Microeconomics- Unit 4 Consumer Behavior

What do economists assume about consumer behavior?

In economics, the level of satisfaction obtained from consuming a good or service is its _____.

True or false. The marginal utility provided from eating a second ice cream cone is generally less than the total utility derived from eating ice cream cones.

Denise gets 50 utils from consuming three cups of coffee. The first cup of coffee provides 25 utils and the third cup provides 10 utils. What is the marginal utility of the second cup of coffee?

"Value in exchange" versus "value in use" were Adam Smith's means of distinguishing between _____.

True or false. Each additional unit of good consumed will have greater utility than the prior unit.

Jacques has $15 left to spend, and is deciding between a $9 burger (provides 5 utils of satisfaction for Jacques), a $7.50 order of cheesy fries (provides 2 utils), a $6 bucket of popcorn (provides 4 utils), and a $3 cookie (provides 1 util). What will he buy?

Denise finds that she gets too sore to function well if her workout lasts more than 80 minutes. She gets the following utils per workout for her first four 20-minute routines: 12, 8, 5, 2. A reasonable number of utils to assign to her fifth 20-minute routine would be _____.

True or false. For items that aren't free, consumer surplus is less than the value of a good or service to the consumer.

When Denise passed her local newsstand today, the proprietor had newspapers on the counter for $2 each. Denise would happily pay $5. What is her consumer surplus.

When tariffs are imposed, the price points for consumers will _____.

True or false. In an indifference curve, the most appealing combination of two products for a given consumer occurs at every point in the curve.

A typical convex indifference curve demonstrates diminishing marginal rates of substitution. This means that the further one travels along either axis, the ______

A budget set can change with price and income changes. If prices fall, then _______.

True or false. A manufacturing process that releases dangerous elements into the surrounding area without compensation is a negative externality.

Concern over alligators from a nearby swamp getting into their warehouse has prompted a local business to install alligator-proof fences along the edge of the swamp abutting their community. What is this an example of?

Imposing fees and taxes on industries in order to move more of the cost of production onto the producer should _____.

True or false. Government regulation intended to limit the impacts of negative externalities will make products cheaper for end consumers.

What is an example of government policies intended to increase the impacts of positive externalities?

Enforcing property rights will have a side effect of ______.

True or false. A toll road is an example of something that is nonexcludable.

Which of the following is a public good rather than a private good?

A public good is ____.

True or false. Governments subsidize some public goods because these projects provide a public good that would be too expensive for private companies to provide given free-riding behavior.

Which of the following is a public good?

National defense is a public good and suffers from the free-rider problem. Therefore, it is best _____.