CH8 quiz answers PDF

Preview

Summary

ECON QUIZ ANSWERS...

Description

Exam Name___ QUIZZ

3 CHAPTER 8 UTILITY AND DEMAND_ _______________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

1) John likes to eat apples, oranges, and pears. If John increases his consumption of oranges, ceteris paribus, marginal utility theory tell us that John's marginal utility of A) oranges, apples, and pears all decrease. B) pears decreases. C) oranges remains constant. D) oranges decreases. E) apples decreases.

1)

Use the table below to answer the following questions. Table 8.1.1

Quantity 0

Total Utility 0

1

30

2

A

3

B

4

50

Marginal Utility 30 12 5 C

2) Refer to Table 8.1.1. The value of B is A) 47. B) 30.

2) C) 0.

D) 42.

E) 18.

Use the table below to answer the following question. Table 8.1.2

Units Consumed 1 2 3 4

Jim's Total Utility 12 22 30 36

Sally's Total Utility 16 26 34 40

3) Table 8.1.2 gives total utilities for Jim and Sally. Which one of the following statements is true? A) Jim has increasing marginal utility. B) For Sally, the marginal utility of the third unit consumed is 6. C) Jim and Sally receive the same marginal utility from the third unit consumed. D) If Jim consumes 2 units, his total utility is 34 units. E) If Sally consumes 2 units, her total utility is 10 units.

1

3)

4) A budget line is drawn with A) price of one good on the vertical axis and the price of the second good on the horizontal axis. B) quantity of one good on the horizontal axis and its total utility on the vertical axis. C) quantity of one good on the vertical axis and the quantity of the second good on the horizontal axis. D) quantity of one good on the vertical axis and its price on the horizontal axis. E) quantity of one good on the horizontal axis and its price on the vertical axis.

4)

Use the table below to answer the following questions. Table 8.2.1

Hours Spent 1 2 3 4

Total Utility from Sailing 100 140 170 190

Total Utility from Skiing 70 110 140 150

5) Refer to Table 8.2.1. Consider Sam's utility from sailing and skiing. If the price of sailing is $10 per hour and the price of skiing is $20 per hour, Sam will choose to spend A) all his time skiing. B) more time skiing than sailing. C) the same amount of time sailing and skiing, since they give the same amount of utility. D) more time sailing than skiing. E) all his time sailing.

5)

Use the table below to answer the following questions. Table 8.2.2

Bags of Marginal Bottles of Popcorn Utility Pop 1 120 1 2 100 2 3 80 3 4 70 4

Marginal Utility 120 70 60 40

6) Refer to Table 8.2.2. What is the total utility if 3 bags of popcorn and 2 bottles of pop are consumed? 6) A) 100 B) 490 C) 660 D) 150 E) 310 7) According to the marginal utility theory, consumers A) maximize utility and minimize marginal utility. B) maximize utility by spending the most on the least expensive good. C) maximize utility by spending the least on the least expensive good. D) maximize utility and equalize marginal utility per dollar across all goods. E) save part of their income for future consumption.

2

7)

8) If Ms. Petersen is maximizing her utility in the consumption of goods A and B, which one of the following statements must be true? A) TUA = TU B

8)

B) MUA/PA = MUB/PB C) TUA/PA = TUB/PB D) MUA/PB = MUB/PA E) MUA = MUB Use the table below to answer the following questions. Windsurfing equipment rents for $10 per hour and snorkeling equipment rents for $5 per hour. Table 8.3.1

Hours Total Utility Total Utility per Month from Windsurfing from Snorkeling 1 60 20 2 110 38 3 150 53 4 180 64 5 200 70

9) Devon enjoys windsurfing and snorkeling. His total utility from each activity is summarized in Table 8.2.1. Devon has $35 to spend. How long will Devon choose to windsurf and to snorkel? A) 2 hours windsurfing and 3 hours snorkeling B) 4 hours windsurfing and no hours snorkeling C) 2 hour windsurfing and 4 hours snorkeling D) 1 hour windsurfing and 5 hours snorkeling E) 3 hours windsurfing and 1 hour snorkeling

9)

10) Marginal utility theory predicts that a rise in the price of a banana results in A) a movement downward along the demand curve for bananas. B) the demand curve for bananas shifting rightward and the supply curve for bananas shifting rightward. C) the demand curve for bananas shifting rightward. D) a movement upward along the demand curve for bananas. E) the demand curve for bananas shifting leftward.

10)

3

Answer Key Testname: QUIZZ 3 CH8 UTILITY AND DEMAND 5 OCT 2017

1) D 2) A 3) C 4) C 5) D 6) B 7) D 8) B 9) E 10) D

4...