? 1,Which of the following explains why
automobile engines are smaller in England
than in the United States?
a,Income is higher in the United States.
b,Income is higher in England.
c,The price of gasoline is higher in the
United States.
d,The price of gasoline is higher in England.
e,The gasoline tax in England is relatively
low.
2,Which of the following describes the law
of diminishing marginal utility?
a,The more you consume,the happier you
are.
b,As you consume more,your level of
happiness falls.
c,As prices fall,you enjoy consuming more.
d,You enjoy the first units you consume
more than later units.
e,An increase in income increases your
happiness.
3,Which of the following happens as a
result of an increase in income?
a,Demand is stimulated.
b,Prices fall.
c,Total utility decreases.
d,Marginal utility increases.
e,all of the above
4,If the price of new cars falls,what
will happen to the demand for used cars?
a,remain the same
b,increase
c,decrease
d,shift to the right
e,become more inelastic
5,The fact that a price change makes
consumers either poorer or richer in real
terms describes which of the following?
a,The income effect
b,The substitution effect
c,Diminishing marginal utility
d,Consumer surplus
e,The law of demand
6,When the price of a good goes up,
other goods become relatively more
attractive describes which of the
following?
a,The income effect
b,The substitution effect
c,Diminishing marginal utility
d,Consumer surplus
e,The law of demand
7,The difference between your
reservation price and the actual price
paid for a good is your
a,marginal utility.
b,consumer surplus.
c,income effect.
d,demand price.
e,excess demand.
8,The consumer surplus for a good
purchased at the equilibrium price equals
a,zero.
b,infinity.
c,the price paid for the good.
d,the demand for the good.
e,total revenue.
9,Why do the wealthy in Manhattan live in
smaller houses than the wealthy in Seattle?
a,There are no small houses in Seattle.
b,The income effect.
c,The price elasticity of demand for houses is
different.
d,The substitution effect.
e,New Yorkers have a higher consumer
surplus.
automobile engines are smaller in England
than in the United States?
a,Income is higher in the United States.
b,Income is higher in England.
c,The price of gasoline is higher in the
United States.
d,The price of gasoline is higher in England.
e,The gasoline tax in England is relatively
low.
2,Which of the following describes the law
of diminishing marginal utility?
a,The more you consume,the happier you
are.
b,As you consume more,your level of
happiness falls.
c,As prices fall,you enjoy consuming more.
d,You enjoy the first units you consume
more than later units.
e,An increase in income increases your
happiness.
3,Which of the following happens as a
result of an increase in income?
a,Demand is stimulated.
b,Prices fall.
c,Total utility decreases.
d,Marginal utility increases.
e,all of the above
4,If the price of new cars falls,what
will happen to the demand for used cars?
a,remain the same
b,increase
c,decrease
d,shift to the right
e,become more inelastic
5,The fact that a price change makes
consumers either poorer or richer in real
terms describes which of the following?
a,The income effect
b,The substitution effect
c,Diminishing marginal utility
d,Consumer surplus
e,The law of demand
6,When the price of a good goes up,
other goods become relatively more
attractive describes which of the
following?
a,The income effect
b,The substitution effect
c,Diminishing marginal utility
d,Consumer surplus
e,The law of demand
7,The difference between your
reservation price and the actual price
paid for a good is your
a,marginal utility.
b,consumer surplus.
c,income effect.
d,demand price.
e,excess demand.
8,The consumer surplus for a good
purchased at the equilibrium price equals
a,zero.
b,infinity.
c,the price paid for the good.
d,the demand for the good.
e,total revenue.
9,Why do the wealthy in Manhattan live in
smaller houses than the wealthy in Seattle?
a,There are no small houses in Seattle.
b,The income effect.
c,The price elasticity of demand for houses is
different.
d,The substitution effect.
e,New Yorkers have a higher consumer
surplus.
