Economics Ch. 6 Quiz

Frage 1 von 33

1

Marginal utility is a measure

Wähle eine der folgenden:

of total utility derived from consuming a given amount of a good
of the total utility gained from consuming an extra unit of a good
computed by dividing total utility by the amount of a good consumed
determined by a production condition in a market

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Frage 2 von 33

1

"the second glass of Evian water was very good. May I have another?" which of the following is necessarily true regarding this statement?

Wähle eine der folgenden:

the marginal utility of the second glass is negative
the marginal utility of the second glass is less than the marginal utility of the first glass
the marginal utility of the second glass is positive
the water is free

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Frage 3 von 33

1

Total utility can be calculated as the

Wähle eine der folgenden:

sum of all marginal utilities
price paid for one unit of a good
product of all marginal utilities
total expenditure on all units of a good the consumer buys

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Frage 4 von 33

1

Demand curves usually slope downward because of the income and substitution effects, and because of the law of diminishing marginal utility

Wähle eins der folgenden:

WAHR
FALSCH

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Frage 5 von 33

1

Newspaper vending machines illustrate that publishers believe

Wähle eine der folgenden:

the average utility of 2 identical papers is 0 or less
the total utility from 2 identical newspapers is 0 or less
the marginal utility of a second identical newspaper is 0 or less
the marginal utility of a second identical newspaper is greater than the marginal utility of the first newspaper

Erklärung

Frage 6 von 33

1

Diminishing marginal utility means that

Wähle eine der folgenden:

as you consume more of a good, other things constant, the total satisfaction you obtain from consuming this good tends to fall
as you hire more labor, other things constant, the total amount produced begins to fall
as you hire more labor, other things constant, the marginal product begins to fall
as you consume more of a good, other things constant, the additional satisfaction you obtain from each additional unit of the good tends to fall
as you consume more of a good, other things constant, the extra satisfaction you obtain from each extra good becomes negative

Erklärung

Frage 7 von 33

1

The marginal utility of a second copy of today's New York Times is

Wähle eine der folgenden:

infinite
practically zero
positive and greater than the marginal of the first copy
equal to the marginal utility of the first copy

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Frage 8 von 33

1

Which of the following sayings describes the concept of diminishing marginal utility?

Wähle eine der folgenden:

time is money
penny wise and pound foolish
absence makes the heart grow founder
a penny saved is a penny earned

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Frage 9 von 33

1

the reason you don't drink 5 cups of coffee at breakfast is that

Wähle eine der folgenden:

the marginal utility of extra cups of coffee eventually diminishes
most people cannot afford 5 cups
the total utility of coffee rises as you consume more cups
the price of coffee rises as you consume more cups

Erklärung

Frage 10 von 33

1

Joe the economist tells his wife, Jane, that he wants to spend a weekend fishing with friends. She replies "you don't love me anymore". Just before she hits Joe with a croquet mallet, Joe explains to her that she has confused the concepts of

Wähle eine der folgenden:

marginal utility and price
income and price
marginal utility and total utility
love and death

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Frage 11 von 33

1

In exhibit 6-12, consumer surplus at a price of $2 is the difference between what consumers are willing to

Wähle eine der folgenden:

pay for a quantity of goods and what they actually pay, represented by triangle abc
pay for a quantity of goods and what they actually pay, represented by triangle dcb
pay for a quantity of goods and what they actually pay, represented by triangle adc
receive for a good and what they actually get, represented by triangle abc

Erklärung

Frage 12 von 33

1

Which area in exhibit 6-13 represents consumer surplus at market equilibrium?

Wähle eine der folgenden:

area a
area b
area c
area a+b+c
area a+b

Erklärung

Frage 13 von 33

1

Suppose I am willing to pay $300 for roller blades and I purchase them on sale for $200. My consumer surplus is

Wähle eine der folgenden:

$300
3/2
$100
$200
$0

Erklärung

Frage 14 von 33

1

The consumers' surplus derived from the last unit of a good purchased

Wähle eine der folgenden:

tends to be less than 0
tends to be equal to 0
tends to be equal to the price of the good
tends to be greater than the price of the good

Erklärung

Frage 15 von 33

1

The market demand curve is

Wähle eine der folgenden:

any individual's demand curve multiplied by the number of consumers in the market
the relationship between income and quantity demanded
the horizontal sum of the individual demand curve for all consumers in the market
the vertical summation of all individual demand curves

Erklärung

Frage 16 von 33

1

A measure of consumer surplus in any market is

Wähle eine der folgenden:

total expenditure on the good
the area above the supply curve and below the price
the area beneath the demand curve
the area beneath the demand curve and above the price

Erklärung

Frage 17 von 33

1

Consumers derive consumer surplus whenever

Wähle eine der folgenden:

the monetary value of total utility equal total expenditure
the monetary value of total utility is greater than total expenditure
The monetary value of total utility is less than total expenditure
marginal utility is greater than total utility

Erklärung

Frage 18 von 33

1

For any given price, the more elastic the demand for a product is, the greater will be the consumer surplus

Wähle eins der folgenden:

WAHR
FALSCH

Erklärung

Frage 19 von 33

1

When a service, such as medical care, is provided free of charge,

Wähle eine der folgenden:

most people consume an infinite amount of it
most people do not much care about getting good value for their money
people do not derive any consumer surplus from it
we say that the demand for it is perfectly elastic

Erklärung

Frage 20 von 33

1

Refer to exhibit 6-17. If D, D', and D" represents the demand curves for the only 3 consumers in the market, then the market quantity demanded at a price of $15 will be

Wähle eine der folgenden:

150
120
90
60
30

Erklärung

Frage 21 von 33

1

refer to exhibit 6-17. If D, D', and D" represents the demand curves for the only 3 consumers in the market, then the market quantity demanded at a price of $45 will be

Wähle eine der folgenden:

50
70
90
110
130

Erklärung

Frage 22 von 33

1

Refer to exhibit 6-17. If D, D', and D" represent the demand curves for the only 3 consumers in the market, then the market quantity demanded at a price of $30 will be

Wähle eine der folgenden:

40
60
80
100
120

Erklärung

Frage 23 von 33

1

refer to exhibit 6-17. If D, D', and D" represent the demand curve for the only 3 consumers in the market, then the market demand curve will be more ____ than each of the 3 individual demand curves

Wähle eine der folgenden:

steep (slope will be more negative)
elastic
flat (slope will be less negative)
inelastic

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Frage 24 von 33

1

Suppose Jerry consumers 3 hamburgers at McDonald's one evening. He figured the last one was just worth the price he paid for it. If the hamburgers he buys have a price of $1. then

Wähle eine der folgenden:

her earned no consumer surplus
he would have earned consumer surplus if he had eaten one more hamburger
he was irrational
he may have earned consumer surplus on the first 2 hamburgers

Erklärung

Frage 25 von 33

1

If you buy a good, its expected marginal value to you

Wähle eine der folgenden:

may be greater than or equal to but not less than its price
may be less than or equal to but not greater than its price
is less than its price
is greater than its price

Erklärung

Frage 26 von 33

1

When the price is P in exhibit 6-11, the shaded area represents

Wähle eine der folgenden:

a shortage
producer surplus
a price floor
consumer surplus

Erklärung

Frage 27 von 33

1

Consumer surplus is

Wähle eine der folgenden:

the difference between the maximum amount that a consumer is willing to pay for a given amount of a good and the amount that the consumer actually pays
the difference between the price of the good paid by the consumer and the costs of production to the seller
the amount by which quantity supplied exceeds quantity demanded at the current market price
the amount by which quantity demanded exceeds quantity supplied at the current market price

Erklärung

Frage 28 von 33

1

At point b in exhibit 6-9, total utility is valued at

Wähle eine der folgenden:

$30, consumer expenditure is $20, and consumer surplus is $10
$26, consumer expenditure is $20, and consumer surplus is $6
$20, consumer expenditure is $20, and consumer surplus is $0
$30, consumer expenditure is $4, and consumer surplus is $26

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Frage 29 von 33

1

What happens to consumer surplus as price falls along a given demand curve?

Wähle eine der folgenden:

it always increases
it always decreases
it never changes
it only increases if price increases just a little

Erklärung

Frage 30 von 33

1

when price decreases, consumer surplus

Wähle eine der folgenden:

increases
remains constant
decreases
becomes negative

Erklärung

Frage 31 von 33

1

at point a in exhibit 6-9, consumer surplus is

Wähle eine der folgenden:

$0
$5
$6
$20
$26

Erklärung

Frage 32 von 33

1

Elvis values the first gravy sandwich at $5, the second at $4.50, and the third at $4. If he buys three for $4 each, his consumer surplus is

Wähle eine der folgenden:

$5
$4
$1.50
$9.50
$12

Erklärung

Frage 33 von 33

1

On a normal day, Emily Mapai's demand curve for a cup of hot chocolate is initially shown as D in exhibit 6-15. On a day when the high temperature does not get above zero degrees, her demand curve increases to D'. At price P for a cup of hot chocolate, Emily's consumer surplus on a freezing day

Wähle eine der folgenden:

cannot be determined without calculating an exact marginal valuation
increases a great deal over her consumer surplus on a normal day
will vary depending on whether hot chocolate is a normal or an inferior good
increases only if her demand curve is unit elastic

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Mid Term II

Economics Ch. 6 Quiz

Frage 1 von 33

Marginal utility is a measure

Wähle eine der folgenden:

Erklärung

Frage 2 von 33

"the second glass of Evian water was very good. May I have another?" which of the following is necessarily true regarding this statement?

Wähle eine der folgenden:

Erklärung

Frage 3 von 33

Total utility can be calculated as the

Wähle eine der folgenden:

Erklärung

Frage 4 von 33

Demand curves usually slope downward because of the income and substitution effects, and because of the law of diminishing marginal utility

Wähle eins der folgenden:

Erklärung

Frage 5 von 33

Newspaper vending machines illustrate that publishers believe

Wähle eine der folgenden:

Erklärung

Frage 6 von 33

Diminishing marginal utility means that

Wähle eine der folgenden:

Erklärung

Frage 7 von 33

The marginal utility of a second copy of today's New York Times is

Wähle eine der folgenden:

Erklärung

Frage 8 von 33

Which of the following sayings describes the concept of diminishing marginal utility?

Wähle eine der folgenden:

Erklärung

Frage 9 von 33

the reason you don't drink 5 cups of coffee at breakfast is that

Wähle eine der folgenden:

Erklärung

Frage 10 von 33

Joe the economist tells his wife, Jane, that he wants to spend a weekend fishing with friends. She replies "you don't love me anymore". Just before she hits Joe with a croquet mallet, Joe explains to her that she has confused the concepts of

Wähle eine der folgenden:

Erklärung

Frage 11 von 33

In exhibit 6-12, consumer surplus at a price of $2 is the difference between what consumers are willing to

Wähle eine der folgenden:

Erklärung

Frage 12 von 33

Which area in exhibit 6-13 represents consumer surplus at market equilibrium?

Wähle eine der folgenden:

Erklärung

Frage 13 von 33

Suppose I am willing to pay $300 for roller blades and I purchase them on sale for $200. My consumer surplus is

Wähle eine der folgenden:

Erklärung

Frage 14 von 33

The consumers' surplus derived from the last unit of a good purchased

Wähle eine der folgenden:

Erklärung

Frage 15 von 33

The market demand curve is

Wähle eine der folgenden:

Erklärung

Frage 16 von 33

A measure of consumer surplus in any market is

Wähle eine der folgenden:

Erklärung

Frage 17 von 33

Consumers derive consumer surplus whenever

Wähle eine der folgenden:

Erklärung

Frage 18 von 33

For any given price, the more elastic the demand for a product is, the greater will be the consumer surplus

Wähle eins der folgenden:

Erklärung

Frage 19 von 33

When a service, such as medical care, is provided free of charge,

Wähle eine der folgenden:

Erklärung

Frage 20 von 33

Refer to exhibit 6-17. If D, D', and D" represents the demand curves for the only 3 consumers in the market, then the market quantity demanded at a price of $15 will be