An increase in the real income of a consumer is one result of an increase in the price of a product that the consumer is buying.
TrueFalse
A consumer is making purchases of products Alpha and Beta such that the marginal utility of product Alpha is 30 and the marginal utility of product Beta is 40. The price of product Alpha is $5 and the price of product Beta is $10. The utility-maximizing rule suggests that this consumer should:
A. Increase in consumption of product Beta and decrease consumption of product Alpha.B.Increase consumption of product Beta and increase consumption of product AlphaC.Increase consumption of product Alpha and decrease consumption of product BetaD.Make no change in the consumption of Alpha or Beta
The marginal rate of substitution of beef for chicken is the:
A. Number of units of chicken the consumer is prepared to give up to obtain one more unit of beef.B. Number of units of beef the consumer is prepared to give up as income fallsC. Number of units of beef the consumer must sacrifice to obtain one more unit of chickenD. Rate at which units of beef may be exchanged for units of chicken
The increase in demand for iPad tablet computers can be explained by:
A. An increase in the technology used to produce iPads, making the supply of iPads increaseB. An increase in the price of laptop computers, making their MU/P decreaseC. The enhanced versatility and storage capacity of iPads, making their MU/P increaseD. An increase in the income of buyers, making the demand for iPads increase.
If total utility increases as the consumption of a good increases, then the marginal utility must be increasing also.
TrueFalse

Question

An increase in the real income of a consumer is one result of an increase in the price of a product that the consumer is buying.
TrueFalse
A consumer is making purchases of products Alpha and Beta such that the marginal utility of product Alpha is 30 and the marginal utility of product Beta is 40. The price of product Alpha is $5 and the price of product Beta is $10. The utility-maximizing rule suggests that this consumer should:
A. Increase in consumption of product Beta and decrease consumption of product Alpha.B.Increase consumption of product Beta and increase consumption of product AlphaC.Increase consumption of product Alpha and decrease consumption of product BetaD.Make no change in the consumption of Alpha or Beta
The marginal rate of substitution of beef for chicken is the:
A. Number of units of chicken the consumer is prepared to give up to obtain one more unit of beef.B. Number of units of beef the consumer is prepared to give up as income fallsC. Number of units of beef the consumer must sacrifice to obtain one more unit of chickenD. Rate at which units of beef may be exchanged for units of chicken
The increase in demand for iPad tablet computers can be explained by:
A. An increase in the technology used to produce iPads, making the supply of iPads increaseB. An increase in the price of laptop computers, making their MU/P decreaseC. The enhanced versatility and storage capacity of iPads, making their MU/P increaseD. An increase in the income of buyers, making the demand for iPads increase.
If total utility increases as the consumption of a good increases, then the marginal utility must be increasing also.
TrueFalse

Product X		Product Y		Product Z
Quantity	Utility	Marginal Utility per $	Quantity	Utility	Marginal Utility per $	Quantity	Utility	Marginal Utility per $
1	42	_____	1	14	_____	1	32	_____
2	82	_____	2	26	_____	2	60	_____
3	118		3	36	_____	3	84	_____
4	148	_____	4	44	_____	4	100	_____
5	170	_____	5	50	_____	5	110	_____
6	182	_____	6	54	_____	6	116	_____
7	182	_____	7	56.4	_____	7	120	_____

1.	_____	The satisfaction or benefit that consumers receive from consuming goods or services.
2.	________________ _	A particular combination of specific quantities of goods or services
3.	________________ _	Consumers can rank all conceivable bundles of goods or services
4.	_____	If A is preferred to B, and B is preferred to C, then A is always preferred to C.
5.	_____	Equation showing a consumerâs perception of the total utility forthcoming from consuming each bundle of goods and services.
6.	_____	A set of consumption bundles each and every one of which provides a consumer with exactly the same level of total utility.
7.	_____	The number of units of Y that must be given up for total utility to remain the same when one more unit of X is consumed.
8.	_____	The addition to total utility attributable to consuming one more unit of a good, holding the consumption of all other goods constant.
9.	_____	The line showing all bundles of goods that can be purchased at given prices if the entire income is spent.
10.	_____	The change in the consumption of a good that would result if the consumer remained on the original indifference curve after the price of the good changes.
11.	_____	The change in consumption of goods results strictly from the change in purchasing power after the price of a good changes.
12.	________________ _	The sum of the substitution and income effects.
13.	_____	A good for which quantity demanded varies directly with price, causing an upward sloping demand curve.
14.	_____	A list of prices and the corresponding quantity consumers are willing and able to purchase at each price.

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