Deck 6: Household Behavior and Consumer Choice

Question 1

Refer to the information provided in Figure 6.1 below to answer the questions that follow. Figure 6.1
Refer to Figure 6.1. Assume Tom's budget constraint is AC. Given his current monthly income, he CANNOT purchase the bundle of goods at point

A) A.
B) B.
C) E.
D) D.

Answer 1

D

Question 2

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Figure 6.2
Refer to Figure 6.2. Assume Mr. Lingle's budget constraint is AC. He will not spend his entire income at point

A) A.
B) B.
C) E.
D) D.

Answer 2

C

Question 3

Refer to the information provided in Figure 6.1 below to answer the questions that follow. Figure 6.1
Refer to Figure 6.1. Along budget constraint AC, the opportunity cost of one hot dog

A) is 1/4 of a hamburger.
B) is 1/2 of a hamburger.
C) is 2 hamburgers.
D) changes as you move down along the budget constraint.

Answer 3

B

Question 4

Ted has $600 a week to spend on clothing (c) and food (f). The price of clothing is $30 and the price of food is $5. What is the equation for Ted's budget constraint?

A) $30 × Clothing + $5 × Food < $600
B) $30 × Clothing + $5 × Food ≤ $600
C) $30 × Clothing + $5 × Food > $600
D) $30 × Clothing + $5 × Food = $600

Question 5

Refer to the information provided in Figure 6.1 below to answer the questions that follow. Figure 6.1
Refer to Figure 6.1. AC represents Tom's budget constraint. Point D then represents a point that is

A) an available option, as Tom is just spending all of his income.
B) available, but at which he does not spend all his income.
C) not available because it represents a combination of hamburgers and hot dogs that he cannot purchase with his income.
D) in his opportunity set but not on his budget constraint.

Question 6

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Figure 6.2
Refer to Figure 6.2. Assume Mr. Lingle's budget is AC. Given his current monthly income, he CANNOT purchase the quantities of the two goods at point

A) A.
B) B.
C) E.
D) D.

Question 7

Refer to the information provided in Figure 6.1 below to answer the questions that follow. Figure 6.1
Refer to Figure 6.1. Along budget constraint AC, the opportunity cost of one hamburger

A) is 1/4 of a hot dog.
B) is 1/2 of a hot dog.
C) is 2 hot dogs.
D) changes as you move down along the budget constraint.

Question 8

Jane has $500 a week to spend on clothing and food. The price of clothing is $25 and the price of food is $10. Jane spends her entire income when she purchases ________ units of clothing and ________ units of food.

A) 10; 10
B) 25; 5
C) 12; 20
D) 16; 8

Question 9

Refer to the information provided in Figure 6.1 below to answer the questions that follow. Figure 6.1
Refer to Figure 6.1. Assume Tom's budget constraint is AC. He does NOT spend his entire income at point

A) A.
B) B.
C) E.
D) D.

Question 10

Refer to the information provided in Figure 6.1 below to answer the questions that follow. Figure 6.1
Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hot dog is $2.00. Tom's monthly income is

A) $40.
B) $60.
C) $80.
D) $100.

Question 11

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Figure 6.2
Refer to Figure 6.2. Assume Mr. Lingle is on budget constraint AC. If the price of a gardenburger is $6, Mr. Lingle's monthly income is

A) $24.
B) $60.
C) $200.
D) $240.

Question 12

Jim has $600 a week to spend on clothing and food. The price of clothing is $30 and the price of food is $5. The clothing and food pairs in Jim's choice set include ________ units of clothing and ________ units of food.

A) 20; 50
B) 15; 70
C) 10; 60
D) 0; 200

Question 13

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Figure 6.2
Refer to Figure 6.2. Assume Mr. Lingle is on budget constraint AC. If the price of a beer is $5, Mr. Lingle's monthly income is

A) $40.
B) $80.
C) $100.
D) $200.

Question 14

Refer to the information provided in Figure 6.1 below to answer the questions that follow. Figure 6.1
Refer to Figure 6.1. The slope of budget constraint AC is

A) -5.0.
B) -2.0.
C) -0.5.
D) indeterminate from this information because prices are not given.

Question 15

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Figure 6.2
Refer to Figure 6.2. The slope of budget constraint AC is

A) -1/2.
B) -1.
C) -2.
D) indeterminate from this information because prices are not given.

Question 16

Jane has $500 a week to spend on clothing (c) and food (f). The price of clothing is $25 and the price of food is $10. What is the equation for Jane's budget constraint?

A) ($25 × Clothing) × ($10 × Food) < $500
B) $25 × Clothing + $10 × Food ≥ $500
C) ($25 × Clothing) / ($10 × Food) = $500
D) $25 × Clothing + $10 × Food = $500

Question 17

Refer to the information provided in Figure 6.1 below to answer the questions that follow. Figure 6.1
Refer to Figure 6.1. Assume Tom's budget constraint is AC. At which point does Tom consume only hot dogs?

A) A.
B) B.
C) E.
D) D.

Question 18

Refer to the information provided in Figure 6.1 below to answer the questions that follow. Figure 6.1
Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hamburger is $4.00. Tom's monthly income is

A) $20.
B) $60.
C) $80.
D) $100.

Question 19

Refer to the information provided in Figure 6.1 below to answer the questions that follow. Figure 6.1
Refer to Figure 6.1. Tom's budget constraint is AC. His choice set includes all points

A) to the right of budget constraint AC.
B) bounded by the area OAC.
C) along budget constraint AC.
D) along the vertical and horizontal axes.

Question 20

Jane has $500 a week to spend on clothing and food. The price of clothing is $25 and the price of food is $10. The clothing and food pairs in Jane's choice set include ________ units of clothing and ________ units of food.

A) 50; 50
B) 20; 50
C) 15; 25
D) 8; 30

Question 21

Refer to the information provided in Figure 6.4 below to answer the questions that follow. Figure 6.4
Refer to Figure 6.4. Bill's budget constraint is AC. His budget constraint would shift to AB if the price of

A) black beans increased.
B) black beans decreased.
C) bell peppers increased.
D) bell peppers decreased.

Question 22

Refer to the information provided in Figure 6.3 below to answer the questions that follow. Figure 6.3
Refer to Figure 6.3. Molly's budget constraint is AC. It would swivel to AD if the price of

A) DVDs increased.
B) DVDs decreased.
C) CDs increased.
D) CDs decreased.

Question 23

Refer to the information provided in Figure 6.3 below to answer the questions that follow. Figure 6.3
Refer to Figure 6.3. Molly's budget constraint is AC. Molly can purchase

A) none of the points along AD.
B) all of the points along AB.
C) all of the points along BD.
D) none of the points along AC.

Question 24

If a household's income falls by 10%, its budget constraint will

A) shift out parallel to the old one.
B) pivot at the Y-intercept.
C) shift in parallel to the old one.
D) be unaffected.

Question 25

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Figure 6.2
Refer to Figure 6.2. Mr. Lingle's budget constraint is AC. His choice set is all points

A) in the area bounded by OAC.
B) to the right of budget constraint AC.
C) along budget constraint AC.
D) along the vertical and horizontal axes.

Question 26

Refer to the information provided in Figure 6.4 below to answer the questions that follow. Figure 6.4
Refer to Figure 6.4. Bill's budget constraint is AC. If the black bean price decreases, Bill's budget constraint will be

A) AO.
B) AB.
C) AC.
D) AD.

Question 27

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Figure 6.2
Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of one gardenburger is

A) 1/4 of a beer.
B) 1 beer.
C) 2 beers.
D) changing as Mr. Lingle moves down his budget constraint.

Question 28

Refer to the information provided in Figure 6.5 below to answer the questions that follow. Figure 6.5
Refer to Figure 6.5. Molly's budget constraint is BD. If the price of CDs decreases, her new budget constraint becomes

A) AD.
B) AO.
C) CD.
D) EF.

Question 29

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Figure 6.2
Refer to Figure 6.2. Mr. Lingle's budget constraint is AC. Point C is

A) an available option and Mr. Lingle exactly spends all of his income.
B) an available option and Mr. Lingle does not spend all of his income.
C) not in Mr. Lingle's opportunity set but is on his budget constraint.
D) not available because it represents a combination of gardenburgers and beer that Mr. Lingle cannot purchase with his current income.

Question 30

Refer to the information provided in Figure 6.5 below to answer the questions that follow. Figure 6.5
Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases and the price of CDs increases, her new budget constraint could be

A) CD.
B) BD.
C) AD.
D) Both B or C are correct.

Question 31

Refer to the information provided in Figure 6.5 below to answer the questions that follow. Figure 6.5
Refer to Figure 6.5. Molly's budget constraint is EF. If her income decreases while the price of the goods are unchanged, her new budget constraint could be

A) AD.
B) BD.
C) CD.
D) not shown on this graph.

Question 32

If a household's income doubles, its budget constraint will

A) shift out parallel to the old one.
B) pivot at the Y-intercept.
C) shift in parallel to the old one.
D) be unaffected.

Question 33

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Figure 6.2
Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of one beer is

A) 1/4 of a gardenburger.
B) 1 gardenburger.
C) 2 gardenburgers.
D) changing as Mr. Lingle moves down his budget constraint.

Question 34

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Figure 6.2
Refer to Figure 6.2. Assume Mr. Lingle's budget is AC. At which point does Mr. Lingle spend exactly his income?

A) A.
B) D.
C) E.
D) The answer cannot be determined with the given information.

Question 35

Refer to the information provided in Figure 6.5 below to answer the questions that follow. Figure 6.5
Refer to Figure 6.5. Molly's budget constraint is CD. If her income increases, her new budget constraint is

A) AD.
B) BD.
C) EF.
D) It is not shown on this graph.

Question 36

Refer to the information provided in Figure 6.3 below to answer the questions that follow. Figure 6.3
Refer to Figure 6.3. Molly's budget constraint is AC. It would swivel to AB if the price of

A) DVDs increased.
B) DVDs decreased.
C) CDs increased.
D) CDs decreased.

Question 37

Refer to the information provided in Figure 6.4 below to answer the questions that follow. Figure 6.4
Refer to Figure 6.4. Bill's budget constraint is AC. If the bell peppers price increases, Bill's budget constraint will be

A) AB.
B) AC.
C) AD.
D) The budget constraint is not depicted on the diagram.

Question 38

Refer to the information provided in Figure 6.2 below to answer the questions that follow. Figure 6.2
Refer to Figure 6.2. Mr. Lingle's budget constraint is AC. Point E is

A) an available option and Mr. Lingle exactly spends all of his income.
B) an available option and Mr. Lingle does not spend all of his income.
C) not in Mr. Lingle's opportunity set but is on his budget constraint.
D) not available because it represents a combination of gardenburgers and beer that Mr. Lingle cannot purchase with his current income.

Question 39

Refer to the information provided in Figure 6.5 below to answer the questions that follow. Figure 6.5
Refer to Figure 6.5. Molly's budget constraint is BD. If the price of CDs increases, her new budget constraint becomes

A) AD.
B) BD.
C) CD.
D) EF.

Question 40

Refer to the information provided in Figure 6.5 below to answer the questions that follow. Figure 6.5
Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B the consumer is buying ________ DVDs and ________ CDs.

A) 0; 20
B) 20; 0
C) 20; 15
D) 40; 30

Question 41

Refer to the information provided in Figure 6.6 below to answer the questions that follow. Figure 6.6
Refer to Figure 6.6. Bill's budget constraint was originally AD. If his new budget constraint is EF, then his income

A) increased.
B) decreased.
C) increased and the price of black beans price increased.
D) increased and the price of bell peppers decreased.

Question 42

Homogeneous products are distinguishable from each other.

Question 43

Refer to the information provided in Figure 6.6 below to answer the questions that follow. Figure 6.6
Refer to Figure 6.6. Bill's budget constraint is BD. Bill's income is $800, the price of a bell pepper is $1, and the price of a bag of black beans is $1. At point B Bill is buying ________ bell peppers and ________ bags of black beans.

A) 0; 800
B) 800; 0
C) 400; 400
D) 600; 200

Question 44

Refer to the information provided in Figure 6.7 below to answer the questions that follow. Figure 6.7
Refer to Figure 6.7. Along budget constraint AB, the price of good X is $10 and the price of good Y is $12. If the price of X increases to $15, the budget constraint will

A) pivot in at point B.
B) pivot out at point A.
C) shift in parallel to AB.
D) pivot in at point A.

Question 45

When the price of a good increases, the budget constraint does not change.

Question 46

Michael can buy either pizzas or submarine sandwiches. If the prices of pizzas and submarine sandwiches double and so does Michael's money income, we can conclude that Michael's budget constraint will

A) shift in but remain parallel to the old one.
B) shift out but remain parallel to the old one.
C) swivel in so that the slope of the budget constraint is doubled.
D) remain unchanged.

Question 47

Assuming a perfectly competitive market implies that households have perfect knowledge of qualities and prices of everything available in the market.

Question 48

A car's real cost is its opportunity cost. Opportunity cost is determined by

A) the price of the car.
B) relative prices.
C) wealth.
D) the prices of the goods that are compliments to a car.

Question 49

Refer to the information provided in Figure 6.6 below to answer the questions that follow. Figure 6.6
Refer to Figure 6.6. Bill's budget constraint was originally CD. If his new budget constraint is EF, then his income

A) increased.
B) decreased.
C) did not change but the price of black beans decreased.
D) did not change but the price of bell peppers decreased.

Question 50

Income increases cause an increase in a household's choice set.

Question 51

Michael can buy either pizzas or submarine sandwiches. If the prices of pizzas and submarine sandwiches double and Michael's money income triples, we can conclude that Michael's budget constraint will

A) shift in but remain parallel to the old one.
B) shift out but remain parallel to the old one.
C) swivel in so that the slope of the budget constraint is doubled.
D) remain unchanged.

Question 52

Refer to the information provided in Figure 6.8 below to answer the questions that follow. Figure 6.8
Refer to Figure 6.8. The marginal utility of the first movie rental is

A) 0.
B) 15.
C) 25.
D) 40.

Question 53

Price decreases will ________ a household's choice set.

A) increase
B) decrease
C) not change
D) sometimes increase and other times decrease

Question 54

Refer to the information provided in Figure 6.8 below to answer the questions that follow. Figure 6.8
Refer to Figure 6.8. The marginal utility of the fourth movie rental is

A) 0.
B) 3.
C) 25.
D) 28.

Question 55

Price increases cause a decrease in a household's choice set.

Question 56

When the price of a good decreases, the budget constraint shifts out parallel to the original budget constraint.

Question 57

Marginal utility is the ________ satisfaction gained by consuming ________ of a good.

A) total; all units
B) total; one more unit
C) additional; all units
D) additional; one more unit

Question 58

Kathy eats five slices of pizza on a Saturday night but admits each slice of pizza doesn't taste as good as the previous one. This suggests that for Kathy the

A) marginal utility of a slice of pizza is positive but decreasing.
B) marginal utility of a slice of pizza is negative.
C) total utility of slices of pizza is declining.
D) total utility of slices of pizza is increasing by larger and larger increments.

Question 59

Refer to the information provided in Figure 6.6 below to answer the questions that follow. Figure 6.6
Refer to Figure 6.6. Bill's budget constraint is BD. If the price of bell peppers increases, Bill's new budget constraint is

A) AD.
B) AO.
C) CD.
D) EF.

Question 60

Refer to the information provided in Figure 6.5 below to answer the questions that follow. Figure 6.5
Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $375, the price of a DVD is $15 and the price of a CD is $25. At point D the consumer is buying ________ DVDs and ________ CDs.

A) 0; 15
B) 25; 0
C) 25; 15
D) 50; 30

Question 61

Refer to the information provided in Figure 6.9 below to answer the questions that follow. Figure 6.9
Refer to Figure 6.9. The marginal utility of the fourth video game rental is

A) 0.
B) 4.
C) 8.
D) 22.

Question 62

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Hamburgers per } \\\text { Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 30 & \\2 & 52 & \\3 & 67 & \\4 & 76 & \\5 & & 4\\\hline \text { Number of } & \text { Total Utility } & \text { Marginal Utility } \\\text { Sodas per Day } & & \\\hline 1 & 20 & \\2 & 35 & \\3 & 47 & \\4 & 57& \\5 & &7\\\hline\end{array}$$

-Refer to Table 6.1. The marginal utility of the second hamburger per day is

A) 10.
B) 15.
C) 22.
D) 52.

Question 63

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Hamburgers per } \\\text { Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 30 & \\2 & 52 & \\3 & 67 & \\4 & 76 & \\5 & & 4\\\hline \text { Number of } & \text { Total Utility } & \text { Marginal Utility } \\\text { Sodas per Day } & & \\\hline 1 & 20 & \\2 & 35 & \\3 & 47 & \\4 & 57& \\5 & &7\\\hline\end{array}$$

-Refer to Table 6.1. The total utility of five sodas per day is

A) 35.
B) 64.
C) 92.
D) indeterminate from this information.

Question 64

Refer to the information provided in Figure 6.8 below to answer the questions that follow. Figure 6.8
Refer to Figure 6.8. The total utility of the three movies is ________ and the marginal utility of the third movie is ________.

A) 15; 0
B) 25; 10
C) 28; 3
D) 0; 0

Question 65

Refer to the information provided in Figure 6.9 below to answer the questions that follow. Figure 6.9
Refer to Figure 6.9. The marginal utility of the second video game rental is

A) 8.
B) 10.
C) 25.
D) 40.

Question 66

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Hamburgers per } \\\text { Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 30 & \\2 & 52 & \\3 & 67 & \\4 & 76 & \\5 & & 4\\\hline \text { Number of } & \text { Total Utility } & \text { Marginal Utility } \\\text { Sodas per Day } & & \\\hline 1 & 20 & \\2 & 35 & \\3 & 47 & \\4 & 57& \\5 & &7\\\hline\end{array}$$

-Refer to Table 6.1. Assume that a store is giving hamburgers and sodas away for free. Consumers can have as many sodas and hamburgers as they want, but the food has to be consumed one unit at a time. If George has already had one soda and two hamburgers, then George should

A) next consume a soda to maximize his utility.
B) next consume a hamburger to maximize his utility.
C) be indifferent between consuming the second soda or the third hamburger.
D) consume neither another soda nor another hamburger to maximize his utility.

Question 67

Refer to the information provided in Table 6.2 below to answer the questions that follow.
Table 6.2
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Candy Bars per Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 40 & \\2 & 75 & \\3 & 100 & \\4 & 115 & \\5 & & 5\\\hline \text { Number of } & \text { Total Utility } & \text { Marginal Utility } \\ \text { Hot Dogs per Day } & & \\\hline 1 & 30& \\2 & 54 & \\3 & 72& \\4 & 84& \\5 & & 6 \\\hline\end{array}$$

-Refer to Table 6.2. The marginal utility of the second candy bar per day is

A) 10.
B) 15.
C) 35.
D) 55.

Question 68

Richard is consuming X and Y so that he is spending his entire income and MUx/Px = 6 and MUy/Py = 10. To maximize utility, he should

A) continue to consume the same amount of X and Y since he is already maximizing utility.
B) consume less of both X and Y.
C) consume more X and less Y.
D) consume less X and more Y.

Question 69

Refer to the information provided in Table 6.2 below to answer the questions that follow.
Table 6.2
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Candy Bars per Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 40 & \\2 & 75 & \\3 & 100 & \\4 & 115 & \\5 & & 5\\\hline \text { Number of } & \text { Total Utility } & \text { Marginal Utility } \\ \text { Hot Dogs per Day } & & \\\hline 1 & 30& \\2 & 54 & \\3 & 72& \\4 & 84& \\5 & & 6 \\\hline\end{array}$$

-Refer to Table 6.2. If the price of a candy bar is $1, the price of a hot dog is $2, and Aaron has $6 of income, Aaron's utility maximizing combination of sodas and hamburgers per day is

A) 1 candy bar and 2 hot dogs.
B) 4 candy bars and 1 hot dog.
C) 2 candy bars and 1.5 hot dogs.
D) indeterminate from this information.

Question 70

Jon is consuming X and Y so that he is spending his entire income and MUx/Px = 4 and MUy/Py = 4. To maximize utility, he should consume

A) the same amount of X and Y since he is already maximizing utility.
B) less of both X and Y.
C) more X and less Y.
D) less X and more Y.

Question 71

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Hamburgers per } \\\text { Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 30 & \\2 & 52 & \\3 & 67 & \\4 & 76 & \\5 & & 4\\\hline \text { Number of } & \text { Total Utility } & \text { Marginal Utility } \\\text { Sodas per Day } & & \\\hline 1 & 20 & \\2 & 35 & \\3 & 47 & \\4 & 57& \\5 & &7\\\hline\end{array}$$

-Refer to Table 6.1. If the price of a soda is $2, the price of a hamburger is $6, and George has $14 of income, George's utility maximizing combination of sodas and hamburgers per day is

A) 1 soda and 2 hamburgers.
B) 4 sodas and 1 hamburger.
C) 3 sodas and 1.5 hamburgers.
D) indeterminate from this information.

Question 72

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Hamburgers per } \\\text { Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 30 & \\2 & 52 & \\3 & 67 & \\4 & 76 & \\5 & & 4\\\hline \text { Number of } & \text { Total Utility } & \text { Marginal Utility } \\\text { Sodas per Day } & & \\\hline 1 & 20 & \\2 & 35 & \\3 & 47 & \\4 & 57& \\5 & &7\\\hline\end{array}$$

-Refer to Table 6.1. The total utility of five hamburgers per day is

A) 76.
B) 80.
C) 96.
D) indeterminate from this information.

Question 73

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Hamburgers per } \\\text { Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 30 & \\2 & 52 & \\3 & 67 & \\4 & 76 & \\5 & & 4\\\hline \text { Number of } & \text { Total Utility } & \text { Marginal Utility } \\\text { Sodas per Day } & & \\\hline 1 & 20 & \\2 & 35 & \\3 & 47 & \\4 & 57& \\5 & &7\\\hline\end{array}$$

-Refer to Table 6.1. The marginal utility of the third hamburger per day is

A) 5.
B) 15.
C) 22.
D) 67.

Question 74

Jon is consuming X and Y so that he is spending his entire income and MUx/Px = 8 and MUy/Py = 4. To maximize utility, he should consume

A) the same amount of X and Y since he is already maximizing utility.
B) less of both X and Y.
C) more X and less Y.
D) less X and more Y.

Question 75

Refer to the information provided in Table 6.2 below to answer the questions that follow.
Table 6.2
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Candy Bars per Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 40 & \\2 & 75 & \\3 & 100 & \\4 & 115 & \\5 & & 5\\\hline \text { Number of } & \text { Total Utility } & \text { Marginal Utility } \\ \text { Hot Dogs per Day } & & \\\hline 1 & 30& \\2 & 54 & \\3 & 72& \\4 & 84& \\5 & & 6 \\\hline\end{array}$$

-Refer to Table 6.2. The total utility of five candy bars per day is

A) 115.
B) 120.
C) 130.
D) indeterminate from this information.

Question 76

If MUx/Px < MUy/Py, then

A) spending a dollar less on Y and a dollar more on X increases utility.
B) spending a dollar less on X and a dollar more on Y increases utility.
C) X is more expensive than Y.
D) Y is more expensive than X.

Question 77

Refer to the information provided in Table 6.1 below to answer the questions that follow.
Table 6.1
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Hamburgers per } \\\text { Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 30 & \\2 & 52 & \\3 & 67 & \\4 & 76 & \\5 & & 4\\\hline \text { Number of } & \text { Total Utility } & \text { Marginal Utility } \\\text { Sodas per Day } & & \\\hline 1 & 20 & \\2 & 35 & \\3 & 47 & \\4 & 57& \\5 & &7\\\hline\end{array}$$

-Refer to Table 6.1. Diminishing marginal utility sets in after the ________ soda per day.

A) first
B) second
C) third
D) fourth

Question 78

Refer to the information provided in Figure 6.9 below to answer the questions that follow. Figure 6.9
Refer to Figure 6.9. The ________ video game rental has a marginal utility of zero.

A) first
B) second
C) third
D) fourth

Question 79

Refer to the information provided in Table 6.2 below to answer the questions that follow.
Table 6.2
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Candy Bars per Day }\end{array} & \text { Total Utility } & \text { Marginal Utility } \\\hline 1 & 40 & \\2 & 75 & \\3 & 100 & \\4 & 115 & \\5 & & 5\\\hline \text { Number of } & \text { Total Utility } & \text { Marginal Utility } \\ \text { Hot Dogs per Day } & & \\\hline 1 & 30& \\2 & 54 & \\3 & 72& \\4 & 84& \\5 & & 6 \\\hline\end{array}$$

-Refer to Table 6.2. Diminishing marginal utility sets in after the ________ candy bar per day.

A) first
B) second
C) third
D) fourth

Question 80

Refer to the information provided in Figure 6.8 below to answer the questions that follow. Figure 6.8
Refer to Figure 6.8. The ________ movie rental has a marginal utility of zero.

A) first
B) second
C) third
D) fourth