Question 1

To maximize satisfaction from purchasing several different goods and services, expenditures must be allocated so that:

Accepted Answer

The principle of maximizing satisfaction or utility from purchasing goods and services involves getting the most value or utility for one's money. This means allocating expenditures in a way that each dollar spent brings the maximum possible satisfaction or utility, which is best described by option D.

Question 2

Suppose Good A costs $1.00 per unit and Good B costs $2.00 per unit. If each additional unit of Good B adds three times as much to your total satisfaction than is added by each additional unit of Good A, you will increase your total satisfaction from consuming goods A and B by:

Accepted Answer

The principle of marginal utility per dollar spent indicates that consumers maximize satisfaction by equalizing the marginal utility per dollar across all goods. Since Good B provides three times as much satisfaction per unit as Good A but only costs twice as much, consumers increase total satisfaction by consuming less of Good A and more of Good B, adjusting until the marginal utility per dollar spent is equalized across both goods.

Question 3

Suppose each additional unit of Good X adds three times as much to your total satisfaction as is added by each additional unit of Good Y, and that Good Y costs $12.00. To maximize your satisfaction from consuming Good X and Good Y, you should be willing to spend:

Accepted Answer

The principle of marginal utility per dollar spent states that to maximize total satisfaction, the consumer should allocate their budget in such a way that the marginal utility per dollar spent is equal across all goods. Since each additional unit of Good X adds three times as much satisfaction as Good Y, and Good Y costs $12.00, the consumer should be willing to spend up to $36.00 on Good X (3 times the cost of Good Y) to maintain this balance and maximize satisfaction.

Question 4

If a concert ticket costs ten times as much as a movie ticket, maximizing satisfaction from attending the concert requires that the additional utility from the concert be:

Accepted Answer

The additional utility from attending the concert must be at least ten times as great as the additional utility from attending the movie to justify the cost, reflecting the principle of marginal utility per dollar spent.

Question 5

Attending a concert costs Barney eight times as much as going to a movie, and gives four times the additional satisfaction that the movie gives. To maximize his satisfaction Barney should go to the:

Accepted Answer

The key to maximizing satisfaction is to consider the satisfaction per dollar spent. Since the concert costs eight times as much but only provides four times the additional satisfaction, the movie offers better value in terms of satisfaction per dollar.

Question 6

-To maximize the satisfaction from a $240.00 expenditure, a person should buy:

Accepted Answer

The answer of 
-To maximize the satisfaction from a $240.00...

Question 7

-To maximize satisfaction, the first good in the table you should purchase is:

Accepted Answer

Good Y offers the highest additional utility per dollar spent, making it the most efficient choice for maximizing satisfaction given a budget constraint. This approach ensures you get the most utility for each dollar you spend.

Question 8

Given the four goods below, which one adds the most utility for the purchaser's money?

Accepted Answer

The answer of Given the four goods below, which one...

Question 9

Given the four goods below, which one adds the most utility for the purchaser's money?

Accepted Answer

The answer of Given the four goods below, which one...

Question 10

To maximize satisfaction from purchasing several different goods and services, expenditures must be allocated in a way that:

Accepted Answer

The principle of maximizing satisfaction (or utility) from purchasing goods and services involves allocating expenditures so that each dollar spent adds the most utility or satisfaction to the purchaser. This is achieved by equating the marginal utility per dollar spent across all goods and services, rather than simply saving some income, focusing solely on high utility items without considering their prices, or aiming to acquire the largest quantity of goods and services.

Question 11

The rule for maximizing satisfaction from purchasing goods and services is:

Accepted Answer

The rule for maximizing satisfaction from purchasing goods and services is a principle that is both found in economics textbooks and practiced by buyers in the real world, as individuals and businesses aim to get the most value out of their purchases.

Question 12

To maximize the satisfaction from consuming good A and good B, each should be purchased up to the point where the relationship between their marginal utilities and prices is:

Accepted Answer

The principle of consumer equilibrium or the maximization of utility states that consumers allocate their income in such a way that the last dollar spent on each good provides the same amount of additional utility. This is mathematically represented as the ratio of the marginal utility (MU) of a good to its price (P) being equal across all goods, hence MUa/Pa = MUb/Pb.

Question 13

The price of good X is $16.00, the price of good Y is $24.00, and the marginal utility from the last unit of good X consumed is 48 units of satisfaction. To maximize total satisfaction from consuming this amount of goods X and Y, the marginal utility for good Y must be:

Accepted Answer

To maximize total satisfaction, consumers should allocate their budget in a way that the marginal utility per dollar spent on each good is equal. The marginal utility per dollar for good X is 48 units of satisfaction / $16 = 3 units of satisfaction per dollar. To find the marginal utility for good Y that would equalize the marginal utility per dollar, we set it equal to 3 units of satisfaction per dollar: MU_Y / $24 = 3. Solving for MU_Y gives MU_Y = 72 units of satisfaction.

Question 14

Suppose that, for a particular buyer of Goods A and B, MUa/Pa = 1.5 and MUb/Pb = 2.5. Based on this information you know:

Accepted Answer

The marginal utility per dollar spent (MU/P) for Good B is higher than for Good A, indicating that the buyer would gain more satisfaction per dollar by consuming more of Good B and less of Good A.

Question 15

Suppose that, for a buyer of Goods X and Y, MUx/Px = 0.8 and MUy/Py = 1.2. Based on this information, which of the following must be true?

Accepted Answer

The marginal utility per dollar spent (MU/P) for Good Y is higher than that for Good X, indicating that each dollar spent on Good Y yields more satisfaction than a dollar spent on Good X.

Question 16

Mariellen is considering buying Good A and Good B. Her MUa/Pa is 1.5, and Good B costs $60. How many points will Good B need to add to her utility for her to maximize her satisfaction from consuming both goods?

Accepted Answer

To maximize satisfaction, the ratio of the marginal utility to price for both goods should be equal. Given MUa/Pa = 1.5 and Pb = $60, for Good B, the marginal utility (MUb) should be such that MUb/Pb = 1.5. Therefore, MUb = 1.5 * $60 = 90 points.

Question 17

According to Application 10.1, "Family Gossip:"

Accepted Answer

The application suggests that family members may have differing opinions on spending decisions and that high prices can be a significant factor in decisions, even for "once in a lifetime" purchases.

Question 18

To maximize satisfaction from earning income, an individual should:

Accepted Answer

The correct approach to maximizing satisfaction from earning income involves balancing the satisfaction gained from more income against the sacrifices made to earn that income, such as time and effort. This balance ensures that the individual does not overwork to the detriment of their well-being or underwork to the point of financial stress.

Question 19

To maximize satisfaction from earning income, an individual should:

Accepted Answer

The principle of maximizing satisfaction from earning income involves finding a balance between the income earned from working additional hours and the value of the opportunities (such as leisure or time with family) that are forgone by working those hours. This balance ensures that the marginal benefit of working aligns with the marginal cost of the time spent working, leading to optimal satisfaction.

Question 20

Which of the following costs and benefits should always be ruled out when determining the well-being from holding a job?

Accepted Answer

All the options listed (personal satisfaction, financial costs, and nonmonetary costs) are relevant factors in determining the well-being from holding a job. None of them should be ruled out as they all contribute to the overall assessment of job-related well-being.

Quiz 10: Households and Businesses: An Overview

To maximize satisfaction from purchasing several different goods and services, expenditures must be allocated so that:

Suppose Good A costs $1.00 per unit and Good B costs $2.00 per unit. If each additional unit of Good B adds three times as much to your total satisfaction than is added by each additional unit of Good A, you will increase your total satisfaction from consuming goods A and B by:

Suppose each additional unit of Good X adds three times as much to your total satisfaction as is added by each additional unit of Good Y, and that Good Y costs $12.00. To maximize your satisfaction from consuming Good X and Good Y, you should be willing to spend:

If a concert ticket costs ten times as much as a movie ticket, maximizing satisfaction from attending the concert requires that the additional utility from the concert be:

Attending a concert costs Barney eight times as much as going to a movie, and gives four times the additional satisfaction that the movie gives. To maximize his satisfaction Barney should go to the:

-To maximize the satisfaction from a $240.00 expenditure, a person should buy:

-To maximize satisfaction, the first good in the table you should purchase is:

Given the four goods below, which one adds the most utility for the purchaser's money?

Given the four goods below, which one adds the most utility for the purchaser's money?

To maximize satisfaction from purchasing several different goods and services, expenditures must be allocated in a way that:

The rule for maximizing satisfaction from purchasing goods and services is:

To maximize the satisfaction from consuming good A and good B, each should be purchased up to the point where the relationship between their marginal utilities and prices is:

The price of good X is $16.00, the price of good Y is $24.00, and the marginal utility from the last unit of good X consumed is 48 units of satisfaction. To maximize total satisfaction from consuming this amount of goods X and Y, the marginal utility for good Y must be:

Suppose that, for a particular buyer of Goods A and B, MUa/Pa = 1.5 and MUb/Pb = 2.5. Based on this information you know:

Suppose that, for a buyer of Goods X and Y, MUx/Px = 0.8 and MUy/Py = 1.2. Based on this information, which of the following must be true?

Mariellen is considering buying Good A and Good B. Her MUa/Pa is 1.5, and Good B costs $60. How many points will Good B need to add to her utility for her to maximize her satisfaction from consuming both goods?

According to Application 10.1, "Family Gossip:"

To maximize satisfaction from earning income, an individual should:

To maximize satisfaction from earning income, an individual should:

Which of the following costs and benefits should always be ruled out when determining the well-being from holding a job?