Economics

In analyzing land rent, David Ricardo constructed a model based on

In analyzing land rent, David Ricardo constructed a model based on

In analyzing land rent, David Ricardo constructed a model based on
A) perfectly elastic demand for land.
B) a perfectly elastic supply of land.
C) land being available in infinite quantities.
D) the supply of land being perfectly inelastic.

A.Jay   26   3 Replies

dreama_g

Economic rent applies to

Economic rent applies to

Economic rent applies to
A) land only and nothing else.
B) real property only.
C) all resources.
D) any resource in fixed supply.

lvida   32   3 Replies

sudenzia

If price of a product falls

If price of a product falls

If price of a product falls
A) the marginal utility of the product also falls.
B) the budget line rotates to the right.
C) the budget line rotates to the left.
D) the indifference curve will shift to the left.

fomor   11   3 Replies

rockintictaco

Using indifference curve analysis, an optimum is characterized by

Using indifference curve analysis, an optimum is characterized by

Using indifference curve analysis, an optimum is characterized by
A) the marginal rate of substitution of one good divided by its price equal to the marginal rate of substitution of the other good divided by its price.
B) the marginal rate of subst

bosoxsilva   24   3 Replies

elizabetheldrid

The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured ...

The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured ...

The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured along the horizontal axis. If the prices of both good Y and good X rise, the budget line
A) shifts outward to the right and the vertical and horizonta

fluffycookie   27   3 Replies

Stevea26

The consumption possibilities curve is the

The consumption possibilities curve is the

The consumption possibilities curve is the
A) supply curve.
B) demand curve.
C) budget constraint.
D) indifference curve.

Luikennoah   67   3 Replies

jayfo05

All possible combinations of goods that can be purchased at fixed prices with a specific income is

All possible combinations of goods that can be purchased at fixed prices with a specific income is

All possible combinations of goods that can be purchased at fixed prices with a specific income is
A) a marginal utility curve.
B) a total utility curve.
C) an indifference curve.
D) a budget constraint.

csaxton   30   3 Replies

tjoshie77

What are the key properties of indifference curves?

What are the key properties of indifference curves?

What are the key properties of indifference curves?

OkeyDokey   15   3 Replies

Eighty8

Assume that good X and good Y each have diminishing marginal utility for a consumer. In this case,

Assume that good X and good Y each have diminishing marginal utility for a consumer. In this case,

Assume that good X and good Y each have diminishing marginal utility for a consumer. In this case,
A) an indifference curve linking the two goods will have a constant slope.
B) an indifference curve will be convex to the origin.
C) the demand curv

Meesh1234   45   3 Replies

novae

An indifference curve cannot be positively sloped because

An indifference curve cannot be positively sloped because

An indifference curve cannot be positively sloped because
A) the law of diminishing marginal utility would be violated.
B) the substitution effect would be violated.
C) a point to the right of another point will represent a lower quantity of both

carlocarlo   27   3 Replies

Lourd Jenkins

Why is water much cheaper than diamonds even though water is essential to human lives while diamonds are NOT?

Why is water much cheaper than diamonds even though water is essential to human lives while diamonds are NOT?

Why is water much cheaper than diamonds even though water is essential to human lives while diamonds are NOT?

aswizzlebizzle   55   3 Replies

rhockeygirl

Why does a price increase of a product result in a decrease in the quantity demanded of that ...

Why does a price increase of a product result in a decrease in the quantity demanded of that ...

Why does a price increase of a product result in a decrease in the quantity demanded of that product, according to utility analysis?

nuttyprof   57   3 Replies

pie

Why are diamonds more expensive than water?

Why are diamonds more expensive than water?

Why are diamonds more expensive than water?
A) because the last glass of water has higher marginal utility than the last diamond
B) because the last diamond has higher marginal utility than the last glass of water
C) because you get more total uti

lvida   28   3 Replies

Stevea26

The negative relationship between the quantity demanded of a commodity and its price can be ...

The negative relationship between the quantity demanded of a commodity and its price can be ...

The negative relationship between the quantity demanded of a commodity and its price can be explained by the principle of
A) increasing total utility.
B) contingent valuation.
C) indifference analysis.
D) diminishing marginal utility.

lodidodiclaudie   39   3 Replies

7.prime7105

When the price of a good that a person is consuming falls, other things being constant, there is

When the price of a good that a person is consuming falls, other things being constant, there is

When the price of a good that a person is consuming falls, other things being constant, there is
A) a decline in real income.
B) a decline in purchasing power.
C) a real income effect.
D) no change in purchasing power.

kg0923   29   3 Replies

Ansuha

When the price of a normal good decreases, people increase their consumption of the good. The reason is

When the price of a normal good decreases, people increase their consumption of the good. The reason is

When the price of a normal good decreases, people increase their consumption of the good. The reason is
A) the law of diminishing marginal utility.
B) the substitution and income effects.
C) the substitution effect only.
D) the income effect only

dp   43   3 Replies

mr3steps

The price of a good that Joe is currently consuming has increased.

The price of a good that Joe is currently consuming has increased.

The price of a good that Joe is currently consuming has increased.
A) Joe has experienced a decrease in purchasing power.
B) Joe will experience a shift in the demand curve of the good whose price has increased.
C) Joe will stop consuming this goo

stfajar   26   3 Replies

rockintictaco

A consumer has been buying 3 magazines and 2 books a month for many months. The price of books then ...

A consumer has been buying 3 magazines and 2 books a month for many months. The price of books then ...

A consumer has been buying 3 magazines and 2 books a month for many months. The price of books then increases. To attain a new optimum, the consumer will
A) buy more magazines because they are now relatively more valuable than they were before, whil

eberk12   60   3 Replies

Turboturner

If a consumer is initially at an optimum, and then the price of X falls, then

If a consumer is initially at an optimum, and then the price of X falls, then

If a consumer is initially at an optimum, and then the price of X falls, then
A) MUX/PX > MUY/PY.
B) MUX/PX < MUY/PY.
C) MUX/PX = MUY/PY.
D) MUX/MUY < PY/PX.

brendatanmy   55   3 Replies

paulinaibarra98

Suppose that a consumer is at an optimum consuming A and B. If the price of A falls, then to get to ...

Suppose that a consumer is at an optimum consuming A and B. If the price of A falls, then to get to ...

Suppose that a consumer is at an optimum consuming A and B. If the price of A falls, then to get to a new equilibrium the consumer must
A) purchase less A and more B.
B) purchase less B and less A.
C) purchase more A.
D) purchase more B.

redesace90   36   3 Replies

kamikazekota

To remain in consumer optimum

To remain in consumer optimum

To remain in consumer optimum
A) a price increase requires an increase in consumption.
B) a price decrease requires an increase in consumption.
C) a price decrease requires a decrease in consumption.
D) prices must remain static.

MsCorrine   26   3 Replies

dianeflunder

If Frank has been consuming 10 tacos per week at a consumer optimum, and the price of tacos falls, ...

If Frank has been consuming 10 tacos per week at a consumer optimum, and the price of tacos falls, ...

If Frank has been consuming 10 tacos per week at a consumer optimum, and the price of tacos falls, how will Frank respond?
A) He will save more income.
B) He will buy more of everything.
C) He will buy more tacos.
D) He will buy more of everythin

jj88888nb   98   3 Replies

Zacellison

Suppose that a consumer is currently at an optimum when consuming goods A and B. Which of the ...

Suppose that a consumer is currently at an optimum when consuming goods A and B. Which of the ...

Suppose that a consumer is currently at an optimum when consuming goods A and B. Which of the following must be TRUE?
A) The total utility from A is equal to the total utility from B.
B) The price of A is equal to the price of B.
C) The marginal u

Ace_AZ   29   3 Replies

Tabitha.davis

When a consumer is at the consumer optimum

When a consumer is at the consumer optimum

When a consumer is at the consumer optimum
A) MUa = MUb = MUc = . . . = MUn.
B) MUa/Pa = MUb/Pb = MUc/Pc = . . . = MUn/Pn = 1.
C) TUa = TUb = TUc = . . . = TUn.
D) MUa/Pa = MUb/Pb = MUc/Pc = . . . = MUn/Pn.

pri   33   3 Replies

smi3

A consumer is buying the optimal amount of goods when

A consumer is buying the optimal amount of goods when

A consumer is buying the optimal amount of goods when
A) the total utility from the purchases on all the goods purchased is the same.
B) the marginal utility from the purchases of all the goods purchased is the same.
C) the marginal utility per la

babesitter09   39   3 Replies

LookshaC4

If the price of A is $3 and the price of B is $5, then, in a consumer optimum

If the price of A is $3 and the price of B is $5, then, in a consumer optimum

If the price of A is $3 and the price of B is $5, then, in a consumer optimum
A) the quantity purchased of B must be 60 percent of the quantity of A purchased.
B) the quantity purchased of B must be 67 percent of the quantity of A purchased.
C) th

twylla01   37   3 Replies

Kstan109

When Bo increases the consumption of Good X and decrease the consumption of Good Y, her marginal utility of

When Bo increases the consumption of Good X and decrease the consumption of Good Y, her marginal utility of

When Bo increases the consumption of Good X and decrease the consumption of Good Y, her marginal utility of
A) X falls and the marginal utility of Y will increase.
B) both X and Y will decrease.
C) X increases and the marginal utility of Y will fa

Fernan1999   62   3 Replies

chrism004cc

John is currently spending all of his income. For the last unit of Good X consumed John gets 20 ...

John is currently spending all of his income. For the last unit of Good X consumed John gets 20 ...

John is currently spending all of his income. For the last unit of Good X consumed John gets 20 utils and for the last unit of Good Y consumed he gets 10 utils. The price of Good X is $10. The price of Good Y is $1. If John wants to maximize his util

A.Jay   43   3 Replies

dearsophia21

The price of hamburgers is $2 and the price of brownies is $4. The consumer has $16 of income. The ...

The price of hamburgers is $2 and the price of brownies is $4. The consumer has $16 of income. The ...

The price of hamburgers is $2 and the price of brownies is $4. The consumer has $16 of income. The consumer is purchasing 3 hamburgers and receiving 20 utils for the last hamburger. He is also purchasing 2 brownies and receiving 40 utils for the last

msee1021   31   3 Replies

kab170

A consumer has spent all of his income on pizza and movies. The price of a piece of pizza is $1 and ...

A consumer has spent all of his income on pizza and movies. The price of a piece of pizza is $1 and ...

A consumer has spent all of his income on pizza and movies. The price of a piece of pizza is $1 and the price of a movie is $6. The marginal utility of the last piece of pizza is 5 and the marginal utility of the last movie is 24. The consumer has
A

emma.locke16   35   3 Replies

sumik

The consumer optimum is defined as

The consumer optimum is defined as

The consumer optimum is defined as
A) the set of goods and services that maximizes marginal utility for each good.
B) the set of goods and services such that the marginal utility of each good equals zero.
C) the set of goods and services that maxi

mewdie   40   3 Replies

paulinaibarra98

According to utility theory, consumer purchase decisions are made such that

According to utility theory, consumer purchase decisions are made such that

According to utility theory, consumer purchase decisions are made such that
A) the value of the ratio of marginal utility to price for the last units purchased and consumed is equal.
B) the difference between the value of the marginal utility of th

vsisto   33   3 Replies

dearsophia21

The price of a hotdog is $1, the price of a movie ticket is $5, and the consumer has $13. A consumer ...

The price of a hotdog is $1, the price of a movie ticket is $5, and the consumer has $13. A consumer ...

The price of a hotdog is $1, the price of a movie ticket is $5, and the consumer has $13. A consumer has purchased 3 hotdogs and two movie tickets, receiving 10 units of utility for the last hotdog and 10 units of utility for the last movie. The set

OkeyDokey   52   3 Replies

avance37

When the marginal utility per dollar of good A exceeds the marginal utility per dollar of good B,

When the marginal utility per dollar of good A exceeds the marginal utility per dollar of good B,

When the marginal utility per dollar of good A exceeds the marginal utility per dollar of good B,
A) the consumer should consume more of good A.
B) the consumer is consuming too much of good A.
C) good B must have a negative marginal utility.
D)

Terabear   50   3 Replies

alpheratz

The consumer optimum (for two goods, A and B) is reached when

The consumer optimum (for two goods, A and B) is reached when

The consumer optimum (for two goods, A and B) is reached when
A) TUA = TUB.
B) MUA = MUB.
C) TUA/PA = TUB/PB.
D) MUA/PA = MUB/PB.

Ace_AZ   44   3 Replies

taneymc

In order to maximize utility, a consumer should allocate money income so that

In order to maximize utility, a consumer should allocate money income so that

In order to maximize utility, a consumer should allocate money income so that
A) the marginal utility of the last unit of each product consumed is greater than the total utility of each product consumed.
B) the total utility derived from each produ

ioannisthomas   39   3 Replies

Eighty8

What is utility and what are its characteristics?

What is utility and what are its characteristics?

What is utility and what are its characteristics?

Laurenrees98   12   3 Replies

nsak

Brad ate four bags of chips at the baseball game. The first bag tasted best, but he found that as he ...

Brad ate four bags of chips at the baseball game. The first bag tasted best, but he found that as he ...

Brad ate four bags of chips at the baseball game. The first bag tasted best, but he found that as he ate more chips the amount of extra satisfaction he was receiving was beginning to fall. This would demonstrate
A) the law of total utility maximizat

shy567   13   3 Replies

brown_02

Increases in total utility from the consumption of a good decrease as more is consumed. This statement is

Increases in total utility from the consumption of a good decrease as more is consumed. This statement is

Increases in total utility from the consumption of a good decrease as more is consumed. This statement is
A) the law of diminishing marginal utility.
B) the law of average utility.
C) the consumer optimum.
D) not consistent with the assumption of

AdamPG14   51   3 Replies

pencils13

As you consume more of a particular commodity, your total level of utility derived from that consumption will

As you consume more of a particular commodity, your total level of utility derived from that consumption will

As you consume more of a particular commodity, your total level of utility derived from that consumption will
A) increase at an increasing rate.
B) increase at a decreasing rate.
C) increase at a constant rate.
D) remain constant.

wiliam789   31   3 Replies

dedricgard