Navigation » List of Schools » Glendale Community College » Economics » Econ 101 – Microeconomics » Summer 2021 » iVAT Chapter 19
Below are the questions for the exam with the choices of answers:
Question #1
A Due to the fact that individuals derive pleasure from consuming services.
B Due to the fact that extrinsic utility can create innate pleasure, which is innately stronger than intrinsic utility.
C Due to the fact that individuals derive pleasure from having other people know or view what they are consuming.
D Due to the fact that individuals derive innate pleasure from consuming a good.
Question #2
A Consuming a burger has the lowest opportunity cost because if you consume a burger you are foregoing the consumption of a hot dog, which has a higher marginal utility per dollar compared to a burger.
B Consuming a burger has the lowest opportunity cost because you are foregoing the least in terms of dollars spent on consumption.
C Consuming a burger has the lowest opportunity cost because if you consume a burger you are foregoing the consumption of a hot dog, which has a lower marginal utility per dollar compared to a burger.
D Consuming a hot dog has the lowest opportunity cost because if you consume a hot dog you are foregoing the consumption of a burger, which has a higher marginal utility per dollar compared to a hot dog.
Question #3
A Reducing people’s substitution constraint.
B Substituting money with consumption.
C Compensating people with money as the price of a good increases.
D Compensating people with money as the price of a good decreases.
Question #4
A As the price of a good increases, individual’s real incomes increase, or the amount of goods that they can purchase with their budget increases.
B None of the available answers.
C As the price of a good declines, an individual’s real income declines, or the amount of that good that they can purchase with their budget declines.
D As the price of a good varies, an individual’s real income changes, or the amount of that good that they can purchase with their budget varies.
Question #5
A An increase in the consumption of Red Bull will decrease the marginal utility of Red Bull, which will equate the two marginal utility to price ratios.
B An increase in the consumption of coffee will reduce the marginal utility of coffee, which will equate the two marginal utility to price ratios.
C An increase in the consumption of Red Bull will increase the marginal utility of Red Bull, which will equate the two marginal utility to price ratios.
D A decrease in the consumption of coffee will increase the marginal utility of coffee, which will equate the two marginal utility to price ratios.
Question #6
A Her total utility per dollar spent is the same for all goods.
B Her marginal utility per dollar spent is the same for all goods.
C Her total utility for each good is identical to its price.
D Her total marginal utility for each good is identical to its price.
E
F The marginal utility is the same for each item purchased.
Question #7
A Surfing.
B Snowboarding.
C Neither.
D The individual is indifferent.
Question #8
A Consuming more Red Bulls and fewer coffees.
B Consuming less of both goods.
C Consuming more cups of coffee and fewer Red Bulls.
D Not changing the combination of Red Bulls and coffees consumed.
E Switching to water because it is healthier for you.
Question #9
A Maximize disutility.
B Maximize marginal utility.
C Maximize consumption.
D Consume until marginal utility begins to fall.
E Maximize total utility.
Question #10
A Is of the highest quality.
B Gives them the greatest additional satisfaction.
C Costs the least, but is still high quality.
D Gives them the greatest additional satisfaction per dollar spent.
E Costs the least.
Question #11
A Total utility is decreasing.
B Marginal utility is negative.
C Marginal utility is positive.
D Total utility is increasing and at an increasing rate.
Question #12
A Marginal utility is increasing.
B Total Utility is decreasing.
C Marginal utility has turned negative.
D Marginal utility is decreasing.
Question #13
A Marginal utility of the first burrito is 15
B Marginal utility of the second burrito is 15
C Total utility of two burritos is 15
D Total utility of the two burritos is 10.
Question #14
A All of the available answers
B Positive marginal utility
C Disequilibrium
D Total utility
E Negative marginal utility
Question #15
A Satisfaction one gets from the consumption of an additional unit of a product times its price
B Total satisfaction one gets from one’s consumption of a product
C Maximum satisfaction one gets from consumption
D
E Additional satisfaction one gets from the consumption of another unit of a product.
F Minimum satisfaction one gets from consumption
Question #16
A Investment, which in the long-run determines the overall price level.
B Consumption expenditures, which drives prices.
C Utility or the satisfaction that one receives from consuming a good/service.
D Utility or the usefulness that one derives from consuming a good/service.