Bill uses his entire budget to purchase Pepsi and hamburgers, and he c

1. Ronald, who consumes only hamburgers and hot dogs, has a weekly income of $50. He is currently consuming 20 hamburgers, at a price of $2 each, and 10 hot dogs, at a price of $1 each. If the last hamburger and the last hot dog both added 50 units to Ronald's total utility, he 选项： A、 both c and d B、 should buy more hamburgers and fewer hot dogs. C、 should buy more hot dogs and fewer hamburgers. D、 obtains more additional utility per dollar from hot dogs than from hamburgers. E、 is making the utility-maximizing choice.

2.Latisha has maximized her utility by consuming both strawberry shakes and hamburgers. The price of hamburgers exceeds that of strawberry shakes. Which of the following statements necessarily must be correct at her current consumption point? 选项： A: The total utility from strawberry shakes exceeds the total utility from hamburgers. B: The total utility from hamburgers exceeds the total utility from strawberry shakes. C: The marginal utility from the last strawberry shake exceeds the marginal utility from the last hamburger. D: The marginal utility from the last hamburger exceeds the marginal utility from the last strawberry shake.

3.Suppose that at Miles's current level of consumption, his marginal utility from a pizza is 10 utils, and his marginal utility from a pint of ice cream is 16 utils. If the price of a pizza is $8, and the price of a pint of ice cream is $5, is Miles maximizing his utility?选项： A:Yes. He should not change his spending on frozen pizza and ice cream.; B:No. He should shift his spending away from ice cream and towards frozen pizza.; C:No. He should shift his spending away from frozen pizza and towards ice cream.; D:No. He should buy less frozen pizza and less ice cream.

4. Jake plans to spend $100 on fried chicken and Pepsi. The price of a fried chicken is $5 and Pepsi is $2 per bottle. If Jake buys 10 fried chickens how many bottles of Pepsi can he buy? 选项： A、 50 B、 10 C、 25 D、 75

5.Emma consumes only hot dogs and hamburgers. She is at her consumer equilibrium. Hot dogs and hamburgers have the same marginal utility. Thus 选项： A: her total utility from all the hot dogs eaten must be the same as her total utility from all the hamburgers eaten. B: the price of a hot dog and the price of a hamburger must be the same. C: she must be eating the same number of hot dogs and hamburgers. D: Both answers B and C are correct.

6. Emma consumes only hot dogs and hamburgers. She is at her consumer equilibrium. Hot dogs and hamburgers have the same marginal utility. Thus A: her total utility from all the hot dogs eaten must be the same as her total utility from all the hamburgers eaten. B: the price of a hot dog and the price of a hamburger must be the same. C: she must be eating the same number of hot dogs and hamburgers. D: Both answers B and C are correct.

7.Sam spends all of his income on textbooks and hot dogs. The price of a textbook is $40 and the price of a hot dog is $0.50. If Sam is maximizing his utility and the marginal utility he derives from the last textbook he purchases is 400, then the marginal utility he derives from his last hot dog purchased must be 选项： A、400. B、10. C、5. D、20.

8. Bobby consumes only chocolate ice cream and vanilla ice cream. He is spending all of his income. His marginal utility of chocolate is 100 and his marginal utility of vanilla is 200, and the price of chocolate is $1.00 per scoop and the price of vanilla is $2.00 per scoop. To maximize his utility, Bobby should 选项： A、 buy more chocolate ice cream and less vanilla ice cream. B、 buy more vanilla ice cream and less chocolate ice cream. C、 not change his purchases between chocolate ice cream and vanilla ice cream. D、 buy no chocolate ice cream.

9.The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10. Which of the following correctly illustrates the principle of diminishing marginal utility? The fact that 选项： A: the sixth magazine has less marginal utility than the sixth CD. B: Jane's marginal utility per dollar from the second magazine is the same as her marginal utility per dollar from the third CD. C: the marginal utility per dollar from the sixth magazine is less than the total utility from six magazines. D: the marginal utility of the third CD is less than the marginal utility of second CD.

10.At his current level of consumption, Evan gets twice as much marginal utility from an additional bottle of water as that from an additional bottle of soda. If the price of soda is $1.00 per bottle, then Evan is maximizing utility if the price of a bottle of water is: 选项： A: $1.00 ; B: $1.50 ; C:$2.0 ; D:$0.50

11.At his current level of consumption, Evan gets twice as much marginal utility from an additional bottle of water as that from an additional bottle of soda. If the price of soda is $1.00 per bottle, then Evan is maximizing utility if the price of a bottle of water is:选项： A:$2.00; B:$.50; C:$1.00; D:$1.50

12.Gabriel operates a tree-trimming business in Maine. He charges the perfectly competitive price of $47 per hour. The marginal cost of working the 36th hour each week is $42; the marginal cost of working the 37th hour is $44; the 38th hour is $46; and the 39th hour is $48. How many hours should he work each week? 选项： A: He should work 40 hours per week, because he can always earn more revenue by working more. B: He should work 39 hours per week, because he would have to lower his price if her wanted to work more than that. C: He should work 38 hours per week, because this is the workload that maximizes his net gain. D: He should work 36 hours per week, because the marginal cost of working rises after this point.

13.The table above gives Jane's total utility from magazines and CDs. Initially the price of a magazine is $4 and the price of a CD is $10. Suppose the price of a magazine stays at $4 each, but the price of a CD falls to less than $10.00 each. With a $70.00 budget, the 选项： A: marginal utility per dollar from CDs increases and Jane buys more CDs in the new equilibrium. B: marginal utility per dollar from CDs decreases and Jane buys fewer CDs in the new equilibrium. C: marginal utility from magazines increases and Jane buys more magazines in the new equilibrium. D: marginal utility from magazines does not change so Jane buys fewer magazines in the new equilibrium.

14.Bob's Lawn Care Services is a perfectly competitive firm that currently mows 22 lawns a week. Bob's marginal cost exceeds the price he charges. Bob can increase his profit if he 选项： A: charges a higher price. B: charges a lower price. C: moves fewer than 22 lawns a week. D: moves more than 22 lawns a week.

15.Suppose that Fiona spends all of her income on 10 units of good X and 14 units of good Y. Fiona's marginal utility from the 10 unit of good X is 24 utils, and her marginal utility from the 14 unit of good Y is 20 utils. If the price of good X is $8 per unit and the price of good Y is $5 per unit, then to comply with the rational spending rule, Fiona should:选项： A:purchase more than 10 units of good X and less than 14 units of Y; B:purchase less than 10 units of good X and more than 14 units of good Y; C:purchase more than 10 units of good X and more than 14 units of good Y; D:continue to purchase 10 units of good X and 14 units of good Y

16.Evan spends all of his income on cheese and wine. A bottle of wine costs $20, and a pound of cheese costs $12. At his current consumption level, the marginal utility of a pound of cheese is 30 utils, and the marginal utility of a bottle of wine is 60 utils. In order to maximize his utility, Evan should: 选项： A: buy less of both wine and cheese. B: buy less wine and more cheese. C: buy more wine and less cheese. D: spend the same amount on cheese as he does on wine.

17.If Bobby decides that his marginal utility per dollar spent on
vanilla ice cream exceeds his marginal utility per dollar spent on
chocolate ice cream, he should then (
) 选项： A、buy more chocolate ice cream and less vanilla ice cream. B、buy more vanilla ice cream and less chocolate ice cream. C、buy all the vanilla ice cream he can. D、never buy chocolate ice cream.

18.Suppose that Fiona spends all of her income on 10 units of good X and 14 units of good Y. Fiona's marginal utility from the 10th unit of good X is 24 utils, and her marginal utility from the 14th unit of good Y is 20 utils. If the price of good X is $8 per unit and the price of good Y is $5 per unit, then to comply with the rational spending rule, Fiona should:选项： A:purchase less than 10 units of good X and more than 14 units of good Y.; B:continue to purchase 10 units of good X and 14 units of good Y.; C:purchase more than 10 units of good X and less than 14 units of Y.; D:purchase more than 10 units of good X and more than 14 units of good Y.

19.Tommy buys only soda and pizza and is buying the amounts that maximize his utility. The marginal utility from a soda is 5 and the price of a soda is $1. The marginal utility from a slice of pizza is 10. The price of a slice of pizza must be 选项： A、$10. B、$2. C、$1. D、some amount that cannot be calculated without more information.

20. Which of the following is NOT an assumption of marginal utility theory? 选项： A、 People derive utility from their consumption. B、 More consumption yields more total utility. C、 Marginal utility diminishes with more consumption. D、 Utility can be measured and the units of utility are precisely defined.

21.When a consumer spends all of his or her income and consumes a bundle of goods such that the marginal utility per dollar from all goods is equal, then the 选项： A: consumer's total utility is maximized. B: consumer is in his or her consumption equilibrium. C: marginal utilities for each good are maximized. D: Both answers A and B are correct.

22.The law of diminishing marginal utility______.A.suggests that total utility will eventually decrease if enough of the good is consumedB.suggests that as a consumer buys more of a good, its price will dropC.provides an explanation for perfectly elastic demand curvesD.suggests that as a individual's consumption of a good increases, his marginal utility must eventually decrease

23. Eclairs Cream puffsQuantityTotal utilityQuantityTotal utility0 00 011261 54.022432103.533423145.544144177.054415196.5The table gives the total utility Jamal derives from the consumption of eclairs and cream puffs. Jamal has $12 to spend on these two confectionery goods. The price of an eclair is $3 and the price of a cream puff is $1.50.a) Jamal's budget is $12. In order for Jamal to maximize his utility, how many eclairs and cream puffs should he buy?b) Suppose the price of an eclair increase to $6. Jamal's income does not change and neither does the price of a cream puff. What combination of eclairs and cream puffs will Jamal buy now?c) Using your answers to parts (a) and (b), derive two points on Jamal's demand curve for eclairs.