QUESTION 1 If Megan wants to maximize her utility, then she should allocate her

Question

QUESTION 1

If Megan wants to maximize her utility, then she should allocate her satisfaction to maximize her income.

True

False

1 points   

QUESTION 2

Kevin's marginal utility from the 1st taco is 15, his marginal utility from the 2nd taco is 12, and his marginal utility from the 3rd taco is 8. Based on this information, we can conclude that he should eat just one taco.

True

False

1 points   

QUESTION 3

Sean receives 40 utils from consuming a burger that costs $4 and 30 utils from consuming French fries that costs $2. Based on this information, we can conclude that he is maximizing his utility.

True

False

1 points   

QUESTION 4

Tiffany received boxes of green-cream-filled chocolates from several secret admirers on St. Patrick’s Day. So as not to offend any of them, she decided to eat all of the chocolate. She really enjoyed the first box of chocolates, the second box of chocolates was okay, but eating the third box made her sick. This experience illustrates which concept?

Marginal cost pricing

Comparative advantage

Free riding principle

Law of diminishing marginal utility

1 points   

QUESTION 5

Tim’s marginal utility from playing air hockey is 6 after playing 5 games. His marginal utility for laser tag is 15 after 3 games. If air hockey costs $2 per game and laser tag cost $3 per game, then to maximize his utility he should …

play laser tag more and play air hockey less.

play laser tag less and play air hockey more.

do more of both.

just go home.

1 points   

QUESTION 6

Jessica utilizes rational economic thinking and purchases 5 units of good M and 3 units of good N. Suppose the price of N increases. One can predict that she will …

continue making the same purchases of M and N.

reduce the purchases of both M and N.

increase the purchases of both M and N.

increase purchases of M and reduce purchases of N.  

reduce purchases of M and increase purchases of N.

1 points   

QUESTION 7

Caitlin receives 15 utils from drinking water and 6 utils from watching her favorite television show. Which of the following statements is most likely true?

A. All else constant, it appears she would prefer to drink a glass of water than watch additional television.

B. Because tap water has no price, its utility value is zero and thus she is irrational.

She should never watch television.

Her preferences are wrong.

QUESTION 8

Consider the table. If the price of B is $4 for each unit purchased, then what is the marginal utility per dollar of the second unit of B purchased?

QUESTION 9

Consider the table. Suppose Mitchell has $20 to spend, the price of A is $4 and the price of B is $4. If he is rational and wants to maximize utility, then how many units of A will he purchase?

1 of A

2 of A

3 of A

4 of A

1 points   

QUESTION 10

What will give you greater utility? One additional hour of a microeconomics lecture or $1000 in cash?

One additional hour of a microeconomics lecture.

$1000 in cash.

Marginal cost pricing

Comparative advantage

Free riding principle

Law of diminishing marginal utility

Explanation / Answer

True

False

False

Law of diminishing marginal utility

play laser tag more and play air hockey less

increase purchases of M and reduce purchases of N

All else constant, it appears she would prefer to drink a glass of water than watch additional television.

Diagram missing

Data missing

One additional hour of a microeconomics lecture

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