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Mylie's total utility from singing the same song over and over is as follows. Use the data to calculate her marginal utility for each repetition. Instructions: If you are entering any negative numbers, be sure to include a negative sign (-) in front of those numbers.
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Repetitions 1 2 3 4 5 6

Total Utility 50 90 70 20 -50 -200

Marginal Utility n/r n/r n/r n/r n/r n/r

Once Mylies total utility begins to decrease, does each additional singing of the song hurt more than the previous one or less than the previous one?

More than the previous one.

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You are choosing between two goods, X and Y, and your marginal utility from each is as

shown below.

Units of X 1 2 3 4 5 6

MU 20 16 12 8 6 4

Units of Y 1 2 3 4 5 6

MU 16 14 12 10 8 6

Instructions: Enter only whole numbers for your numeric answers. If your income is $18.00 and the prices of X and Y are $4.00 and $2.00, respectively, what quantities of each will you purchase to maximize utility? Units of X: n/r Units of Y: n/r What total utility will you realize? n/r Assume that, other things remaining unchanged, the price of X falls to $2.00. What quantities of X and Y will you now purchase? Units of X: n/r Units of Y: n/r Using the two prices and quantities for X, derive a demand schedule (a table showing prices and quantities demanded) for X. Instructions: Start with the highest price first.

Price $n/r $n/r

Quantity Demanded n/r n/r

3.
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The ability of a good or service to satisfy wants is called: utility maximization. opportunity cost. revenue potential.

utility.

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The law of diminishing marginal utility states that: total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed. beyond some point additional units of a product will yield less and less extra satisfaction to a consumer. price must be lowered to induce firms to supply more of a product. it will take larger and larger amounts of resources beyond some point to produce successive units of a product.

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The first Pepsi yields Craig 18 units of utility and the second yields him an additional 12 units of utility. His total utility from three Pepsis is 38 units of utility. The marginal utility of the third Pepsi is: 26 units of utility. 6 units of utility. 8 units of utility.

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Marginal utility is the: sensitivity of consumer purchases of a good to changes in the price of that good. change in total utility obtained by consuming one more unit of a good. change in total utility obtained by consuming another unit of a good divided by the change in the price of that good. total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed.

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Total utility may be determined by: multiplying the marginal utility of the last unit consumed by the number of units consumed. summing the marginal utilities of each unit consumed. multiplying the marginal utility of the last unit consumed by product price. multiplying the marginal utility of the first unit consumed by the number of units consumed.

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Refer to the above data. The value for Y is: 25. 30. 40. 45. Learning Objective: 06-01 Define and explain the relationship between total utility; marginal utility; and the law of diminishing marginal utility.

Multiple Choice

Difficulty: 2 Medium

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Refer to the above data. The value for X is: 15. 5. 55. 10. Learning Objective: 06-01 Define and explain the relationship between total utility; marginal utility; and the law of diminishing marginal utility.

Multiple Choice

Difficulty: 2 Medium

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Refer to the above data. The value for W is: 15. 20. 25. 30. Learning Objective: 06-01 Define and explain the relationship between total utility; marginal utility; and the law of diminishing marginal utility.

Multiple Choice

Difficulty: 2 Medium

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Refer to the above data. The value for Z is: -5. +5. -10.

zero.

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A consumer is maximizing her utility with a particular money income when: the total utility derived from each product consumed is the same. MUa/Pa = MUb/Pb = MUc/Pc = ... = MUn/Pn. MUa = MUb = MUc = ... = MUn. Pa = Pb = Pc = ... = Pn.

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Ben is exhausting his money income consuming products A and B in such quantities that MU a/Pa= 5 and MUb/Pb= 8. Ben should purchase: more of A and less of B. more of B and less of A. more of both A and B. less of both A and B.

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The marginal utility of the last unit of apples consumed is 12 and the marginal utility of the last unit of bananas consumed is 8. What set of prices for apples and bananas, respectively, would be consistent with consumer equilibrium? $4 and $6 $6 and $4 $8 and $12 $16 and $9

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How did Apple overcome consumers' diminishing marginal utility for iPods? Apple lowered the price of iPods so that previous buyers would purchase another unit. Apple introduced new features to entice previous buyers to purchase new models. Apple ignored the problem and focused solely on attracting new buyers. Apple was unable to overcome the problem and has faced steadily declining sales.

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Why do people tend to eat more at all-you-can-eat buffet restaurants than at restaurants where each item is purchased separately? Once the all-you-can-eat meal is purchased, consumers view additional trips back to the buffet as having a price of zero. MU/P is greater at all-you-can-eat restaurants. People who eat at all-you-can-eat restaurants do not experience diminishing marginal utility. Food at all-you-can-eat restaurants tends to have fewer calories, so consumers feel the need to consume a greater volume of food.

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Josh will receive a salary of $300,000 next year. According to prospect theory: Josh will be happy with that amount regardless of what he has made in the past. Josh will only be happy with that salary if everyone else around him makes less than he does. Josh will only be happy with that salary if his cost of living has not increased. Josh's satisfaction with that salary depends on how much he made in the past.

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Why do credit card companies typically require small minimum payment amounts on their customers' monthly credit card statements? Credit card companies are concerned that their customers will be put in financial distress if required to make higher payments. Credit card companies want to promote faster repayment, and customers will be encouraged to pay more each month if they're able to pay well beyond the minimum. Credit card companies want to increase profits by promoting slower repayment, and actual customer payments will be anchored by the smaller payment requirements. Credit card companies actually charge the highest minimum payment they are allowed by law to charge.

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Because of "mental accounting:" people are better able to process price changes than changes in product sizes. people tend to be less risk averse. people pay too little on their monthly credit card bills. people isolate purchases and sometimes make irrational decisions.

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(Consider This) The hedonic treadmill refers to a phenomenon where: people can't improve their economic well-being because prices increase as fast as wages. people can't get out of debt because credit card companies use anchoring to get consumers to carry large balances on their accounts. increasing our level of consumption doesn't make us any happier in the long term. feelings of loss offset our feelings of gain, leaving us no happier in the long term.