9/16/12

Assignment Print View

Score: 140 out of 150 points (93.33%)

1.

awar d:

10 out of
10.00 points
Economic explanations of consumer behavior take into consideration
Ego gratification.
Lack of self­confidence.
Social status.
Prices and income.
Prices and income are just as relevant to consumption decisions as are more basic desires and preferences.

Multiple Choice

2.

Learning Objective: 19­01 Why demand curves are downward sloping.

awar d:

10 out of
10.00 points
Which of the following is not a determinant of demand?
Desire for the good.
Income of the consumer.
The cost of the factor inputs.
The price of other goods.
An individual's demand for a specific product is determined by tastes, income, expectations (for income, prices, tastes), and the availability and price of other goods. The cost of the factor inputs is a determinant of supply.
Multiple Choice

3.

Learning Objective: 19­01 Why demand curves are downward sloping.

awar d:

10 out of
10.00 points
Graphically, as a consumer buys more of a good, the marginal utility line will
Increase as more goods are consumed.
Increase steadily and then decline.
Continuously decline if diminishing returns are present.
Follow the same shape as the total utility line.
Total utility increases as a consumer enjoys more units of a product. Due to the law of diminishing marginal utility, marginal utility declines.

Multiple Choice

4.

Learning Objective: 19­01 Why demand curves are downward sloping.

awar d:

10 out of
10.00 points
When economists refer to the determinants of demand, they are referring to factors that
Cause a movement down a demand curve.
Cause the demand curve to shift left or right.
Influence producer behavior.
Cause a movement up one demand curve.

A movement up or down a demand curve is caused by a change in price. The determinants of demand, such as a change in income, tastes, or the price and availability of other goods, cause the demand curve to shift right or left.
Multiple Choice

ezto.mhecloud.mcgraw‑hill.com/hm.tpx?todo=printview

Learning Objective: 19­01 Why demand curves are downward sloping.

1/6

9/16/12

5.

Assignment Print View

awar d:

10 out of
10.00 points
If a product has a high marginal utility, then
Consumers will not purchase any more of the good.
The demand curve will be downward­sloping.
A consumer is willing to pay a high price for it.
Consumers will also have a low total utility.
One's desire for a good, or taste, will impact the utility or satisfaction received from the consumption of that good.

Multiple Choice

6.

Learning Objective: 19­01 Why demand curves are downward sloping.

awar d:

10 out of
10.00 points
The law of diminishing marginal utility suggests that
People are willing to buy additional quantities of a good only if its price falls.
People will substitute lower­priced goods for more expensive goods, ceteris paribus.
Price and quantity demanded are directly related.
As marginal utility decreases, the willingness to pay increases.
The more marginal utility a product delivers, the more a consumer will be willing to pay for it. Marginal utility diminishes as increasing quantities of a product are consumed; therefore consumers are willing to pay progressively less for additional quantities of a product.
Multiple Choice

7.

Learning Objective: 19­01 Why demand curves are downward sloping.

awar d:

10 out of
10.00 points

Refer to Table 19.1. What is Josh's total utility from consuming the third slice of pizza?
20 utils.
54 utils.
5 utils.
0 utils.
Total utility is the sum of all of the marginal utilities. If you add the 15 marginal utility units that Josh received from consuming the third slice of pizza to the total utility units of 39 he enjoyed from the second slice, 39 + 15 = 54.

Multiple Choice

ezto.mhecloud.mcgraw‑hill.com/hm.tpx?todo=printview

Learning Objective: 19­01 Why demand curves are downward sloping.

2/6

9/16/12

8.

Assignment Print View

awar d:

10 out of
10.00 points

Refer to Table 19.1. The marginal utility Josh enjoys from the fourth slice of pizza is
20 utils.
54 utils.
5 utils.
0 utils.
Marginal utility is the change in total utility as a buyer consumers more units of a good. The change in marginal utility from the third to the fourth slice of pizza is 59 ­ 54 =
5.
Multiple Choice

9.

Learning Objective: 19­01 Why demand curves are downward sloping.

awar d:

10 out of
10.00 points
As more satisfaction is achieved from consuming a good with diminishing marginal utility, then total utility
Increases at a decreasing rate.
Decreases as long as marginal utility is negative.
Decreases as long as marginal utility is positive.
Is negative as long as marginal utility is decreasing.
As long as marginal utility is positive, total utility must be increasing from consuming a good; but total utility increases by smaller and smaller increments when diminishing marginal utility exists.

Multiple Choice

10.

Learning Objective: 19­01 Why demand curves are downward sloping.

awar d:

10 out of
10.00 points
Consumer surplus measures
The difference between the maximum price a consumer is willing to pay and the price actually paid.
The difference between the minimum price a consumer is willing to pay and the price actually paid.
The difference between the amounts of a good a consumer is willing to pay, and how much of the good is available for sale.
The sum of all of the marginal utilities for that good
Consumer surplus is the difference between what you are willing to pay and the actual equilibrium price.
Multiple Choice

ezto.mhecloud.mcgraw‑hill.com/hm.tpx?todo=printview

Learning Objective: 19­02 The nature and source of consumer surplus.

3/6

9/16/12

11.

Assignment Print View

awar d:

10 out of
10.00 points
Price discrimination occurs when
Minorities pay a higher price for a product than everyone else.
Sellers charge a higher price than is reasonable.
Sellers charge two separate prices for the same product to two different groups.
Sellers charge one price to all consumers but not wholesalers.
Price discrimination occurs when individuals are charged different prices for the same good.

Multiple Choice

12.

Learning Objective: 19­03 The meaning and use of price discrimination.

awar d:

10 out of
10.00 points
Which of these examples is an example of price discrimination?
Goods are marked down on sale.
Wholesale prices differ from retail prices.
Seniors pay one price at the movie theater and adults pay more.
Cereal manufacturers put discount coupons inside their cereal boxes.
If seniors pay one price at the movie theater, and adults pay a different price, this is an example of price discrimination. Price discrimination occurs when individuals pay different prices for the same good.
Multiple Choice

ezto.mhecloud.mcgraw‑hill.com/hm.tpx?todo=printview

Learning Objective: 19­03 The meaning and use of price discrimination.

4/6

9/16/12

13.

Assignment Print View

awar d:

10 out of
10.00 points
Complete Table 19.3 below. Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.

In Table 19.3 the marginal utility per dollar of the second cola is
10.
6.
4.
12.
The marginal utility per dollar is equal to the marginal utility divided by the price of the product. The marginal utility of the second cola is 32, so the marginal utility per dollar is 32/8=4.

Multiple Choice

ezto.mhecloud.mcgraw‑hill.com/hm.tpx?todo=printview

Learning Objective: 19­04 How consumers maximize utility. 5/6

9/16/12

14.

Assignment Print View

awar d:

0 out of
10.00 points
Complete Table 19.3 below. Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.

Refer to Table 19.3. Suppose Michael has $28 to spend on cola and pretzels. What combination should he purchase in order to maximize his utility?
Three colas and four pretzels.
One cola and five pretzels.
Three colas and one pretzel.

→

Two colas and three pretzels.

To maximize utility, the consumer should choose the goods that deliver the most marginal utility per dollar. The first pretzel has a MU per dollar of 7.5, the second pretzel and first cola have a MU per dollar of 5, and the third pretzel and the second coke have a MU per dollar of 4. Once Michael buys three pretzels and two colas, he will have spent his $28 and maximized his utility.

Multiple Choice

15.

Learning Objective: 19­04 How consumers maximize utility. awar d:

10 out of
10.00 points
When choosing among products, consumers look at
The marginal utility per dollar and their budget constraint.
The total utility that will be gained at the end of all consumption.
Only their budget.
The marginal utility of the good.

Rational consumers will want to get the most from their purchases given their limited income. That means they will purchase the items with the highest marginal utility per dollar and that are affordable, given their budget.

Multiple Choice

ezto.mhecloud.mcgraw‑hill.com/hm.tpx?todo=printview

Learning Objective: 19­02 The nature and source of consumer surplus.

6/6