. If the consumer has an income of $4,
pens cost $1, and pencils cost $.20, which of the following combinations maximizes the
consumer’s utility?
A) 4 pens and 0 pencils
B) 3 pens and 5 pencils
C) 3 pens and 6 pencils
D) no combination shown
88) The table above gives the utility from pens and pencils. If the consumer has an income of $4,
pens cost $1, and pencils cost $.20, what is the consumer’s total utility when he or she maximizes
utility?
A) 374
B) 225
C) 405
D) 365
Hours spent
Total utility
from sailing
Total utility
from skiing
1
50
50
2
90
90
3
120
120
4
140
140
89) As shown in the above table, Sam enjoys sailing and skiing equally well. Which of the
following is TRUE?
A) Sam will not consume the same number of hours of sailing and skiing if the price per hour of
sailing is more than that of skiing.
B) If the prices per hour of sailing and skiing are the same, Sam will not spend the same number
of hours at each activity.
C) The marginal utility of the 3rd hour of either sailing or skiing is 120.
D) None of the above is true.
Quantity of
videos
Total utility
from videos
Quantity of
CDs
Total utility
from CDs
0
0
0
0
1
250
1
400
2
430
2
700
3
580
3
900
4
700
4
1000
5
800
5
1060
90) The above table shows Tammy’s total utility from videos and CDs. If Tammy has $70 to
spend on videos and CDs and if the price of a video is $10 and the price of a CD is $20, then
Tammy maximizes her utility by purchasing
A) 3 CDs and 1 video.
B) 1 CD and 5 videos.
C) 2 CDs and 3 videos.
D) none of the above
91) The above table shows Tammy’s total utility from videos and CDs. If Tammy has $70 to
spend on videos and CDs and if the price of a video is $10 and the price of a CD is $20, then the
maximum utility Tammy can attain is
A) 450.
B) 1280.
C) 1150.
D) 1200.
92) The above table shows Tammy’s total utility from videos and CDs. If Tammy has $110 to
spend on videos and CDs and if the price of a video is $10 and the price of a CD is $20, then
Tammy maximizes her utility by purchasing
A) 3 CDs and 5 videos.
B) 5 CDs and 1 video.
C) 4 CDs and 3 videos.
D) none of the above.
93) The above table shows Tammy’s total utility from videos and CDs. If Tammy has $110 to
spend on videos and CDs and if the price of a video is $10 and the price of a CD is $20, then the
maximum utility Tammy can attain is
A) 1700.
B) 300.
C) 1580.
D) 250.
Milkshakes Sodas
Quantity
Total utility
Quantity
Total utility
0
0
0
0
1
600
1
240
2
1000
2
360
3
1300
3
460
4
1540
4
520
5
1590
5
570
6
1636
6
590
7
1676
7
602
8
1708
8
610
9
1728
9
616
10
1738
10
620
94) The table above shows Tom’s total utility from milkshakes and sodas. What is the marginal
utility of Tom’s eighth milkshake?
A) 32 units
B) 20 units
C) 16 units
D) 10 units
95) The table above shows Tom’s total utility from milkshakes and sodas. What is the marginal
utility of the eighth soda?
A) 32 units
B) 20 units
C) 10 units
D) 8 units
96) The table above shows Tom’s total utility from milkshakes and sodas. A milkshake costs
$2.00. What is the marginal utility per dollar spent when the eighth milkshake is purchased?
A) 32 units per dollar
B) 20 units per dollar
C) 16 units per dollar
D) 10 units per dollar
97) The table above shows Tom’s total utility from milkshakes and sodas. A soda costs $1.00.
What is the marginal utility per dollar spent when the eighth soda is purchased?
A) 32 units per dollar
B) 20 units per dollar
C) 10 units per dollar
D) 8 units per dollar
98) The table above shows Tom’s total utility from milkshakes and sodas. A milkshake costs
$2.00. How much marginal utility per dollar would Tom get if he purchased the ninth
milkshake?
A) 1728 units per dollar
B) 20 units per dollar
C) 10 units per dollar
D) none of the above
99) The table above shows Tom’s total utility from milkshakes and sodas. Tom’s total budget for
milkshakes and sodas is $10.00 per week. Milkshakes cost $2.00 each and sodas cost $1.00 each.
What combination of milkshakes and sodas maximizes Tom’s utility?
A) 5 milkshakes and 0 sodas
B) 4 milkshakes and 2 sodas
C) 3 milkshakes and 4 sodas
D) 2 milkshakes and 6 sodas
100) The table above shows Tom’s total utility from milkshakes and sodas. Tom’s total budget
for milkshakes and sodas is $10.00 per week. Milkshakes cost $2.00 each and sodas cost $1.00
each. What quantity of milkshakes does Tom purchase at his consumer equilibrium?
A) one
B) two
C) three
D) four
101) The table above shows Tom’s total utility from milkshakes and sodas. Tom’s total budget
for milkshakes and sodas is $10.00 per week. Milkshakes cost $2.00 each and sodas cost $1.00
each. What quantity of sodas does Tom purchase at his consumer equilibrium?
A) one
B) two
C) three
D) four
102) The table above shows Tom’s total utility from milkshakes and sodas. Tom’s total budget
for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $1.00
each. What quantity of milkshakes does Tom purchase at his consumer equilibrium?
A) five
B) six
C) seven
D) eight
103) The table above shows Tom’s total utility from milkshakes and sodas. Tom’s total budget
for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $1.00
each. What quantity of sodas does Tom purchase at his consumer equilibrium?
A) five
B) six
C) seven
D) eight
104) The table above shows Tom’s total utility from milkshakes and sodas. Tom’s total budget
for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $1.00
each. What is Tom’s total utility at his consumer equilibrium?
A) 1900 units
B) 2155 units
C) 2266 units
D) 2278 units
105) The table above shows Tom’s total utility from milkshakes and sodas. Tom’s total budget
for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $.50
each. What quantity of milkshakes does Tom purchase at his consumer equilibrium?
A) five
B) six
C) seven
D) eight
106) The table above shows Tom’s total utility from milkshakes and sodas. Tom’s total budget
for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $.50
each. What quantity of sodas does Tom purchase at his consumer equilibrium?
A) five
B) six
C) seven
D) eight
Pizza CDs
Quantity
Total
utility
Quantity
Total
utility
1
95
1
170
2
180
2
320
3
255
3
450
4
320
4
560
5
375
5
650
107) Bobby spends $100 per month on pizza and CDs. His utility from these goods is shown in
the table above. The price of a pizza is $10 and the price of a CD is $20. Which of the following
combinations of the two goods maximizes Bobby’s utility?
A) 2 pizzas and 4 CDs
B) 6 pizzas and 2 CDs
C) 4 pizzas and 3 CDs
D) 8 pizzas and 1 CDs
108) Bobby spends $100 per month on pizza and CDs. His utility from these goods is shown in
the table above. The price of a pizza is $10 and the price of a CD is $20. If Bobby maximizes
utility from these goods, his total utility is ________ units.
A) 705
B) 750
C) 770
D) 880
109) Bobby spends $100 per month on pizza and CDs. His utility from these goods is shown in
the table above. The price of a pizza is $10 and the price of a CD is $20. Bobby currently buys 6
pizzas and 2 CDs. To maximize his utility, he should
A) buy more pizza and fewer CDs.
B) buy more CDs and fewer pizza.
C) buy more of both goods.
D) stay with the current combination of goods.
110) Bobby spends $100 per month on pizza and CDs. His utility from these goods is shown in
the table above. The price of a pizza is $10 and the price of a CD is $20. Bobby currently buys 2
pizzas and 6 CDs. To maximize his utility in the next period, he should
A) buy more pizza and fewer CDs.
B) buy more CDs and fewer pizza.
C) buy more of both goods.
D) stay with the current combination of goods.
Cookies Cake
Quantity
Marginal
utility
Quantity
Marginal
utility
1
32
1
40
2
28
2
32
3
24
3
24
4
20
4
16
5
16
5
8
6
12
6
0
111) The above table shows Homer’s marginal utility from consuming various quantities of
chocolate chip cookies and cake. The price of cookies is $2 per pound, the price of cake is $2 per
slice and Homer has $12 to spend on cookies and cake. Homer will consume ________ of
cookies and ________ of cake.
A) 1 pound; 5 slices
B) 2 pounds; 4 slices
C) 3 pounds; 3 slices
D) 5 pounds; 2 slices
112) The above table shows Homer’s marginal utility from consuming various quantities of
chocolate chip cookies and cake. The price of cookies is $2 per pound, the price of cake is $2 per
slice and Homer has $18 to spend on cookies and cake. Homer will consume ________ pounds
of cookies and ________ slices of cake.
A) 5; 4
B) 4; 5
C) 6; 3
D) None of the above answers is correct.
113) The above table shows Homer’s marginal utility from consuming various quantities of
chocolate chip cookies and cake. The price of cookies is $1 per pound, the price of cake is $2 per
slice and Homer has $9 to spend on cookies and cake. Homer will consume ________ pounds of
cookies and ________ slices of cake.
A) 5; 2
B) 2; 5
C) 3; 3
D) None of the above answers is correct.
Quantity
of
magazines
Quantity
of CDs
0
0
1
1
2
2
3
3
4
4
5
5
6
6
7
7
8
8
114) The table above gives Jane’s total utility from magazines and CDs. The price of a magazine
is $4 and the price of a CD is $10. What is the marginal utility per dollar from magazines when
the sixth magazine is purchased?
A) 36 units
B) 15 units
C) 9 units
D) 5 units
115) The table above gives Jane’s total utility from magazines and CDs. The price of a magazine
is $4 and the price of a CD is $10. What is the marginal utility per dollar from CDs when the
sixth CD is purchased?
A) 40 units
B) 30 units
C) 15 units
D) 5 units
116) The table above gives Jane’s total utility from magazines and CDs. The price of a magazine
is $4 and the price of a CD is $10. If Jane’s total budget for magazines and CDs is $70.00 per
week, what is her total utility at her utility maximizing consumer equilibrium?
A) 2480 units
B) 1870 units
C) 210 units
D) 30 units
117) The table above gives Jane’s total utility from magazines and CDs. The price of a magazine
is $4 and the price of a CD is $10. If Jane’s budget increases from $70 to $88, how many
magazines does Jane purchase at her consumer equilibrium?
A) five
B) six
C) seven
D) eight
118) The table above gives Jane’s total utility from magazines and CDs. The price of a magazine
is $4 and the price of a CD is $10 and Jane’s budget is $88. What is Jane’s marginal utility per
dollar spent on magazines at her consumer equilibrium?
A) 36 units
B) 15 units
C) 9 units
D) 5 units