Deck 5: Consumer Choice

Question 1

When consuming a good or service, the level of satisfaction obtained is known as:

A) contentment.
B) utility.
C) preference.
D) desire.

Answer 1

B

Question 2

The extent to which Melody enjoyed the Zac Brown Band concert is known as:

A) contentment.
B) utility.
C) preference.
D) desire.

Answer 2

B

Question 3

Economists measure utility:

A) by the dollar sign.
B) in utils.
C) by quantity.
D) in satising.

Answer 3

B

Question 4

Economists derive inferences about utility based on:

A) consumer behavior.
B) supply and demand.
C) price.
D) surplus and shortage.

Question 5

The sum of each unit's marginal utility is ______ utility.

A) total
B) average
C) marginal
D) competitive

Question 6

The overall amount of satisfaction gained from consuming a given amount of a particular good is ____ utility.

A) total
B) average
C) marginal
D) competitive

Question 7

Maksim derives four utils in consuming his first cookie. His second cookie provides three utils, and from his third cookie, he derives one util. What is his total utility from consuming all four cookies?

A) 1
B) 2
C) 4
D) 8

Question 8

Amber derives six utils from her first wedding gift of towels. Her second gift set of towels gives her five utils. From her third gift set of towels, she derives two utils. Her marginal utility from the first set of towels to the third set of towels is _____.

A) 3
B) 3.5
C) 7
D) 7.5

Question 9

(Figure: Utility Table 0) Using the information in the table above, what is the missing value at point c?
$\begin{array}{|l|l|l|}\hline \mathbf{Q} & \mathrm{TU} & \mathrm{MU} \\\hline 0 & 0 & 0 \\\hline 1 & 12 & b \\\hline 2 & 20 & c \\\hline 3 & d & 2 \\\hline 4 & e & 1 \\\hline\end{array}$

A) 8
B) 11
C) 23
D) 28

Question 10

(Figure: Utility Table 0) Using the information in the table above, what is the missing value at point d?
$\begin{array}{|l|l|l|}\hline \mathbf{Q} & \mathrm{TU} & \mathrm{MU} \\\hline 0 & 0 & 0 \\\hline 1 & 12 & b \\\hline 2 & 20 & c \\\hline 3 & d & 2 \\\hline 4 & e & 1 \\\hline\end{array}$

A) 9
B) 22
C) 30
D) 32

Question 11

(Figure: Utility Table 0) Using the information in the table above, what is the total utility for three units?
$\begin{array}{|l|l|l|}\hline \mathbf{Q} & \mathrm{TU} & \mathrm{MU} \\\hline 0 & 0 & 0 \\\hline 1 & 12 & b \\\hline 2 & 20 & c \\\hline 3 & d & 2 \\\hline 4 & e & 1 \\\hline\end{array}$

A) 4
B) 22
C) 26
D) 30

Question 12

(Figure: Utility Table 0) Using the information in the table above, what is the total utility for the first unit?
$\begin{array}{|l|l|l|}\hline \mathbf{Q} & \mathrm{TU} & \mathrm{MU} \\\hline 0 & 0 & 0 \\\hline 1 & 12 & b \\\hline 2 & 20 & c \\\hline 3 & d & 2 \\\hline 4 & e & 1 \\\hline\end{array}$

A) 0
B) 12
C) 20
D) 22

Question 13

(Figure: Utility Table) Using the information in the table above, what is the marginal utility for the first unit?
$\begin{array}{|l|l|l|}\hline \mathbf{Q} & \mathrm{TU} & \mathrm{MU} \\\hline 0 & 0 & 0 \\\hline 1 & 12 & b \\\hline 2 & 20 & c \\\hline 3 & d & 2 \\\hline 4 & e & 1 \\\hline\end{array}$

A) 0
B) 12
C) 20
D) 30

Question 14

(Figure: Utility Table) Using the information in the table above, what is the missing value at point e?
$\begin{array}{|l|l|l|}\hline \mathbf{Q} & \mathrm{TU} & \mathrm{MU} \\\hline 0 & 0 & 0 \\\hline 1 & 12 & b \\\hline 2 & 20 & c \\\hline 3 & d & 2 \\\hline 4 & e & 1 \\\hline\end{array}$

A) 22
B) 24
C) 23
D) 54

Question 15

Alice really likes a pair of pants she saw in a store in the mall. She values the pants at 45 utils based on her willingness to pay $45 for the pants. The price of the pants is only $30. What is the utility that Alice gains by purchasing the pants?

A) 15 utils
B) 30 utils
C) 45 utils
D) 75 utils

Question 16

_____ occurs when increasing consumption of a good decreases marginal utility over a given period of time.

A) Utility
B) Total utility
C) Comparative utility
D) Diminishing marginal utility

Question 17

_____ is the overall amount of satisfaction that a consumer receives from consuming a given amount of a particular good.

A) Utility
B) Total utility
C) Comparative utility
D) Diminishing marginal utility

Question 18

(Figure: Total Utility and Marginal Utility) In the above figure, at what quantity is total utility maximized?

A) 1
B) 2
C) 3
D) 4

Question 19

(Figure: Total Utility and Marginal Utility) In the above figure, what is the total utility for one unit?

A) 10
B) 25
C) 40
D) 50

Question 20

(Figure: Total Utility and Marginal Utility) In the above figure, what is the total utility for two units?

A) 10
B) 25
C) 40
D) 50

Question 21

(Figure: Total Utility and Marginal Utility) In the above figure, what is the total utility for three units?

A) 10
B) 25
C) 40
D) 50

Question 22

(Figure: Total Utility and Marginal Utility) In the above figure, what is the total utility for four units?

A) 10
B) 25
C) 40
D) 50

Question 23

(Figure: Total Utility and Marginal Utility) In the above figure, what is the marginal utility of the 3^rd unit?

A) 15
B) 25
C) 35
D) 40

Question 24

(Figure: Total Utility and Marginal Utility) In the above figure, what is the marginal utility of the 4^th unit?

A) 10
B) 25
C) 50
D) 90

Question 25

(Figure: Total Utility and Marginal Utility) In the above figure, what is the marginal utility of the 1^st unit?

A) 10
B) 25
C) 50
D) 90

Question 26

(Figure: Total Utility and Marginal Utility) In the above figure, what is the marginal utility of the 2^nd unit?

A) 10
B) 15
C) 25
D) 35

Question 27

(Figure: Total Utility and Marginal Utility 2) In the above figure, what is the marginal utility of the first unit?

A) 40
B) 45
C) 50
D) 90

Question 28

(Figure: Total Utility and Marginal Utility 2) In the above figure, what is the marginal utility of the third unit?

A) 40
B) 45
C) 50
D) 90

Question 29

The diamond-water paradox can be explained by noting that the marginal utility of water is _____ and the total utility gained from water is:

A) low; low.
B) low; high.
C) high; low.
D) high; high.

Question 30

A budget _____ is all combinations of consumption afforded by a consumer within a given income and current prices.

A) utility
B) restraint
C) constraint
D) year

Question 31

Consumers with a fixed budget will make purchases based on:

A) the budget constraint.
B) their willingness to buy.
C) the amount of market supply.
D) the highest marginal utility per dollar.

Question 32

(Figure: Utility Table A) Price = $6
In the table, what is the marginal utility per dollar for two units?
$\begin{array}{|l|l|l|}\hline \text { Q }&\text { TU } & \text { MU } \\\hline 1 & 108 & ? \\\hline 2 & 180 & ? \\\hline 3 & 228 & 48 \\\hline 4 & 264 & 36 \\\hline 5 & 288 & 24 \\\hline\end{array}$

A) 12
B) 18
C) 110
D) 252

Question 33

(Figure: Utility Table A) Price = $3
In the table, what is the marginal utility per dollar for three units?
$\begin{array}{|l|l|l|}\hline \text { Q }&\text { TU } & \text { MU } \\\hline 1 & 108 & ? \\\hline 2 & 180 & ? \\\hline 3 & 228 & 48 \\\hline 4 & 264 & 36 \\\hline 5 & 288 & 24 \\\hline\end{array}$

A) 16
B) 24
C) 180
D) 276

Question 34

(Figure: Utility Table A) Price = $5
In the table, what is the marginal utility per dollar for five units?
$\begin{array}{|l|l|l|}\hline \text { Q }&\text { TU } & \text { MU } \\\hline 1 & 108 & ? \\\hline 2 & 180 & ? \\\hline 3 & 228 & 48 \\\hline 4 & 264 & 36 \\\hline 5 & 288 & 24 \\\hline\end{array}$

A) 4.8
B) 16.8
C) 21.6
D) 28.8

Question 35

(Figure: Utility Table A) Price = $5
In the table, what is the marginal utility per dollar for four units?
$\begin{array}{|l|l|l|}\hline \text { Q }&\text { TU } & \text { MU } \\\hline 1 & 108 & ? \\\hline 2 & 180 & ? \\\hline 3 & 228 & 48 \\\hline 4 & 264 & 36 \\\hline 5 & 288 & 24 \\\hline\end{array}$

A) 4.8
B) 7.2
C) 21.6
D) 36

Question 36

(Figure: Utility Table A) Price = $5
In the table, what is the marginal utility for five units?
$\begin{array}{|l|l|l|}\hline \text { Q }&\text { TU } & \text { MU } \\\hline 1 & 108 & ? \\\hline 2 & 180 & ? \\\hline 3 & 228 & 48 \\\hline 4 & 264 & 36 \\\hline 5 & 288 & 24 \\\hline\end{array}$

A) 12
B) 24
C) 288
D) 312

Question 37

(Figure: Utility Table A) Price = $5
In the table, what is the marginal utility of the second unit?
$\begin{array}{|l|l|l|}\hline \text { Q }&\text { TU } & \text { MU } \\\hline 1 & 108 & ? \\\hline 2 & 180 & ? \\\hline 3 & 228 & 48 \\\hline 4 & 264 & 36 \\\hline 5 & 288 & 24 \\\hline\end{array}$

A) 14.4
B) 48
C) 72
D) 82

Question 38

(Figure: Utility Table A) Price = $5
In the table, what is the marginal utility of the first unit?
$\begin{array}{|l|l|l|}\hline \text { Q }&\text { TU } & \text { MU } \\\hline 1 & 108 & ? \\\hline 2 & 180 & ? \\\hline 3 & 228 & 48 \\\hline 4 & 264 & 36 \\\hline 5 & 288 & 24 \\\hline\end{array}$

A) 21.6
B) 72
C) 108
D) 216

Question 39

The bundle of goods that maximizes a consumer's utility, subject to a budget constraint, is:

A) diminishing returns.
B) total utility.
C) marginal utility.
D) optimal consumption.

Question 40

The change in benefits from an additional activity is:

A) diminishing returns.
B) total utility.
C) marginal utility.
D) optimal consumption.

Question 41

(Figure: Utility Table I) In the table, assume that a consumer has a budget of $12, pizza costs $3 per slice, and soda costs $2 per can. Utility will be maximized by buying:
$\begin{array}{l}\quad\quad\quad\quad\quad\text { Pizza } \quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Soda }\\\begin{array}{|c|c|}\hline \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 \\\hline 1 & 72 \\\hline 2 & 108 \\\hline 3 & 126 \\\hline 4 & 137 \\\hline 5 & 144 \\\hline\end{array}\begin{array}{c|c|}\hline \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 \\\hline 1 & 48 \\\hline 2 & 84 \\\hline 3 & 108 \\\hline 4 & 120 \\\hline 5 & 127 \\\hline\end{array}\end{array}$

A) 4 slices of pizza and no cans of soda.
B) 3 slices of pizza and 2 cans of soda.
C) 2 slices of pizza and 3 cans of soda.
D) 1 slice of pizza and 5 cans of soda.

Question 42

(Figure: Utility Table I) In the table, assume that a consumer has a budget of $6, pizza costs $3 per slice, and soda costs $2 per can. Utility will be maximized by buying:
$\begin{array}{l}\quad\quad\quad\quad\quad\text { Pizza } \quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Soda }\\\begin{array}{|c|c|}\hline \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 \\\hline 1 & 72 \\\hline 2 & 108 \\\hline 3 & 126 \\\hline 4 & 137 \\\hline 5 & 144 \\\hline\end{array}\begin{array}{c|c|}\hline \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 \\\hline 1 & 48 \\\hline 2 & 84 \\\hline 3 & 108 \\\hline 4 & 120 \\\hline 5 & 127 \\\hline\end{array}\end{array}$

A) no slices of pizza and 3 cans of soda.
B) 1 slice of pizza and 1 can of soda.
C) 2 slices of pizza and no cans of soda.
D) 1 slice of pizza and 2 cans of soda.

Question 43

(Figure: Utility Table I) In the table, assume that a consumer has a budget of $17, pizza costs $3 per slice, and soda costs $2 per can. Utility will be maximized by buying:
$\begin{array}{l}\quad\quad\quad\quad\quad\text { Pizza } \quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Soda }\\\begin{array}{|c|c|}\hline \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 \\\hline 1 & 72 \\\hline 2 & 108 \\\hline 3 & 126 \\\hline 4 & 137 \\\hline 5 & 144 \\\hline\end{array}\begin{array}{c|c|}\hline \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 \\\hline 1 & 48 \\\hline 2 & 84 \\\hline 3 & 108 \\\hline 4 & 120 \\\hline 5 & 127 \\\hline\end{array}\end{array}$

A) 4 slices of pizza and 4 cans of soda.
B) 4 slices of pizza and 3 cans of soda.
C) 3 slices of pizza and 4 cans of soda.
D) 2 slices of pizza and 5 cans of soda.

Question 44

(Figure: Utility Table I) In the table, assume that a consumer has a budget of $8, pizza costs $2 per slice, and soda costs $1 per can. Utility will be maximized by buying:
$\begin{array}{l}\quad\quad\quad\quad\quad\text { Pizza } \quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Soda }\\\begin{array}{|c|c|}\hline \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 \\\hline 1 & 72 \\\hline 2 & 108 \\\hline 3 & 126 \\\hline 4 & 137 \\\hline 5 & 144 \\\hline\end{array}\begin{array}{c|c|}\hline \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 \\\hline 1 & 48 \\\hline 2 & 84 \\\hline 3 & 108 \\\hline 4 & 120 \\\hline 5 & 127 \\\hline\end{array}\end{array}$

A) 4 slices of pizza and 0 can of soda.
B) 3 slices of pizza and 2 cans of soda.
C) 2 slices of pizza and 4 cans of soda.
D) 1 slice of pizza and 6 cans of soda.

Question 45

(Figure: Utility Table I) In the table, assume that a consumer has a budget of $18, pizza costs $4 per slice, and soda costs $3 per can. Utility will be maximized by buying:
$\begin{array}{l}\quad\quad\quad\quad\quad\text { Pizza } \quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Soda }\\\begin{array}{|c|c|}\hline \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 \\\hline 1 & 72 \\\hline 2 & 108 \\\hline 3 & 126 \\\hline 4 & 137 \\\hline 5 & 144 \\\hline\end{array}\begin{array}{c|c|}\hline \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 \\\hline 1 & 48 \\\hline 2 & 84 \\\hline 3 & 108 \\\hline 4 & 120 \\\hline 5 & 127 \\\hline\end{array}\end{array}$

A) 4 slices of pizza and 1 can of soda.
B) 3 slices of pizza and 2 cans of soda.
C) 2 slices of pizza and 3 cans of soda.
D) 1 slice of pizza and 4 cans of soda.

Question 46

(Figure: Utility Table Alpha) In the table, assume that a consumer has a budget of $18, apple juice costs $2 per bottle, and scones cost $3 each. Utility will be maximized by buying:
$\quad\quad\quad\quad\text { Apple Juice }$ $\quad\quad\quad\quad\quad\quad\quad\text { Scones }$
$\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 25 & 1 & 31 \\\hline 2 & 43 & 2 & 60 \\\hline 3 & 56 & 3 & 83 \\\hline 4 & 66 & 4 & 105 \\\hline 5 & 74 & 5 & 116 \\\hline\end{array}$

A) 5 bottles of apple juice and 3 scones.
B) 4 bottles of apple juice and 3 scones.
C) 3 bottles of apple juice and 4 scones.
D) 2 bottles of apple juice and 5 scones.

Question 47

(Figure: Utility Table Alpha) In the table, assume that a consumer has a budget of $14, apple juice costs $2 per bottle, and scones cost $4 each. Utility will be maximized by buying:
$\quad\quad\quad\quad\text { Apple Juice }$ $\quad\quad\quad\quad\quad\quad\quad\text { Scones }$
$\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 25 & 1 & 31 \\\hline 2 & 43 & 2 & 60 \\\hline 3 & 56 & 3 & 83 \\\hline 4 & 66 & 4 & 105 \\\hline 5 & 74 & 5 & 116 \\\hline\end{array}$

A) 5 bottles of apple juice and 1 scone.
B) 3 bottles of apple juice and 2 scones.
C) 1 bottle of apple juice and 3 scones.
D) no bottles of apple juice and 4 scones.

Question 48

(Figure: Utility Table Alpha) In the table, assume that a consumer has a budget of $18, apple juice costs $3 per bottle, and scones cost $4 each. Utility will be maximized by buying:
$\quad\quad\quad\quad\text { Apple Juice }$ $\quad\quad\quad\quad\quad\quad\quad\text { Scones }$
$\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 25 & 1 & 31 \\\hline 2 & 43 & 2 & 60 \\\hline 3 & 56 & 3 & 83 \\\hline 4 & 66 & 4 & 105 \\\hline 5 & 74 & 5 & 116 \\\hline\end{array}$

A) 6 bottles of apple juice and no scones.
B) 4 bottles of apple juice and 1 scone.
C) 3 bottles of apple juice and 2 scones.
D) 2 bottles of apple juice and 3 scones.

Question 49

(Figure: Utility Table Alpha) In the table, assume that a consumer has a budget of $22, apple juice costs $3 per bottle, and scones cost $4 each. Utility will be maximized by buying:
$\quad\quad\quad\quad\text { Apple Juice }$ $\quad\quad\quad\quad\quad\quad\quad\text { Scones }$
$\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 25 & 1 & 31 \\\hline 2 & 43 & 2 & 60 \\\hline 3 & 56 & 3 & 83 \\\hline 4 & 66 & 4 & 105 \\\hline 5 & 74 & 5 & 116 \\\hline\end{array}$

A) 5 bottles of apple juice and 1 scone.
B) 4 bottles of apple juice and 3 scones.
C) 2 bottles of apple juice and 4 scones.
D) 1 bottle of apple juice and 5 scones.

Question 50

(Figure: Utility Table Alpha) In the table, assume that a consumer has a budget of $7, apple juice costs $3 per bottle, and scones cost $2 each. Utility will be maximized by buying:
$\quad\quad\quad\quad\text { Apple Juice }$ $\quad\quad\quad\quad\quad\quad\quad\text { Scones }$
$\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 25 & 1 & 31 \\\hline 2 & 43 & 2 & 60 \\\hline 3 & 56 & 3 & 83 \\\hline 4 & 66 & 4 & 105 \\\hline 5 & 74 & 5 & 116 \\\hline\end{array}$

A) 2 bottles of apple juice and 0 scones.
B) 2 bottles of apple juice and 1 scone.
C) 1 bottles of apple juice and 2 scones.
D) 0 bottles of apple juice and 3 scones.

Question 51

The change in quantity demanded of a good when price changes alter purchasing power is:

A) the substitution effect.
B) demand analysis.
C) utility analysis.
D) the income effect.

Question 52

When the price of a good rises, consumer's purchasing power is:

A) unaffected.
B) increased.
C) decreased.
D) maximized.

Question 53

In general, when the price of a normal good rises, consumers will purchase _____ of the good.

A) more
B) less
C) none
D) the same amount

Question 54

The _____ effect occurs when price changes and therefore leads to a change in quantity demanded and when consumers switch from relatively high-priced goods to relatively low-priced goods.

A) income
B) utility
C) substitution
D) optimization

Question 55

When the price of oranges rose, Melissa purchased apples instead. This is an example of the _____ effect.

A) income
B) utility
C) substitution
D) optimization

Question 56

When the price of DVDs rose, Ethan subscribed to an online video streaming service. This is an example of the _____ effect.

A) income
B) utility
C) substitution
D) optimization

Question 57

Amber enjoys a cup of coffee in the morning. When the price of her favorite brand increases, Amber switches to a cheaper brand. This is an example of the _____ effect.

A) income
B) utility
C) substitution
D) optimization

Question 58

When the price of ice cream rises, Juan is unable to afford as much ice cream as he used to buy. This is an example of the _____ effect.

A) income
B) utility
C) substitution
D) optimization

Question 59

Maneesh decides to move to a new apartment that is smaller because his rent recently doubled. This is an example of the _____ effect.

A) income
B) utility
C) substitution
D) optimization

Question 60

The price of cars has recently fallen. As a result, Maria decides to buy a nicer car because she can afford the payments. This is an example of the _____ effect.

A) utility
B) substitution
C) income
D) optimization

Question 61

In general, the substitution effect is larger than the offsetting income effect for ______ good.

A) an inferior
B) a substitute
C) a normal
D) a Giffen

Question 62

In general, the income effect is smaller than the offsetting substitution effect for _____ good.

A) an inferior
B) a substitute
C) a normal
D) a Giffen

Question 63

In general, the income effect is positively related to price changes for ______ goods.

A) inferior
B) substitute
C) normal
D) Giffen

Question 64

In general, purchasing power increases when the price of which good falls?

A) inferior
B) all
C) normal
D) Giffen

Question 65

When the income effect and the substitution effect move in the same direction, what is the result on the good whose price has fallen?

A) Demand increases.
B) Quantity demanded increases.
C) Demand falls.
D) Quantity demanded falls.

Question 66

Goods for which the quantity demanded increases as price increases are _____ goods.

A) inferior
B) substitute
C) normal
D) Giffen

Question 67

A graphical representation of the limit of all combinations of goods and services that a consumer can afford given her income and prices of the goods she wishes to buy is:

A) a demand curve.
B) a supply curve.
C) an optimization constraint line.
D) a budget constraint line.

Question 68

When the price of video games decreases, Elaina's budget constraint line:

A) rotates inward.
B) rotates outward.
C) remains unchanged.
D) divides in half.

Question 69

All combinations of two goods that will use up a consumer's budget can be illustrated by _____.

A) an indifference curve
B) a supply curve
C) a total utility curve
D) a budget constraint line

Question 70

Due to a budget constraint, Ethan is unable to purchase as many video games and movies as he would like. Therefore, Ethan's best option is to purchase:

A) only movies in the short run.
B) only video games in the short run.
C) nothing until his next paycheck.
D) the combination that will give him the most utility.

Question 71

(Figure: Budget Constraint Line) In the above figure, which combination of video games and movies can Maurice purchase?

A) 5 video games and 4 movies
B) 4 video games and 5 movies
C) 4 video games and 6 movies
D) 4 video games and 4 movies

Question 72

(Figure: Budget Constraint Line 2) In the above figure, if Jamal's budget decreases, which combination of video games and movies will he be unable to purchase?

A) 2 video games and 4 movies
B) 3 video games and 2 movies
C) 3 video games and 1 movie
D) 4 video games and 2 movies

Question 73

(Figure: Budget Constraint Line 3) In the above figure, if the price of video games increases, which combination of video games and movies will Erik be unable to purchase?

A) 1 video games and 6 movies
B) 2 video games and 5 movies
C) 3 video games and 4 movies
D) 4 video games and 3 movies

Question 74

The budget constraint line shows the maximum allowable combination of goods that are:

A) inventoried.
B) produced.
C) sold.
D) purchased.

Question 75

The budget constraint line differs from the production possibilities curve in that it shows the maximum allowable combination of goods that are:

A) inventoried.
B) produced.
C) sold.
D) affordable.

Question 76

Consumption options inside the budget constraint are:

A) unattainable.
B) attainable and efficient.
C) attainable and inefficient.
D) optimal.

Question 77

Kay has a budget of $20 for purchasing lunch and for purchasing bus tickets. Kay will most likely choose some combination of lunches and bus tickets. If Kay is like most people, she will choose options that:

A) are outside the budget constraint line.
B) maximize her utility.
C) are only on the budget constraint line.
D) are only inside the budget constraint line.

Question 78

Suzanne has a budget of $20 for purchasing lunch and for purchasing bus tickets. Suzanne will most likely choose some combination of lunches and bus tickets. She probably will not choose an option outside the budget constraint line because she:

A) is limited to the purchase of lunches only.
B) is limited to bus tickets only.
C) prefers to bring lunch from home.
D) does not have enough money for this option.

Question 79

The alternative combination of two goods that give consumers equal levels of satisfaction is illustrated by:

A) a budget constraint line.
B) an indifference curve.
C) a utility constraint
D) a demand curve.

Question 80

The _____ shows all the alternative combinations of products that give the consumer the same level of satisfaction.

A) budget constraint line
B) demand curve
C) utility constraint
D) indifference curve