Started: Title: Submitted: Time spent: Total score: 1.
Quiz 8 August 3, 2011 9:44 PM August 3, 2011 10:29 PM 00:44:59 85/100 = 85% Total score adjusted by 0.0 Maximum possible score: 100 Question 001 Billy has a $20 budget to spend on yogurt and cereal. Yogurt cost $2 each and cereal costs $4 each. Which of the following could be a utilitymaximizing combination of yogurt and cereal?
Student Response A. 4 yogurts and 4 cereals. B. 10 yogurts and 5 cereals. C. 5 yogurts and 3 cereals. D. 2 yogurts and 4 cereals. E. 1 yogurt and 4 cereals. Score:
Value
Correct Answer
Feedback
100%
5/5
2.
Question 002 Billy has a $20 budget to spend on yogurt and cereal. Yogurt cost $2 each and cereal costs $4 each. Suppose that the quantity of yogurt is on the vertical axis and the quantity of cereal is on the horizontal axis. If the price of yogurt increases, which of the following is true?
Student Response A. i and ii B. i and iii C. ii and iii D. i, ii, and iii
Value
Correct Answer
Feedback
100%
Student Response E. Only i Score:
Value
Correct Answer
Feedback
5/5
3.
Question 002 An indifference curve is a line that shows
Student Response
Value
Correct Answer
Feedback
A. combinations of goods among 100% which a consumer is indifferent. B. different combinations of goods a consumer is able to buy. C. the indifference of consumers for the budget constraint. D. different combinations of goods a consumer is able to buy and the indifference of consumers for the budget constraint. E. combinations of goods among which a consumer is indifferent and the indifference of consumers for the budget constraint. Score: 5/5
4.
Question 003
The word "utility" means
Student Response A. benefit or satisfaction. B. power generation. C. demand. D. goal. E. quantity demanded. Score:
Value 100%
Correct Answer
Feedback
5/5
5.
Question 004 Why does the paradox of value between diamonds and water arise?
Student Response A. because water has a low price and a low total utility, while diamonds have a high price and a high total utility B. because water has a low price and a low marginal utility, while diamonds have a high price and a high marginal utility C. because necessities like water are higher priced than luxuries like diamonds D. because diamonds have a higher value to people even
Value
Correct Answer
Feedback
100%
Student Response though water is essential to life E. because water has a low price and a low total utility, while diamonds have a high price but also a low total utility Score:
Value
Correct Answer
Feedback
5/5
6.
Question 006 The additional satisfaction from consuming one more unit of a product is called
Student Response A. marginal return. B. marginal cost. C. marginal utility. D. total utility. E. marginal demand. Score:
Value
Correct Answer
Feedback
100%
5/5
7.
Question 008 A budget line shows
Student Response A. what consumption choices a person will make.
Value
Correct Answer
Feedback
Student Response B. a person's consumption possibilities. C. the total utility of possible consumption combinations. D. what consumption choices a person will make and the total utility of possible consumption combinations. E. what consumption choices a person will make and a person's consumption possibilities. Score:
Value 100%
Correct Answer
Feedback
5/5
8.
Question 009 In order to draw a budget line for a consumer, we need to know
Student Response A. only the consumer's budget. B. only the prices of the goods the consumer demands.
Value
Correct Answer
Feedback
C. both the consumer's budget and 100% the prices of the goods the consumer demands. D. the consumer's budget, the prices of the goods the consumer demands, and the utilities of the goods the consumer buys.
Student Response E. the utilities of the goods the consumer buys. Score:
Value
Correct Answer
Feedback
5/5
9.
Question 010 The marginal rate of substitution is defined as the rate at which
Student Response A. a person will give up more of one good to get another. B. prices fall. C. a person will purchase more of every item they desire. D. a person will purchase less of every item they desire in response to a price increase. E. a person will substitute an increased budget for higher prices of the goods the person consumes. Score:
Value 100%
Correct Answer
Feedback
5/5
10.
Question 015
The table above gives Matt's utility from consuming slices of pizza. His marginal utility from the 3rd slice is
Student Response A. 27 units. B. 5 units. C. 9 units. D. 11 units E. None of these answers is correct. Score:
Value 100%
Correct Answer
Feedback
5/5
11.
Question 017 A point where the budget line is just touching an indifference curve at one point is
Student Response A. the least affordable point. B. the best affordable point. C. on the lowest attainable indifference curve. D. the best affordable point and on the lowest attainable indifference curve. E. the least affordable point and on the lowest attainable indifference curve. Score:
Value 100%
Correct Answer
Feedback
5/5
12.
Question 018 At the point where the budget line is just touching an indifference curve at one Response point,
Student A. the slope of the budget line is equal to the slope of the indifference curve. B. the marginal rate of substitution equals the relative price. C. the consumer can change his or her consumption and can move to a higher indifference curve. D. the slope of the budget line is equal to the slope of the indifference curve and the marginal rate of substitution equals the relative price. E. the marginal rate of substitution equals the relative price and the consumer can change his or her consumption and can move to a higher indifference curve. Score:
Value
Correct Answer
Feedback
0/5
13.
Question 020 Celine will maximize her utility if she allocates all of her available budget and then consumes so that the
Student Response A. marginal utility of good Xis
Value
Correct Answer
Feedback
Student Response
Value
Correct Answer
Feedback
B. marginal utility per dollar spent 100% on good X is equal to marginal utility per dollar spent on good Y. C. total utility of good X is equal to the total utility of good Y. D. total utility per dollar spent on good Y is equal to total utility per dollar spent on good X. E. total utility per dollar spent on good X is equal to the marginal utility per dollar spent on good X and the total utility per dollar spent on good Y is equal to the marginal utility per dollar spent on good Y. Score: 5/5
14.
Question 026
Chase has a budget of $14 which he must allocate between steak and cranberry juice. The table gives his marginal utility and the marginal utility per dollar for both of those goods. The price of steak is $10 per serving and the price of cranberry juice is $2 per serving. To maximize his utility, Chase should buy
Student Response A. 2 servings of steak and 2 servings of cranberry juice. B. 2 servings of steak and 4
Value
Correct Answer
Feedback
Student Response servings of cranberry juice. C. 1 serving of steak because this has the highest marginal utility. D. 1 serving of steak and 2 servings of cranberry juice. E. 4 servings of steak and 4 servings of cranberry juice. Score:
Value
Correct Answer
Feedback
100%
5/5
15.
Question 027 Gertrude has a $15 budget to spend on soda and crackers. Soda costs $1 per bottle and crackers cost 50 each. If the price of soda increases to $2 per bottle, the ____ rotates inward and there is a movement along the ____.
Student Response
Value
Correct Answer
Feedback
A. budget line; demand curve for 0% crackers B. demand curve; indifference curve for crackers C. budget line; demand curve for soda D. demand curve; indifference curve for soda E. indifference curves; demand curve for soda Score: 0/5
16.
Question 028 Sarah buys milk and ground beef. When the price of milk changes, the
Student Response A. slope of Sarah's budget line changes. B. slope of Sarah's budget line remains the same. C. tradeoff between milk and ground beef changes.
Value
Correct Answer
Feedback
100% D. slope of Sarah's budget line changes and tradeoff between milk and ground beef changes. E. slope of Sarah's budget line remains the same and tradeoff between milk and ground beef changes. Score: 5/5
17.
Question 030 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
Student Response A. buy more cream and fewer strawberries. B. buy less cream and more strawberries. C. buy more cream and more
Value
Correct Answer
Feedback
100%
Student Response strawberries. D. buy less cream and fewer strawberries. E. change nothing because Juan is maximizing his utility now. Score:
Value
Correct Answer
Feedback
5/5
18.
Question 031 Reb buys fishing lures and steaks. If his budget does not change and the price of a fishing lure decreases, the maximum number of fishing lures he can purchase ____ and the maximum number of steaks he can purchase ____.
Student Response A. increases; increases B. increases; decreases C. increases; does not change D. decreases; increases E. does not change; does not change Score:
Value
Correct Answer
Feedback
0/5
19.
Question 032 When making a decision between purchasing soda or pizza, a consumer compares
Student Response A. only the marginal utility
Value
Correct Answer
Feedback
Student Response B. only the prices of each item. C. marginal utility per-dollarconsumed for each item.
Value
Correct Answer
Feedback
D. marginal utility per dollar spent 100% for each item. E. the price of each item to his or her total utility from the item. Score: 5/5
20.
Question 033 Consider an indifference curve for sodas and pizza, drawn in a figure with sodas measured along the horizontal axis. Moving downward along the indifference curve, the
Student Response A. marginal utility per dollar for sodas must increase. B. marginal utility per dollar for pizza must increase. C. consumer remains indifferent among the different combinations of soda and pizza. D. the level of total utility must change. E. marginal rate of substitution is constant. Score: 5/5
Value
Correct Answer
Feedback
100%