Question : Quantity of pizza Total utility from pizza Quantity of Diet Pepsi : 1238694

 

 

 

Quantity of pizza

Total utility from pizza

Quantity of Diet Pepsi

Total utility from Diet Pepsi

0

0

0

0

1

24

1

14

2

44

2

26

3

60

3

36

4

72

4

44

5

76

5

50

6

79

6

54

7

80

7

56

 

61) Suppose that you consume only pizza and Diet Pepsi. The table above gives your utility from consuming these two goods. What is the marginal utility you get from the fourth slice of pizza?

A) 36

B) 18

C) 12

D) 4

E) 72

62) Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 each. The table above gives your utility from consuming these two goods. If your income is $14, which of the following consumption combinations will you choose?

A) 3 slices of pizza and 1 Diet Pepsi

B) 2 slices of pizza and 3 Diet Pepsis

C) 1 slice of pizza and 5 Diet Pepsis

D) 0 slices of pizza and 7 Diet Pepsis

E) None of the above answers is correct.

 

63) Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 each. The table above gives your utility from consuming these two goods. If your income is $20, which of the following consumption combinations will you choose?

A) 5 slices of pizza and no Diet Pepsi

B) 4 slices of pizza and 2 Diet Pepsis

C) 3 slices of pizza and 4 Diet Pepsis

D) 2 slice of pizza and 6 Diet Pepsis

E) None of the above answers is correct.

 

64) If the price of steak rises, a consumer who had been maximizing his or her utility before will buy less steak because its

A) total utility falls.

B) ratio of marginal utility to price is now less than that for other goods.

C) marginal utility has fallen.

D) ratio of marginal utility to total utility falls.

E) ratio of marginal utility to price is now larger than that for other goods.

65) Moving downward along a demand curve, so that the price falls and the quantity demanded increases, the marginal utility of each additional unit of the good consumed

A) always increases.

B) always decreases.

C) stays the same.

D) could increase, decrease, or stay the same.

E) at first increases and then decreases.

 

66) The demand curve for macadamia nuts is downward sloping. This slope is because consumers maximize their utility and an increase in the price of macadamia nuts leads to

A) no change in quantity demanded.

B) an increase in the marginal utility per dollar from macadamia nuts.

C) a decrease in the marginal utility per dollar from macadamia nuts.

D) consumers’ budget lines rotating outward with their slopes changing.

E) consumers’ budget lines shifting outward with no change in their slope.

 

67) Juan’s marginal utility from strawberries is 200 and his marginal utility from cream is 100. Juan spends all his budget. The price of strawberries is $5 per pound and the price of cream is $5 per pint. To maximize his utility, Juan should

A) buy more cream and fewer strawberries.

B) buy less cream and more strawberries.

C) buy more cream and more strawberries.

D) buy less cream and fewer strawberries.

E) change nothing because Juan is maximizing his utility now.

68) Paula is currently spending all of her budget and she finds that the marginal utility per dollar from dresses exceeds the marginal utility per dollar from hats. To maximize her utility, Paula should therefore buy

A) more dresses and fewer hats.

B) more hats and fewer dresses.

C) more dresses and hats.

D) fewer dresses and hats.

E) probably change her purchases but more information is needed to determine if she should buy more or fewer dresses and hats.

 

69) In economics, utility

A) always decreases as income increases.

B) equals opportunity cost.

C) is an index of satisfaction.

D) is measured by the same units as relative price.

E) and relative price are the same thing.

 

70) Marginal utility is the

A) change in total utility that results from a one-unit increase in the quantity of a good consumed.

B) total benefit from the consumption of a good or service.

C) quantity of a good a consumer prefers.

D) average utility per unit consumed.

E) change in total utility that results from a one dollar increase in the price of a good consumed.