Microeconomics Quiz chapter 20

law of diminishing marginal utility says that

Don receives 100 utils from consuming two oranges. The utility he derives from consuming the second orange equals 30 utils. Which of the following conclusions is derived from the law of diminishing marginal utility?

To resolve the diamond-water paradox, it is important to note that under most circumstances,

The diamond water paradox is the observation that

If income rises, the budget constraint a . does not move . b. moves farther down the vertical axis. . moves inward toward the origin. d. moves outward away from the origin .

Suppose you are eating slices of pizza and after consuming the first slice you receive 14 utils of total utility, after the second you receive 22 utils of total utility, and after the third 25 utils of total utility. Then

In the Texas A&M study of "buying" behavior of two white rats, as the "relative price" of one beverage was raised,

Refer to Exhibit 21-1. The marginal utility of the third plum is (Chart)

Refer to Exhibit 21-8. If the price of good X falls, the budget constraint moves from budget constraint

Marginal utility is defined as the

A consumers is in equilibrium if he or she derives the same

Suppose you could quantify the amount of satisfaction you receive from consuming ice cream in money terms. You might say, "I expect to get $3 worth of satisfaction from this ice cream cone." According to traditional economic theory, if the price of this ice cream cone were $3.25, would you buy one?

suppose you are eating buffalo wings at a local happy hour. the total utils from doing so after the fourth,fifth, and sixth and seventh wings are 80, 116, 136, 146 the marginal utitly of the 7th wing is uitils

In order for an individual to achieve consumer equilibrium through the consumption of two goods, A and B, that individual must fulfill the condition

An Indifference curve shows

Refer to Exhibit 21 - 2 . Total utility for all five oranges

We take one dollar from a pauper and give it to a millionaire. Assuming a diminishing marginal utility of money

A person is a consumer equilibrium, and the price rises from one of the good she purchases. If she wants to restore her self to consumer equilibrium, she will( most likely)

Which of the following statements is true?

Given two goods, X and Y and their prices, Px and y a consumer will maximize total utility by allocating expenditures such that

Suppose that the MUP ratio for good X is the same as for good Y: 12 per dollar. If the price of good X then rises to $2 from $1, until the of that good falls toutils.

Refer to Exhibit 21 - 1 . The marginal utility of the fourth plum is

A util is an artificial construct used as a means of measuring the

Refer to Exhibit 21-6.111 1 3 are indifference curves and line ab is the relevant budget constraintIf the consumer is initially at point R he should

Consumer equilibrium exist when

Economist usually assume that money has marginal utility

We would expect the total utility of water to be high but its marginal utility to be low. Why?

Consider two options a you receive a critique payment of $100; be a coin is tossed in the head comes up, you win nothing; if tails comes up you win $200. The expected payoff for option B is

Ari is currently consuming 10 hot dogs and 8 hamburgers per week. The last hot dog she consumed yielded 20 utils while the last hamburger she ate gave her 25 utils. If hot dogs cost $2 and hamburgers cost $2.50, is Ari consuming the correct quantities of these two goods to be in consumer equilibrium?

If the MU/P ratio for good X is less than the MU/P ratio for good Y, this means that

Given two goodsX and Y, their prices, P and y, a consumer is in equilibrium when the last dollar spent on X yields

Given the choice between a sure thing option in the gamble option with the same expect to pay off, a person would choose gamble