HOMEWORK QUIZ 10- Consumer choice and behavioural economics: Attempt review 02/09/22 07.

26

Dashboard / My courses / DIPLOMA / T2-2022 / MCD2020 Microeconomics - Trimester 2 - 2022 / WEEK TEN
/ HOMEWORK QUIZ 10- Consumer choice and behavioural economics

Started on Friday, 2 September 2022, 7:10 AM

State Finished
Completed on Friday, 2 September 2022, 7:25 AM
Time taken 15 mins
Grade 7 out of 10 (70%)

Question 1 Total utility ________ at a(n) ________ rate when marginal utility decreases. 
Correct

Mark 1 out of 1 Select one:

a. increases; constant 

b. decreases; increasing 

c. decreases; constant 

d. increases; decreasing  !

The correct answer is: increases; decreasing 

Question 2 American consumers make thousands of purchasing decisions each year. These decisions 
Incorrect

Mark 0 out of 1 Select one:

a. do not depend on the consumers’ budgets. 

b. all involve trade-offs. 

c. are always consistent with economic theory. 

d. always maximize utility.  "

The correct answer is: all involve trade-offs. 

Question 3 The change in total utility due to one additional unit consumed of a good is the 
Correct

Mark 1 out of 1 Select one:

a. slope of the indifference curve. 

b. smallest unit of utility. 

c. marginal utility.  !

d. diminishing marginal utility. 

The correct answer is: marginal utility. 

https://lms.jic.ac.id/mod/quiz/review.php?attempt=125877&cmid=90137#question-138804-6 Page 1 of 3
HOMEWORK QUIZ 10- Consumer choice and behavioural economics: Attempt review 02/09/22 07.26

Question 4 Lynnette has to choose between eating Thai food or Peruvian food. The two kinds of food cost the same. Which of the
Correct following equations, where MU is marginal utility and U is total utility, will lead to the optimal level of consumption? 
Mark 1 out of 1
Select one:
a. MUThai < MUPeruvian 

b. UThai = UPeruvian 

c. MUThai = MUPeruvian  !

d. UThai > UPeruvian 

The correct answer is: MUThai = MUPeruvian 

Question 5 Erico is operating a concession stand at a swim meet. He plans to sell lemonade for $3.00 but is unsure of the price to charge
Correct for potato chips. A friend of Erico’s says he gets 36 utils of satisfaction from lemonade and 27 utils from chips. If Erico wants
Mark 1 out of 1 patrons like his friend to find lemonade and chips to be an equally good value, what price should Erico charge for chips? 

Select one:
a. $2.25  !

b. $4.50 

c. $2.70 

d. $3.00 

The correct answer is: $2.25 

Question 6 An important source of human behaviour bias in intertemporal decision-making comes from 

Incorrect

Mark 0 out of 1 Select one:

a. resistance to change.  "

b. fairness. 

c. limited reasoning. 

d. temptation. 

The correct answer is: temptation. 

Question 7 When a consumer maximizes utility, economists say that he or she has 
Correct

Mark 1 out of 1 Select one:

a. optimized.  !

b. efficiently allocated. 

c. rationalized. 

d. become satisfied. 

https://lms.jic.ac.id/mod/quiz/review.php?attempt=125877&cmid=90137#question-138804-6 Page 2 of 3
HOMEWORK QUIZ 10- Consumer choice and behavioural economics: Attempt review 02/09/22 07.26

The correct answer is: optimized. 

Question 8 ________ occurs when a consumer buys more of a good as a result of a relative price change. 
Incorrect

Mark 0 out of 1 Select one:

a. Diminishing marginal utility 

b. The substitution effect 

c. The consumer optimum 

d. The real-income effect  "

The correct answer is: The substitution effect 

Question 9 A choice that does not follow the assumption of rational behaviour is 
Correct

Mark 1 out of 1 Select one:

a. paying more to use a credit card with no associated rewards than you would if you used cash. 

b. refusing to leave a movie that brings no pleasure. 

c. complaining about lack of time while you play solitaire, a game you prefer less than your other options for spending
your time. 

d. all of the above. None of the behaviours listed follow the assumption of rational behaviour.  !

The correct answer is: all of the above. None of the behaviours listed follow the assumption of rational behaviour. 

Question 10 A typical diminishing marginal utility curve may be drawn as a(n). 

Correct

Mark 1 out of 1 Select one:

a. upward-sloping line 

b. upward-sloping curve 

c. horizontal line 

d. downward-sloping line  !

The correct answer is: downward-sloping line 

#
◀︎ IN CLASS QUIZ 10 - Consumer
Jump to... Week 10 - Tutorial Worksheets ▶︎
choice and behavioural economics

https://lms.jic.ac.id/mod/quiz/review.php?attempt=125877&cmid=90137#question-138804-6 Page 3 of 3