Consumer preferences
a. do not vary from one consumer to another
b. have little to do with personal tastes and income
c. are not influenced by the utility of goods
d. are individual evaluations of goods and services
e. can be objectively measured and compared across individuals
QUESTION 2Which of the following statements concerning utility is correct?
a. It is possible to precisely measure the utility an individual receives from consuming a particular good or service
b. It is always possible to determine whether Dalene or Juloy gets more utility from consuming two units of the same good
c. The utility of goods can be measured while the same is not true for services
d. Utility is a subjective measure of satisfaction an individual receives from consuming a good or service
e. It is only useful if there is no scarcity
QUESTION 3Which of the following statements cannot be made regarding consumer preferences?
a. Pat enjoys her second cotton candy less than her first.
b. Bill enjoys his second cotton candy as much as the first.
c. Arnie enjoys two cotton candies more than one cotton candy.
d. Arnie enjoys two cotton candies more than Pat enjoys one cotton candy.
e. Bill and Arnie enjoy their second cotton candy less than they do their first.
QUESTION 4Which of the following is true of units of utility?
a. Each unit is worth 1.
b. They cannot be compared across consumers.
c. They apply to goods but not to services.
d. They do not exist for very wealthy individuals.
e. They are negative for inferior goods.
QUESTION 5Utility is
a. easily measured because all people derive the same utility from consumption
b. easily measured because it is an objective concept
c. easily measured because it is a subjective concept
d. hard to measure because it is a subjective concept
e. hard to measure because it is an objective concept
QUESTION 6All of the following are examples of a constant-elasticity demand curve except a(n)
a. perfectly elastic demand curve
b. linear demand curve with a slope of -4
c. perfectly inelastic demand curve
d. unit-elastic demand curve
e. vertical demand curve
QUESTION 7Income elasticity of demand is greater than zero for all of the following except
a. restaurant meals
b. beer
c. owner-occupied housing
d. food
e. rental housing
QUESTION 8The ability of increasing quantity supplied in response to a higher price is identical across industries.
a. True
b. False
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