A) the clean fresh taste of water from his SIGG water bottle.
B) the knowledge that he is doing something good for the environment by not using plastic water bottles.
C) the knowledge that others in his firm observe his environmentally-friendly choice of water bottle.
D) Joe likely derives utility from all three of these sources.
F) None of the above
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A) A
B) B
C) C
D) D
F) B) and D)
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A) The individual is revealing that they can't decide whether they gain more utility from pizza or from soda.
B) People tend to act irrationally around food,and the concept of utility maximization cannot be applied.
C) The person eats pizza until his marginal utility for pizza is lower than it is for soda,then he switches to soda.
D) The concept of unlimited wants says he will never tire of eating pizza and soda.
F) C) and D)
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A) buy the same bundle of goods regardless of changing prices.
B) choose the bundle of goods that maximizes their utility regardless of their income.
C) change their consumption choices when either prices or income changes.
D) change their consumption choices only when both prices and income changes simultaneously.
F) A) and B)
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A) is a unique combination of goods and services an individual could choose to consume.
B) describes the amount of people that choose a particular combination of goods.
C) is a curve describing different combinations of goods and services an individual could choose to consume.
D) is a function that calculates the total utility that a particular person derives from consuming a combination of goods and services.
F) All of the above
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A) is a measurement of our direct benefit of consuming the good.
B) is a measurement of the benefit of consuming the good relative to the opportunity cost.
C) is a measurement of outside perceptions and inner preferences.
D) is a measurement of outside benefits and inner costs.
F) B) and D)
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A) will cause the individual to buy more of that good because they have relatively more income.
B) will cause the individual to buy less of that good because they have relatively less income.
C) will cause the individual to buy more of that good and less of others because it is relatively less expensive.
D) will cause the individual to buy less of that good and more of others because it is relatively more expensive.
F) A) and B)
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A) preferences.
B) utility.
C) income.
D) values.
F) All of the above
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A) Soda costs $3 per case,and milk costs $4 a gallon.
B) Soda costs $4 per case,and milk costs $3 a gallon.
C) Soda costs $12 per case and milk costs $9 a gallon.
D) Soda costs $6 per case and milk costs $3 a gallon.
F) None of the above
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A) shows a constant dollar amount spent on different combinations of goods,and each bundle brings the same utility.
B) shows a constant dollar amount spent on different combinations of goods,and each bundle brings a different amount of utility.
C) shows a constant amount of utility gained by consuming different combinations of goods,and each bundle costs the same.
D) None of these is true.
F) A) and C)
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A) James may prefer to be a "big fish in a little pond" and stay at his current school,rather than transfer to the more competitive one where he is less likely to stand out.
B) James' choice in this example is to choose his frame of reference,which inherently affects the utility we derive from our actions.
C) James' frame of reference will change if he switches schools,so his constant performance may derive different levels of utility.
D) All of these statements are true.
F) A) and B)
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A) a motive for action in which a person's utility is unaffected when another's utility increases.
B) a motive for action in which a person's utility is decreased when another's utility increases.
C) a motive for action in which a person's utility is increased when another's utility increases.
D) a motive for action in which a person's utility becomes negative when another's utility increases.
F) A) and B)
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A) Ken doesn't like nachos.
B) Ken prefers nachos over spaghetti.
C) Ken will get more utility from having spaghetti for dinner than nachos.
D) None of these is true.
F) B) and C)
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A) cannot explain why someone would choose a meal that brings her less utility than another.
B) would suggest that making a good impression with her choice will bring her more utility than ordering lamb and making a bad impression.
C) would suggest that she values what Barney thinks of her and will derive negative utility if she does not impress him.
D) cannot be used to explain matters of the heart.
F) None of the above
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A) Jack still has $5 left to spend.
B) the price of ice cream must have increased to $8.
C) the price of popsicles must have decreased.
D) None of these is true.
F) A) and B)
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A) Billy is a homebody and never goes out.
B) Billy will get more utility from watching TV than spending time with his friends.
C) Billy will regret not spending more time with his friends.
D) Billy's revealed preference is to always be alone.
F) C) and D)
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A) explains why individuals rarely maximize their total utility.
B) is the change in total utility that comes from consuming one additional unit of a good or service.
C) is the principle that the additional utility gained from consuming successive units of a good or service tends to be smaller than the utility gained from the previous unit.
D) is the principle that the additional utility gained from consuming different bundles of goods and services tend to be smaller than the utility gained from consuming just one bundle of goods and services.
F) B) and D)
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