Question 1

Faruq spends all of his income on two goods: tacos and milkshakes.His income is $100, the price of tacos is
$10, and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The slope of Faruq's budget line is equal to:
A.-1/5.
B.-5.
C.1/5.
D.5.

Accepted Answer

The answer of Faruq spends all of his income on...

Question 2

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.Carmen's marginal utility from eating macaroni and cheese is zero for
the ___ serving.
A.first
B.Second
C.third
D.fifth

Accepted Answer

The answer of (Table: The Utility of Macaroni and Cheese)...

Question 3

Abdul spends all of his income on food (F) and shelter (S).His budget line is given by the equation 5F + 20S =
100.Which of the following consumption bundles is part of his consumption possibilities?
A.8 units of F and 3 units of S
B.14 units of F and 2 units of S
C.0 units of F and 6 units of S
D.20 units of F and 15 units of S

Accepted Answer

The answer of Abdul spends all of his income on...

Question 4

If Vanessa buys more pomegranates and fewer bananas, the _ _____ of pomegranates will _ , and
the ____ __ of bananas will _ _.
A.marginal utility; fall; marginal utility; rise
B.marginal utility; rise; marginal utility; fall
C.total utility; fall; marginal utility; rise
D.marginal utility; rise; total utility; rise

Accepted Answer

The answer of If Vanessa buys more pomegranates and fewer...

Question 5

Figure: Budget Lines for Tea and Scones
  (Figure: Budget Lines for Tea and Scones) Look at the figure Budget Lines for Tea and Scones.For months now, Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone has been $1.Which of the charts in the figure shows what will happen to her budget line if the price of a scone rises to $2? 
A.Chart A
B.Chart B
C.Chart C
D.Chart D

Accepted Answer

The answer of Figure: Budget Lines for Tea and Scones
...

Question 6

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.The marginal utility she derives from the fifth serving she eats is:
   
A.15.
B.10.
C.5
D.0.

Accepted Answer

The answer of (Table: The Utility of Macaroni and Cheese)...

Question 7

Figure: Budget Lines for Tea and Scones
   (Figure: Budget Lines for Tea and Scones) Look at the figure Budget Lines for Tea and Scones.For months now, Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone has been $1.Which of the charts in the figure shows what will happen to her budget line if the price of both a cup of tea and a scone increase to $2? 
A.Chart A
B.Chart B
C.Chart C
D.Chart D

Accepted Answer

The answer of Figure: Budget Lines for Tea and Scones
...

Question 8

Figure: Budget Lines for Tea and Scones
  (Figure: Budget Lines for Tea and Scones) Look at the figure Budget Lines for Tea and Scones.For months
now, Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone has been $1.Which of the charts in the figure shows what will happen to her budget line if the price of a cup of tea falls to $0.50? 
A.Chart A
B.Chart B
C.Chart C
D.Chart D

Accepted Answer

The answer of Figure: Budget Lines for Tea and Scones
...

Question 9

Faruq spends all of his income on two goods: tacos and milkshakes.His income is $100, the price of tacos is
$10, and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The horizontal intercept for Faruq's budget line is equal to tacos.
A.50
B.10
C.5
D.100

Accepted Answer

The answer of Faruq spends all of his income on...

Question 10

As you consume more turkey relative to mashed potatoes, the __ of turkey eventually decreases.
A.price
B.usefulness
C.marginal utility
D.demand

Accepted Answer

Marginal utility refers to the additional satisfaction or benefit a consumer receives from consuming one more unit of a good or service. As the consumer consumes more turkey relative to mashed potatoes, the marginal utility of turkey decreases because the satisfaction or benefit obtained from consuming an additional unit of turkey decreases.

Question 11

The amount by which total utility ______ when an additional unit of a good is consumed is ___ _.
A.changes; average utility
B.increases; additional utility
C.decreases; maximum utility
D.changes; marginal utility

Accepted Answer

The answer of The amount by which total utility ______...

Question 12

Faruq spends all of his income on two goods: tacos and milkshakes.His income is $100, the price of tacos is
$10, and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The opportunity cost of one taco equals ___ milkshakes.
A.2
B.10
C.5
D.1/5

Accepted Answer

The answer of Faruq spends all of his income on...

Question 13

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.The marginal utility she derives from the sixth serving she eats is:
A.-25.
B.0.
C.25.
D.-15.

Accepted Answer

The answer of (Table: The Utility of Macaroni and Cheese)...

Question 14

If a consumer buys more plastic bins and fewer door hooks, the ___ ___ of plastic bins will __ , and
the ____ __ of door hooks will __ _.
A.marginal utility; fall; marginal utility; rise
B.marginal utility; rise; marginal utility; fall
C.total utility; fall; marginal utility; rise
D.marginal utility; rise; total utility; rise

Accepted Answer

The answer of If a consumer buys more plastic bins...

Question 15

The marginal utility of eating sweet potatoes is the:
A.change in total utility from consuming an additional serving.
B.total utility divided by the number of servings consumed.
C.change in total utility divided by the number of servings consumed.
D.total utility divided by the change in the number of servings consumed.

Accepted Answer

Marginal utility refers to the additional satisfaction or benefit that a consumer receives from consuming one more unit of a good or service. Therefore, the marginal utility of eating sweet potatoes would be the change in total utility (satisfaction) from consuming an additional serving. Option A correctly states this definition. Option B is incorrect as it refers to average utility. Option C is incorrect as it divides the change in total utility by the number of servings consumed, which is not the definition of marginal utility. Option D is incorrect as it divides total utility by the change in the number of servings consumed, which again does not reflect the definition of marginal utility.

Question 16

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.The marginal utility she derives from the second serving she eats is:
A.35.
B.15.
C.10.
D.5.

Accepted Answer

The answer of (Table: The Utility of Macaroni and Cheese)...

Question 17

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.Carmen's marginal utility from eating macaroni becomes negative at the
__ serving.
A.first
B.second
C.Fifth
D.sixth

Accepted Answer

The answer of (Table: The Utility of Macaroni and Cheese)...

Question 18

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.Carmen's total utility is maximized when she eats the
serving.
A.first
B.second
C.fifth
D.sixth

Accepted Answer

The answer of (Table: The Utility of Macaroni and Cheese)...

Question 19

Figure: Budget Lines for Tea and Scones
   (Figure: Budget Lines for Tea and Scones) Look at the figure Budget Lines for Tea and Scones.For months now, Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone has been $1.Which of the charts in the figure shows what will happen to her budget line if her income decreases to $10? 
A.Chart A
B.Chart B
C.Chart C
D.Chart D

Accepted Answer

The answer of Figure: Budget Lines for Tea and Scones
...

Question 20

Figure: Budget Lines for Tea and Scones
  (Figure: Budget Lines for Tea and Scones) Look at the figure Budget Lines for Tea and Scones.For months now, Agnes has had $20 per month to spend on tea and scones.The price of each cup of tea and each scone is $1.Which of the charts in the figure shows what will happen to her budget line if her income increases to
$25? 
A.Chart A
B.Chart B
C.Chart C
D.Chart D

Accepted Answer

The answer of Figure: Budget Lines for Tea and Scones
...

Quiz 10: The Rational Consumer

Faruq spends all of his income on two goods: tacos and milkshakes.His income is $100, the price of tacos is $10, and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The slope of Faruq's budget line is equal to: A.-1/5. B.-5. C.1/5. D.5.

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.Carmen's marginal utility from eating macaroni and cheese is zero for the ___ serving. A.first B.Second C.third D.fifth

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.The marginal utility she derives from the fifth serving she eats is: A.15. B.10. C.5 D.0.

As you consume more turkey relative to mashed potatoes, the __ of turkey eventually decreases. A.price B.usefulness C.marginal utility D.demand

The amount by which total utility ____ when an additional unit of a good is consumed is _ _. A.changes; average utility B.increases; additional utility C.decreases; maximum utility D.changes; marginal utility

Faruq spends all of his income on two goods: tacos and milkshakes.His income is $100, the price of tacos is $10, and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The opportunity cost of one taco equals ___ milkshakes. A.2 B.10 C.5 D.1/5

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.The marginal utility she derives from the sixth serving she eats is: A.-25. B.0. C.25. D.-15.

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.The marginal utility she derives from the second serving she eats is: A.35. B.15. C.10. D.5.

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.Carmen's marginal utility from eating macaroni becomes negative at the __ serving. A.first B.second C.Fifth D.sixth

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.Carmen's total utility is maximized when she eats the serving. A.first B.second C.fifth D.sixth

Quiz 10: The Rational Consumer

Faruq spends all of his income on two goods: tacos and milkshakes.His income is $100, the price of tacos is $10, and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The slope of Faruq's budget line is equal to: A.-1/5. B.-5. C.1/5. D.5.

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.Carmen's marginal utility from eating macaroni and cheese is zero for the ___ serving. A.first B.Second C.third D.fifth

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.The marginal utility she derives from the fifth serving she eats is: A.15. B.10. C.5 D.0.

As you consume more turkey relative to mashed potatoes, the __ of turkey eventually decreases. A.price B.usefulness C.marginal utility D.demand

The amount by which total utility ______ when an additional unit of a good is consumed is ___ _. A.changes; average utility B.increases; additional utility C.decreases; maximum utility D.changes; marginal utility

Faruq spends all of his income on two goods: tacos and milkshakes.His income is $100, the price of tacos is $10, and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The opportunity cost of one taco equals ___ milkshakes. A.2 B.10 C.5 D.1/5

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.The marginal utility she derives from the sixth serving she eats is: A.-25. B.0. C.25. D.-15.

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.The marginal utility she derives from the second serving she eats is: A.35. B.15. C.10. D.5.

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.Carmen's marginal utility from eating macaroni becomes negative at the __ serving. A.first B.second C.Fifth D.sixth

(Table: The Utility of Macaroni and Cheese) Look at the table The Utility of Macaroni and Cheese.Carmen loves macaroni and cheese for Thanksgiving.Carmen's total utility is maximized when she eats the serving. A.first B.second C.fifth D.sixth

The amount by which total utility ____ when an additional unit of a good is consumed is _ _. A.changes; average utility B.increases; additional utility C.decreases; maximum utility D.changes; marginal utility