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Full download Economics 3rd Edition Hubbard Test Bank all chapter 2024 pdf
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Economics, 3e (Hubbard/O'Brien) - TB 1
Chapter 9 Consumer Choice and Behavioral Economics
2) Utility is
A) easily measured in units called utils.
B) subjective and difficult to measure.
C) the consumption of a quasi-public good like electricity or natural gas.
D) the production of a quasi-public good like electricity or natural gas.
Answer: B
Comment: Recurring
Diff: 1 Page Ref: 280/280
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
1
Copyright © 2010 Pearson Education, Inc.
4) As a consumer consumes more and more of a product in a particular time period, eventually
marginal utility
A) rises.
B) is constant.
C) declines.
D) fluctuates.
Answer: C
Comment: Recurring
Diff: 1 Page Ref: 281/281
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
5) If a consumer receives 22 units of marginal utility for consuming the first can of soda, 20 units
from consuming the second, and 15 from the third, the total utility of consuming the three units
is
A) 57 utility units.
B) 35 utility units.
C) 15 utility units.
D) unknown as more information is needed to determine the answer.
Answer: A
Comment: Recurring
Diff: 1 Page Ref: 280-281/280-281
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
6) If a consumer receives 20 units of utility from consuming two candy bars, and 25 units of
utility from consuming three candy bars, the marginal utility of the third candy bar is
A) 25 utility units.
B) 20 utility units.
C) 5 utility units.
D) unknown as more information is needed to determine the answer.
Answer: C
Comment: Recurring
Diff: 1 Page Ref: 280-281/280-281
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
2
Copyright © 2010 Pearson Education, Inc.
7) If a consumer receives 20 units of utility from consuming two candy bars, and 25 units of
utility from consuming three candy bars, the marginal utility of the second candy bar is
A) 25 utility units.
B) 20 utility units.
C) 5 utility units.
D) unknown as more information is needed to determine the answer.
Answer: D
Comment: Recurring
Diff: 2 Page Ref: 280-281/280-281
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
8) Total utility
A) cannot decrease as a person consumes more and more of a good.
B) has a constant rate of increase as a person consumes more and more of a good.
C) is equal to the sum of the marginal utilities of all units consumed.
D) is negative when marginal utility is declining.
Answer: C
Comment: Recurring
Diff: 2 Page Ref: 280/280
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
9) If, as a person consumes more and more of a good, each additional unit adds less satisfaction
than the previous unit consumed, we are seeing the workings of
A) the law of demand.
B) the law of supply.
C) the law of increasing marginal opportunity cost.
D) the law of diminishing marginal utility.
Answer: D
Comment: Recurring
Diff: 1 Page Ref: 281/281
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
3
Copyright © 2010 Pearson Education, Inc.
10) The law of diminishing marginal utility states that
A) eventually total utility falls as more of a good is consumed, other things constant.
B) the extra satisfaction from consuming a good decreases as more of a good is consumed, other
things constant.
C) the extra satisfaction from consuming a good increases slowly as more of a good is
consumed, other things constant.
D) when the extra satisfaction from consuming a good becomes negative, total utility starts
falling, other things constant.
Answer: B
Comment: Recurring
Diff: 1 Page Ref: 281/281
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
12) Which of the following is likely to occur as the result of the law of diminishing marginal
utility?
A) Petra's utility from her second apple was less than her satisfaction from her first orange.
B) Hudson enjoyed his second slice of pizza more than his first.
C) Sabines' utility from her first granola bar is greater than Rachel's utility from her second
granola bar.
D) Wesley enjoyed his second bottle of iced tea less than his first bottle, other things constant.
Answer: D
Comment: Recurring
Diff: 2 Page Ref: 281/281
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
4
Copyright © 2010 Pearson Education, Inc.
13) If, when you consume another piece of candy, your marginal utility is zero, then
A) you want more candy.
B) you have maximized your total utility from consuming candy.
C) you have not yet reached the point of diminishing marginal utility.
D) you should consume less candy.
Answer: B
Comment: Recurring
Diff: 2 Page Ref: 281/281
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
15) If your total satisfaction increases when you consume another unit, your marginal utility
must be
A) increasing.
B) decreasing.
C) negative.
D) positive.
Answer: D
Comment: Recurring
Diff: 1 Page Ref: 280-281/280-281
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
5
Copyright © 2010 Pearson Education, Inc.
16) If total utility increases at a decreasing rate as a consumer consumes more coffee, then
marginal utility must
A) remains constant.
B) increase also.
C) decrease.
D) be negative.
Answer: C
Comment: Recurring
Diff: 2 Page Ref: 280-281/280-281
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
18) Suppose your marginal utility from consuming the 3rd slice of cake is zero, then your total
utility from consuming cake is
A) maximized.
B) decreasing.
C) negative.
D) increasing.
Answer: A
Comment: Recurring
Diff: 2 Page Ref: 280-281/280-281
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
6
Copyright © 2010 Pearson Education, Inc.
19) Consumers maximize total utility within their budget constraint by
A) buying the cheapest goods they can find.
B) buying whatever they like the best.
C) buying the goods with the largest marginal utility per dollar spent.
D) spending the same dollar amount for each good.
Answer: C
Comment: Recurring
Diff: 2 Page Ref: 281/281
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
7
Copyright © 2010 Pearson Education, Inc.
Table 9-1
Quantity of Quantity of
Total Utility Total Utility
Pita Wraps Bubble Tea
1 60 1 40
2 102 2 70
3 132 3 91
4 144 4 106
5 144 5 112
6 138 6 115
7 128 7 115
Keegan has $30 to spend on Pita Wraps and Bubble Tea. The price of a Pita Wrap is $6 and the
price of a glass of Bubble Tea is $3. Table 9-1 shows his total utility from different quantities of
the two items.
22) Refer to Table 9-1. If Keegan can drink all the bubble tea he wants for free, how many
glasses will he consume?
A) 4 glasses
B) 5 glasses
C) 6 glasses
D) 7 glasses
Answer: C
Diff: 2 Page Ref: 284-285/284-285
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: Solved Problem: Finding the Optimal Level of Consumption
8
Copyright © 2010 Pearson Education, Inc.
23) Carolyn spends her income on popular magazines and music CDs. If the price of a CD is
four times the price of a magazine and if Carolyn is maximizing her utility, she buys
A) both goods until the marginal utility of the last CD purchased is four times the marginal
utility of the last magazine purchased.
B) both goods until the marginal utility of the last magazine purchased is four times the marginal
utility of the last CD purchased.
C) four times as much magazines as CDs.
D) four times as much CDs as magazines.
Answer: A
Comment: Recurring
Diff: 3 Page Ref: 281-284/281-284
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
24) Suppose Joe is maximizing total utility within his budget constraint. If the price of the last
pair of jeans purchased is $25 and it yields 100 units of extra satisfaction and the price of the last
shirt purchased is $20, then, using the rule of equal marginal utility per dollar spent, the extra
satisfaction received from the last shirt must be
A) 2,000 units of utility.
B) 500 units of utility.
C) 100 units of utility.
D) 80 units of utility.
Answer: D
Comment: Recurring
Diff: 2 Page Ref: 281-284/281-284
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
9
Copyright © 2010 Pearson Education, Inc.
25) Avner is maximizing total utility by buying sports magazines and protein supplements. For
him to buy more sports magazines,
A) the price of protein supplements. has to fall.
B) the price of sports magazines has to fall.
C) the price of sports magazines has to rise.
D) Since Avner is maximizing his utility, nothing can change the consumption of sports
magazines.
Answer: B
Comment: Recurring
Diff: 2 Page Ref: 281-284/281-284
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
26) Most people would prefer to drive a luxury car that has all the options, but more people buy
less expensive cars even though they could afford the luxury car because
A) car buyers are irrational.
B) the total utility of less expensive cars is greater than that of luxury cars.
C) the marginal utility per dollar spent on the less expensive car is higher than that spent on
luxury cars.
D) luxury cars cost a lot more than non-luxury cars.
Answer: C
Comment: Recurring
Diff: 2 Page Ref: 281-284/281-284
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
27) If Valerie purchases ankle socks at $5 and gets 25 units of marginal utility from the last unit,
and bandanas at $3 and gets 12 units of marginal utility from the last bandana purchased, she
A) is maximizing total utility and does not want to change their consumption of ankle socks or
bandanas.
B) wants to consume more ankle socks and fewer bandanas.
C) wants to consume more of bandanas and fewer ankle socks.
D) wants to consume less of both ankle sock and bandanas.
Answer: B
Comment: Recurring
Diff: 2 Page Ref: 281-284/281-284
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
10
Copyright © 2010 Pearson Education, Inc.
28) If Marlowe obtains 9 units of utility per dollar spent on apples and 6 units of utility per dollar
spent on oranges, then Marlowe
A) is maximizing total utility.
B) should buy more apples and fewer oranges.
C) should buy more oranges and fewer apples.
D) should buy fewer oranges and fewer apples.
Answer: B
Comment: Recurring
Diff: 2 Page Ref: 281-284/281-284
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
29) If Callum is consuming his utility maximizing bundle and the price of one good rises, what
happens to the marginal utility per dollar spent on this good (MU/P), and what should Callum
do?
A) MU/P has increased and Callum should buy more of this good.
B) MU/P has increased and Callum should buy less of this good.
C) MU/P has decreased and Callum should buy more of this good.
D) MU/P has decreased and Callum should buy less of this good.
Answer: D
Comment: Recurring
Diff: 2 Page Ref: 281-284/281-284
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
30) If Ewan is consuming his utility maximizing bundle and the price of one good falls, what
happens to the marginal utility per dollar spent on this good (MU/P), and what should Ewan do?
A) MU/P has increased and Ewan should buy more of this good.
B) MU/P has increased and Ewan should buy less of this good.
C) MU/P has decreased and Ewan should buy more of this good.
D) MU/P has decreased and Ewan should buy less of this good.
Answer: A
Comment: Recurring
Diff: 2 Page Ref: 281-284/281-284
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
11
Copyright © 2010 Pearson Education, Inc.
31) When the price of audio books, a normal good, falls, causing your purchasing power to rise,
you buy more of them due to
A) the substitution effect.
B) the income effect.
C) the deadweight loss effect.
D) the elasticity effect.
Answer: B
Comment: Recurring
Diff: 2 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
32) When the price of summer tank tops falls and you buy more of them because they are
relatively less expensive, this is called
A) the substitution effect.
B) the income effect.
C) the deadweight loss effect.
D) the elasticity effect.
Answer: A
Comment: Recurring
Diff: 2 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
33) The substitution effect of an increase in the price of Raisin Bran refers to
A) the decrease in the demand for Raisin Bran when its price rises.
B) the result that consumers will now switch to a substitute good such as Cheerios, and the
demand curve for Raisin Bran shifts to the left.
C) the fact that the higher price of Raisin Bran lowers consumer's purchasing power, holding
money income constant.
D) the fact that the higher price of Raisin Bran relative to its substitutes, such as Cheerios, cause
consumers to buy less Raisin Bran.
Answer: D
Comment: Recurring
Diff: 2 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
12
Copyright © 2010 Pearson Education, Inc.
34) The income effect of an increase in the price of salmon
A) is the change in the demand for salmon when income increases.
B) refers to the relative price effect - salmon is more expensive compared to other types of fish -
which causes the consumer to buy less salmon.
C) refers to the effect on a consumer's purchasing power which causes the consumer to buy less
salmon, holding all other factors constant.
D) is the change in the demand for other types of fish, say trout, that result from a decrease in
purchasing power.
Answer: C
Comment: Recurring
Diff: 2 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
13
Copyright © 2010 Pearson Education, Inc.
36) If the price of muffins, a normal good you enjoy, rises,
A) the income and substitution effects offset each other but the price effect leads you to buy
fewer muffins.
B) both the income and substitution effects lead you to buy fewer muffins.
C) the substitution effect which causes you to decrease your muffin consumption outweighs the
income effect which causes you to increase your muffin consumption, resulting in fewer muffins
purchased.
D) the income effect which causes you to decrease your muffin consumption outweighs the
substitution effect which causes you to increase your muffin consumption, resulting in fewer
muffins purchased.
Answer: B
Comment: Recurring
Diff: 2 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
37) The demand curve for corn is downward sloping. If the price of corn, an inferior good, falls,
A) the income effect which causes you to reduce your corn purchases is smaller than the
substitution effect which causes you to increase your corn purchases, resulting in a net increase
in quantity demanded.
B) the income effect which causes you to increase your corn purchases is larger than the
substitution effect which causes you to reduce your corn purchases, resulting in a net increase in
quantity demanded.
C) both the income and substitution effects reinforce each other to increase the quantity
demanded.
D) the income and substitution effects offset each other but the price effect of an inferior good
leads you to buy less corn.
Answer: A
Comment: Recurring
Diff: 3 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: None
14
Copyright © 2010 Pearson Education, Inc.
38) The demand curve for canned peas is downward sloping. If the price of canned peas, an
inferior good, rises,
A) the income effect which causes you to reduce your canned peas purchases is smaller than the
substitution effect which causes you to increase your purchases, resulting in a net increase in
quantity demanded.
B) the income effect which causes you to increase your canned peas purchases is smaller than the
substitution effect which causes you to reduce your purchases, resulting in a net decrease in
quantity demanded.
C) both the income and substitution effects reinforce each other to decrease the quantity
demanded.
D) the income and substitution effects offset each other but the price effect of an inferior good
leads you to buy more canned peas.
Answer: B
Comment: Recurring
Diff: 3 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: None
39) Consider a downward-sloping demand curve. When the price of an inferior good increases,
the income and substitution effects
A) work in the same direction to increase quantity demanded.
B) work in the same direction to decrease quantity demanded.
C) work in opposite directions and quantity demanded increases.
D) work in opposite directions and quantity demanded decreases.
Answer: D
Comment: Recurring
Diff: 2 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: None
15
Copyright © 2010 Pearson Education, Inc.
40) Consider a downward-sloping demand curve. When the price of an inferior good decreases,
the income and substitution effects
A) work in the same direction to increase quantity demanded.
B) work in the same direction to decrease quantity demanded.
C) work in opposite directions and quantity demanded increases.
D) work in opposite directions and quantity demanded decreases.
Answer: C
Comment: Recurring
Diff: 2 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: None
41) Consider a downward-sloping demand curve. When the price of a normal good increases, the
income and substitution effects
A) work in the same direction to increase quantity demanded.
B) work in the same direction to decrease quantity demanded.
C) work in opposite directions and quantity demanded increases.
D) work in opposite directions and quantity demanded decreases.
Answer: B
Comment: Recurring
Diff: 2 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: None
42) Consider a downward-sloping demand curve. When the price of a normal good decreases,
the income and substitution effects
A) work in the same direction to increase quantity demanded.
B) work in the same direction to decrease quantity demanded.
C) work in opposite directions and quantity demanded increases.
D) work in opposite directions and quantity demanded decreases.
Answer: A
Comment: Recurring
Diff: 2 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: None
16
Copyright © 2010 Pearson Education, Inc.
Table 9-2
Quantity of Quantity of
Total Utility Total Utility
Soup (cups) Sandwiches
1 40 1 45
2 60 2 75
3 72 3 102
4 82 4 120
5 88 5 135
6 90 6 145
Table 9-2 above shows Keira's utility from soup and sandwiches. The price of soup is $2 per cup
and the price of a sandwich is $3. Keira has $18 to spend on these two goods.
43) Refer to Table 9-2. What is Keira's marginal utility per dollar spent on the third cup of soup?
A) 72 units of utility
B) 36 units of utility
C) 12 units of utility
D) 6 units of utility
Answer: D
Diff: 1 Page Ref: 284-285/284/285
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: Solved Problem: Finding the Optimal Level of Consumption
44) Refer to Table 9-2. If Keira maximizes her utility, how many units of each good should she
buy?
A) 1 cup of soup and 5 sandwiches
B) 3 cups of soup and 4 sandwiches
C) 6 cups of soup and 2 sandwiches
D) 4 cups of soup and 3.5 sandwiches
Answer: B
Diff: 2 Page Ref: 284-285/284/285
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: Solved Problem: Finding the Optimal Level of Consumption
17
Copyright © 2010 Pearson Education, Inc.
45) Refer to Table 9-2. Suppose Keira's income increases from $18 to $23 but prices have not
changed. What is her utility maximizing bundle now?
A) 6 cups of soup and 5 sandwiches
B) 4 cups of soup and 5 sandwiches
C) 5 cups of soup and 4 sandwiches
D) 5 cups of soup and 5 sandwiches
Answer: B
Diff: 2 Page Ref: 284-285/284/285
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: Solved Problem: Finding the Optimal Level of Consumption
46) Refer to Table 9-2. Holding prices constant, when Keira's income changed from $18 to $23,
her utility maximizing bundle changed. Based on your answers to her optimal choices at the two
income levels, what type of goods are soup and sandwiches?
A) Soup is an inferior good and sandwiches are a normal good.
B) Soup is a normal good and sandwiches are an inferior good.
C) Both soup and sandwiches are normal goods.
D) Both soup and sandwiches are inferior goods.
Answer: C
Diff: 2 Page Ref: 284-285/284/285
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: Solved Problem: Finding the Optimal Level of Consumption
18
Copyright © 2010 Pearson Education, Inc.
47) Refer to Table 9-2. Holding prices constant, when Keira's income changed from $18 to $23,
what happens to her total utility and to the marginal utilities of the last cup of soup and the last
sandwich purchased?
A) Her total utility increases but the marginal utilities of the last cup of soup and the last
sandwich consumed decrease.
B) Her total utility, the marginal utility of the last cup of soup consumed and the marginal utility
of the last sandwich consumed, all increase.
C) Her total utility decreases but the marginal utilities of the last cup of soup and the last
sandwich consumed increase.
D) Her total utility and the marginal utility of the last cup of soup consumed increase but
marginal utility of the last sandwich consumed decreases.
E) Her total utility and the marginal utility of the last sandwich consumed increase but marginal
utility of the last cup of soup consumed decreases.
Answer: A
Diff: 2 Page Ref: 284-285/284/285
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: Solved Problem: Finding the Optimal Level of Consumption
48) Adhira buys chocolates and almonds. She has 3 bars of chocolates and 4 bags of almonds.
The marginal utility of the third chocolate bar is 18 units of utility and the marginal utility from
the fourth bag of almonds is also 18. Is Adhira maximizing her utility?
A) Yes, the marginal utility from the last unit of each good is equal.
B) No, she must buy 1 more chocolate bar to equate her quantities of the two goods.
C) No, she must buy cut back to 3 bags of almonds to equate her quantities of the two goods.
D) No, without information on her income and the prices of the two goods, we cannot answer the
question.
Answer: D
Diff: 2 Page Ref: 286/286
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: Don't Let This Happen to YOU!: Equalize Marginal Utilities per Dollar
49) If you received negative marginal utility from consuming the 4th slice of pizza, then your
total utility from 4 slices of pizza must be less than your total utility from 3 slices of pizza.
Answer: TRUE
Comment: Recurring
Diff: 2 Page Ref: 281/281
Topic: Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
19
Copyright © 2010 Pearson Education, Inc.
50) When diminishing marginal utility sets in, total utility must be negative.
Answer: FALSE
Comment: Recurring
Diff: 2 Page Ref: 281/281
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
51) A consumer maximizes her total utility from a bundle of goods when her marginal utility
from each good is equal.
Answer: FALSE
Diff: 1 Page Ref: 281/281
Topic: Marginal Utility
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: Don't Let This Happen to YOU!: Equalize Marginal Utilities per Dollar
52) The economic model of consumer behavior explains how consumers' tastes and preferences
are formed.
Answer: FALSE
Comment: Recurring
Diff: 1 Page Ref: 280/280
Topic: Consumer Behavior
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Reflective Thinking
Special Feature: None
53) The income effect of a price increase causes a decrease in the quantity demanded of a normal
good.
Answer: TRUE
Comment: Recurring
Diff: 2 Page Ref: 287-288/287-288
Topic: Income and Substitution Effects
Objective: LO1: Define utility and explain how consumers choose goods and services to
maximize their utility.
AACSB: Analytic Skills
Special Feature: None
20
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upon which it had been refused a place among the genuine works are very
equivocal. I feel very much at a loss what to decide with regard to it. It is
unquestionably the work of a man possessed of a highly cultivated mind, free
from the popular superstition of his age, and familiarly acquainted with
comparative anatomy, and having no contemptible knowledge of human
physiology. There is, in fact, no name, whether in ancient or modern times, to
which it might not do honor. That it is not unworthy, then, of the great
Hippocrates, all must allow, but whether or not he be the actual author of it,
there is much difficulty in determining satisfactorily. That, in certain respects, it
is very unlike his other works, must be admitted; the talent which it displays is
more of a reflective than of a perceptive nature, which is the reverse of the
common character of Hippocrates, who, in his genuine works, evidently evinces
a disposition to trust to accurate observation rather than to acute ratiocination.
The style, too, I must admit, is more diffuse than the true Hippocratic style
generally is. All this might, no doubt, be accounted for, upon the supposition
that the work was addressed to the general reader, and not to the professional.
Other reasons might be imagined, to account for the diversity of style and
matter, but these I shall not occupy time in discussing, as I have decided upon
giving a translation of it, so that the English reader may be enabled to judge for
himself as to its genuineness. Whether the tract in question be the work of
Hippocrates, or, as some have supposed, of his philosophical friend
Democritus,[185] there can be little or no doubt that it is a production of that age,
for it appears to me that their contemporary, Plato, has evidently made
reference to it. Thus, in that portion of his “Timæus” which treats of the causes
of diseases, he clearly seems, in accounting for epilepsy, to have had in view
the doctrines contained in this treatise. For although he uses the term “sacred
disease,” and applies “most divine,” as an epithet to the cavities (ventricles?) of
the head, he still, in imitation of the author of this work, accounts for the disease
upon natural causes, that is to say, from derangements of the pneuma and
phlegm.[186]
XXXIII. Ἐπιδημών, β’, δ’, ε’, ς’, ζ’—The 2d, 4th, 5th, 6th, and 7th Books of the
Epidemics.
With the exception of Erotian, who admits the whole of the seven books of
Epidemics into his list of the works of Hippocrates, I am not aware that any of
the authorities, ancient or modern, recognize them as genuine. Galen says that
the seventh is allowed by all to be spurious; that the fifth is the work of
Hippocrates, the son of Draco, that is to say, of a grandson of the great
Hippocrates; and that the second, fourth, and sixth were held by some to be the
productions of a son of Hippocrates, and by some they were looked upon as
having been written, indeed, by Hippocrates himself, but merely as notes or
commentaries. Galen himself inclines to the opinion that these four books are
the production of Thessalus, the son of Hippocrates.[224]
From what has been stated respecting these books, it will be clearly seen
that, although there is no reason whatever to suppose they were published by
Hippocrates, it is, at the same time, highly probable that he had something to
do with the composition of them, and that, at all events, they emanated from the
school upon which his name has cast so much splendor. I think myself,
therefore, called upon to give a condensed view of their contents; and in doing
so, I shall not scruple to avail myself of the very important annotations made on
them by M. Littré, in his recent edition of this portion of the Hippocratic treatises.
With regard to these books, in general, he observes that they are naturally
divided into two groups, the one containing the second, fourth, and sixth books,
the other the fifth and seventh. The correctness of this division is quite evident
from a comparison of the contents of the different books, and, to a certain
extent, it is recognized by Galen.[225]
As to the locality of these observations, M. Littré shows that the spot of their
greatest activity is Thessaly and Thrace, although mention of Athens, and of
certain cities of the Peloponnesus occasionally occurs. He traces with much
minuteness the connection of these books with the other works in the
Hippocratic Collection. For example, he shows the connection between those in
the first group, with the “Aphorisms,” in particular, but also with the treatises,
“On Airs,” etc., “The Mochlicus,” “The Surgery,” etc., and of those in the other
group, with the work “On Wounds of the Head” in particular. I will now offer a
few remarks on the contents of each of these books.
M. Littré, in his argument prefixed to the second book, treats of various
matters contained in it, the most interesting of which is his elaborate disquisition
on the nature of the carbuncles (ἄνθρακες) described in his book, during the
course of which he brings into review various collateral passages from the
works of subsequent authors, and discusses the question at considerable
length whether or not they apply to smallpox. I am free to admit that it would
have been to my advantage if I had seen this part of the writings of M. Littré
before piling my commentary on Paulus Ægineta, B. IV., 25. I must be
permitted to say, however, that I see no reason for changing my opinions with
regard to the anthrax of the Greek writers on medicine. I certainly cannot agree
with M. Theod. Kauser, in setting down the ancient descriptions of the anthrax
and plague (λοιμὸς) as applying to the smallpox. Having diligently studied the
minute descriptions which the ancient medical authors give of the different
varieties of cutaneous disease, I am confident that if the smallpox had actually
existed in their days, they would not have passed over the disease with a vague
and casual notice, but would have given us such a sketch of its appearances
that no one could have failed to recognize its features. The carbuncles, then,
which are incidentally mentioned by Hippocrates at the beginning of this book, I
am disposed to look upon as one of those anomalous phases of disease which
are every now and then making their appearance, and I cannot persuade
myself that they had anything to do with smallpox.
Among the important matters contained in this book may be noticed the
remarks on deposits, an interesting subject often alluded to in the Hippocratic
treatises, § 7. At § 22 a case is obscurely noticed, which M. Littré concludes,
but upon very slight grounds, to have been a case of purulent infection. At § 24
spontaneous luxation of the cervical vertebræ is described, as M. Littré, in his
argument, remarks, with admirable judgment. It is also alluded to at “Aphoris,”
iii., 26, and “De Articulis,” tom. iv., p. 179, ed. Littré. This affection, which came
afterwards to be overlooked, has been redescribed of late years. In the third
section there is given an interesting account of causus, the remittent fever of
hot climates, so admirably described afterward by Aretæus. The fourth section
is occupied with a description of the veins of the body, which is certainly
confused, and yet we find in it the distinction between the nature of the arteries
and veins clearly pointed out. It is curious, moreover, that Galen, in one place,
stands up for this part as being genuine and accurate.[226] See also b.v. § 46.
The last two sections treat professedly of physiognomy, but contain other
detached and unconnected observations on medical subjects. Altogether, the
impression which a careful perusal of this book conveys to one is, that it is a
compilation of the most incongruous matters, strung together without any plan;
but, at the same time, one cannot fail to detect in it traces of no contemptible
talent for observation and description.
The fourth book, of the whole number, is the one which is written with the
least unity of design. Yet, as M. Littré remarks, it is interesting as containing the
history of an epidemical causus, complicated with jaundice and ophthalmia,
which would appear to have been very similar to the febrile epidemic which
prevailed in Scotland a few years ago. With this opinion I entirely acquiesce,
after having had a good deal of experience in the treatment of that epidemic. It
was decidedly of the remittent type, was frequently accompanied with jaundice,
and the patients were very subject to relapses and affections of the eyes.[227]
For Hippocrates’s description of it see tom. v., p. 169, ed. Littré. M. Littré also
makes the important remark that, of late years, proper attention has not been
paid to the state of the urine at the epoch of a crisis in fevers. He mentions that
M. Martin Solon holds that, at the resolution of diseases, the urine is apt to
become albuminous; but that, in a true crisis, the precipitate is generally
composed of urate of ammonia. M. Zimmerman found the urinary deposit
composed of the urate of ammonia, with the triple phosphates and the crystals
of uric acid. Certain observations on this critical deposit occur in this book of the
Epidemics, but they are met with more frequently and more distinctly expressed