Chapter 04 - Consumer Behavior

Chapter 04 - Consumer Behavior - Test Bank Microeconomics:...

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Page 1 of 18 Test Bank Microeconomics: Theory and Policy Chapter 04: Consumer Behavior B. Modjtahedi Question 1 What is “marginal willingness to pay”? A. The amount of money a consumer is willing to pay for the next unit of a product. B. The amount of money a consumer is able to pay for the next unit of a product. C. The amount of money a consumer is willing and able to pay for the next unit of a product. D. All of the above. E. None of the above. Question 2 Which of the following statements is NOT necessarily true? A. In general and all else the same, consumer surplus will increase if the price of a product falls. B. In general and all else the same, if the price of a product equals a consumer’s marginal willingness to pay for that product, the consumer will be no better off than before if she buys it. C. In general and all else the same, a consumer’s total expenditure on a product will increase if the price of that product increases. D. All of the above. E. None of the above. Question 3 Which of the following statements is true? A. A consumer’s demand function for a product is the same as her marginal willingness-to- pay function for that product. B. A consumer’s demand function for a product is the same as her total willingness-to-pay function for that product. C. A consumer’s demand function for a product is the same as her marginal cost of buying that product. D. All of the above. E. None of the above. Question 4 Economists generally assume that A. A typical consumer’s marginal willingness to pay for a product increases as the consumer consumes more of the product. B. A typical consumer’s marginal willingness to pay for a product decreases as the consumer consumes more of the product. C. A typical consumer’s total expenditure on a product decreases as the consumer consumes more of the product. D. A typical consumer’s total willingness to pay for a product decreases as the consumer consumes more of the product. E. None of the above.
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Page 2 of 18 Question 5 The figure above shows a consumer’s demand function for a product. How many units is the consumer willing to buy when the price equals $25? A. 2 units B. 3 units C. 4 units D. 5 units E. None of the above. Question 6 The figure above shows a consumer’s demand function for a product. What is the marginal willingness to pay of this consumer for the 4 th unit? A. $50 B. $40 C. $30 D. $20 E. None of the above. Question 7 The figure above shows a consumer’s demand function for a product. What is the total willingness to pay of this consumer for four units? (Use geometric formulas to calculate) A. $150 B. $160 C. $170 D. $180 E. None of the above. $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55 0 1 23 4 5 6 7 8 9 10 11 q P
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Page 3 of 18 Question 8 The figure above shows a consumer’s demand function for a product. What will be the consumer’s total expenditure on the product if the price equals $30? (Use geometric formulas to calculate) A. $90 B. $100 C. $110 D. $120 E. None of the above.
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This note was uploaded on 11/08/2010 for the course ECN ECN 001A taught by Professor Scottcarrell during the Spring '10 term at UC Davis.

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Chapter 04 - Consumer Behavior - Test Bank Microeconomics:...

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