Microeconomics

Gabriel likes to spend his budget on horseback riding lessons and baseball lessons. Suppose the price of baseball lessons decreases, but his income and the price of horseback riding lessons remains unchanged. This would allow as to derive O) Gabriel's marginal benefit for horseback riding lessons and baseball lessons. ) Gabriel's demand curve for horseback riding lessons. ) Gabriel's budget line O Gabriel's demand for baseball lessons. Type here to searchWhich of these statements best fits how a behavioral economist might view a situation? O If you lost $20 today but then found $20 later on, you would feel neutral because it's as if you never lost anything at all. O If you find $100 on the street, you will be more likely to spend if freely than you would be to take $100 out of your bank account Dollars are fungible, or have equal value to the individual, regardless of the situation.5 of 14 As long as the principle of diminishing marginal utility is operating, any increased consumption of a good O lowers total utility. O lowers marginal utility, but may raise total utility. O lowers marginal utility and, therefore, total utility.we Sacs aga the brown of golf hues Nickless' and 'Oin 1." The more of any one she buys, the lower the marginal utility of that ball. In spending all her income, her marginal utility of a "Nickless' is 5 and her marginal utility of an "Olin 1" is 10. The price of a "Nickless be way to give up two 'Olin 1' balls for one "Nickless" ball staction by trading "Nickless' for "Onin 1" balls. tom, Alya must give up three '0in 1" balls for two "Nickless' balls Type here to search COPSAIL7 of 14 In the presence of declining marginal rates of substitution, consumers who again and again sacrifice a unit of one good cannot remain on their original indifference curve unless they receive as compensation O ever larger units of another good O ever smaller units of another good O again and again equal units of another good. Type here to search$25 day and June, Tammy spent all her clothing budget on bathing suits and beach bags. Each bathing suit cost $75. At Tammy's optimal choice, her marginal utility from the last bathing suit purchased is 300 and her marginal utility from the last beach bag purchased is 200. This means that each handbag must cost $100 $50 Type here to search1 of 14 Which of the following statements is true about total utility and consumer behavior? It increases with each additional purchase, but at a decreasing rate. It increases at a steady rate with every additional purchase. O It steadily decreases with each additional purchase.of 14 As a dudent Shayla enjoys consuming alphabet soup which is considered an inferior good. After Shayla graduates from college she acquires a job working as a data analyst and her income increases dramatically. What will most likely happen to Shayla's consumption of alphabet soup? () Shayla would discontinue consuming the soup and switch to peanut butter. Shayla would discontinue consuming the soup and start eating steaks. O Shayla would continue consuming alphabet soup 5 0 hype here to searchYixi are a lawyer representing a client who lost their $1 million home in a house fire. They are suing the home's ard hitect as design flaws were a major cause of the fire. How large would the da exactly $1 million some amount greater than $1 mimon some amount less than $1 million - Type here to search2 of 14 Most demand curves have a negative slope because O an increase in price raises real income and the income effect always causes consumers to reduce consumption of a commodity when income ta O the substitution effect always leads consumers to substitute higher quality goods for lower quality goods. the substitution effect always causes consumers to try to substitute away from the consumption for a commodity when the commodity's price rises10 of 14 Which of the following statements is true? A consumer has only one indifference curve. O The slope of the indifference curve is called the marginal rate of substitution. O Diminishing marginal rate of substitution means that the marginal rate of substitution increases as more of the good is consumed12 of 14 The reason the substitution effect works to encourage a consumer to buy less of a product when its price increases is O the real income of the consumer has been increased. O other products are now relatively more expensive than they were before. 74 O The product is now relatively more expensive than it was before. NAVA14 of 14 The table below represents consumption along Nikisha's budget constraint, with each row representing a possible consumption bundle. Nikisha derives 50 utils of happiness from eating her first slice of pizza, 40 utils for the second slide, 30 utils for the third slide, and so on with added utility declining by 10 for each hot dog consumed. The first soda provides 40 utils and declines by steps of 5 for each additional soda. Using this information identify the optimal (highest utility) consumption for Nikisha. Pizza Soda 10 To 5 slices of pizza and 0 sodas O 2 slices of pizza and 6 sodas 1 slice of pizza and 8 sodas 3 slices of pizza and 4 sodas Type here to search Recutacy acer CORSAIR F6 FZ F10of 14 Total utility is determined by O multiplying the marginal utility of the last unit consumed by the number of units consumed. multiplying the marginal utility of the last unit consumed by the unit price. adding up the marginal utilities of each unit consumed