quiz helpful for midterms and final (10)

quiz helpful for midterms and final (10) - Principles of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Page 1 Principles of Economics EC 1 UCLA Dr. Bresnock Quiz 7 Choose the best answer to each question and mark it on your answer form. 1. When total utility is at a maximum, marginal utility is: A) rising. B) at its average value. C) at a maximum. D) zero. A ) B ) C ) D ) 2. Tom is trying to decide how to allocate his $50 budget for CD purchases and DVD rentals when the price of a CD is $10 and the price of a DVD rental is $5. Which of the following combinations of CD purchases and DVD rentals is outside Tom's budget? (Tom cannot afford this combination.) A) 5 CDs and 10 DVDs B) 5 CDs and 0 DVDs C) 0 CDs and 5 DVDs D) 2 CDs and 5 DVDs A ) B ) C ) D ) 3. If the price of a good falls and the consumer decides to buy more of the good solely because it is relatively less expensive, this describes the: A) income effect. B) substitution effect. C) consumer surplus effect. D) marginal-maximizing rule. A ) B ) C ) D )
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Page 2 4. Which of the following is(are) true? A) A budget constraint limits what a poor consumer can spend, but there is no similar constraint on rich people. B) Utility maximization requires seeking the greatest utility from a given budget. C) In consumer choice theory, we assume all goods and services are inferior.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 02/26/2011.

Page1 / 6

quiz helpful for midterms and final (10) - Principles of...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online