Foundations of economics 6th by parkin ch13 clicker questions

Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem © 2013 Pearson Consumer Choice and Demand 13 CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem Checkpoint 13.1 Checkpoint 13.2 Checkpoint 13.3 Question Question 11 Question Question 44 Question Question 88 Question Question 22 Question Question 55 Question Question 99 Question Question 33 Question Question 66 Question Question 10 10 Question Question 77 © 2013 Pearson CHECKPOINT 13.1 Question Linda has $10 a month to spend on ice cream and chocolate bars If the price of ice cream is $2 a cone and the price of a chocolate bar is $1, one point on Linda’s budget line is _ A B C D E cones and chocolate bars cone and chocolate bars cones and chocolate bar cones and 10 chocolate bars cones and chocolate bars © 2013 Pearson CHECKPOINT 13.1 Question If a consumer’s budget line rotates inward and becomes steeper, then the A consumer’s budget has decreased B consumer’s budget has increased C price of one of the goods has decreased D price of one of the goods has increased E prices of both goods must have decreased © 2013 Pearson CHECKPOINT 13.1 Question A relative price of a good is the A B C D E price of a substitute of that good price of a related good price of the good divided by the price of another good absolute price of a good price of one good multiplied by the price of another © 2013 Pearson CHECKPOINT 13.2 Question The price of a piece of sushi is $3 Cynthia’s total utility from one piece is 30, and her total utility from pieces is 51, so her marginal utility from the second piece is A B C D E 17 10 51 21 © 2013 Pearson CHECKPOINT 13.2 Question A marketable pollution permit _ A allows firms to pollute all they want without any cost B allows firms to buy and sell the right to pollute at government controlled prices C eliminates pollution entirely D allows firms to buy and sell the right to pollute E is the Coase solution to the pollution problem © 2013 Pearson CHECKPOINT 13.2 Question Jen likes pizza and hotdogs If her marginal utility per dollar from pizza is and from hotdogs is 5, Jen A is maximizing her total utility B can increase her total utility by buying more hotdogs and less pizza C can increase her total utility by buying more pizza and fewer hotdogs D is maximizing her marginal utility E must increase her income to reach a consumer equilibrium © 2013 Pearson CHECKPOINT 13.2 Question Hank consumes only Mountain Dew and pizza If Hank decides that the total utility he gets from all amounts of Mountain Dew and pizza is twice what it was before, then Hank’s demand for A each good will not change B one of the goods doubles C each good will halve D one of the goods will have E each good doubles © 2013 Pearson CHECKPOINT 13.3 Question As Betty consumes more of a good, her marginal utility of an additional unit , so she is willing to pay for an additional unit of the good A decreases; less B increases; less C decreases; more D increases; more E does not change; less © 2013 Pearson CHECKPOINT 13.3 Question One reason why water is cheap compared to diamonds is because the _ A marginal utility of water is enormous B marginal utility of water is small C total utility of water is enormous D total utility of water is small E total utility of water and diamonds are equal, but the marginal utility of water is much lower than the marginal utility of diamonds © 2013 Pearson CHECKPOINT 13.3 Question 10 The paradox of value refers to the A utility maximizing rule B fact that water is vital but cheap while diamonds are relatively useless but expensive C fact that consumers have different preferences and utility schedules D law of demand E issue of why the consumer surplus from water equals the consumer surplus from diamonds © 2013 Pearson ... E price of a substitute of that good price of a related good price of the good divided by the price of another good absolute price of a good price of one good multiplied by the price of another... C price of one of the goods has decreased D price of one of the goods has increased E prices of both goods must have decreased © 2013 Pearson CHECKPOINT 13.1 Question A relative price of a good... _ A marginal utility of water is enormous B marginal utility of water is small C total utility of water is enormous D total utility of water is small E total utility of water and diamonds are