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Exam 7: Consumer Behavior

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Question 21

Multiple Choice

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This table shows the different combinations of goods that Jack can consume,given that his income to spend on these two items is $10. Considering the information in the table shown,the price of ice cream is:

A) $2 per cone.
B) $1 per cone.
C) decreases as Jack increases the amount consumed.
D) $5 per cone.

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Question 22

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If Bob has one piece of gum in his mouth,he gains a utility of 12.If he adds a second piece to the first,it yields a marginal utility of 6;adding a third will bring marginal utility of 1.Adding a fourth piece will make Bob choke,yielding a marginal utility of -4.We can say:

A) Bob's total utility from chewing four pieces of gum would be 23.
B) Bob's total utility will decrease if he chews the fourth piece of gum.
C) Bob's total utility will be maximized if he eats two pieces.
D) Bob's total utility decreases after the first piece of gum.

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Question 23

Multiple Choice

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Bart is seen standing in front of the cooler that contains containers of iced tea and lemonade.Moments later,we see Bart drinking iced tea,and we conclude Bart is getting more utility from that drink than lemonade.We drew that conclusion based on what economic concept?

This graph shows three different budget constraints: A,B,andC. If Don has budget constraint C in the graph shown,what is the trade-off he faces in terms of the two goods?

Dave and Buster play two games of tennis,then decide to go have lunch.This type of decision making can be explained using the concept of:

This table shows the different combinations of goods that Jack can consume,given that his income to spend on these two items is $10. Considering the information in the table shown,if Jack decides to consume bundle D,we can conclude that Jack:

This table shows the different combinations of goods that Jack can consume,given that his income to spend on these two items is $10. Considering the information in the table shown,Jack's total utility from consuming bundle D would be:

Alison is deciding how to spend the next hour.We ask her to rate the utility she would get from an hour of each activity.She would get utility of 4 from an hour of reading,utility of 2 from an hour of playing video games,and utility of 6 from shopping.Based on this information,economists could predict that Alison will:

A utility function is:

This graph shows three different budget constraints: A,B,andC. If Joe has budget constraint C in the graph shown,what is the relative price of three gallons of milk?

In general,the income effect of an increase in the price of a normal good:

The marginal utility gained from the consumption of successive units of a normal good:

After watching a movie,Alan chooses not to watch a second and goes for a walk instead.Economists could explain his choices using the concept of:

Elijah has just eaten his second popsicle.Using the concept of marginal utility,we can say:

When a person's income increases:

Linus has just watched two hours of TV.We can say:

Sam has $200 a month to spend on either tanning sessions or rounds of golf.Tanning sessions are $20 each,and a round of golf is $40.Sam currently consumes six tanning sessions and two rounds of golf.Both tanning and golf are normal goods.If the price of a round of golf drops to $20,the income and substitution effects will cause Sam's consumption of tanning sessions:

This graph shows three different budget constraints: A,B,andC. If Bert has budget constraint A in the graph shown,what is his opportunity cost of three gallons of milk?

You decide to buy your friend lunch after she helped you study for your exam.This is an example of the economic concept of:

Howard has just smoked a cigarette.If he chooses to smoke a second one: