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

37

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, 7:26 AM

State Finished
Completed on Friday, 2 September 2022, 7:37 AM
Time taken 11 mins 1 sec
Grade 10 out of 10 (100%)

Question 1 Joanna is deciding between consuming Good X and Good Y. At her current level of consumption, her marginal utility per dollar
Correct for Good X is greater than the marginal utility per dollar for Good Y. To achieve the consumer optimum, Joanna needs to 
Mark 1 out of 1
Select one:
a. consume more of both Good X and Good Y until the marginal utility per dollar for Good Y is greater than the marginal
utility for Good X. 

b. consume more of Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good
X. 

c. consume more of Good X and possibly less of Good Y until the marginal utilities per dollar for Good X and Good !
Y are equal. 

d. consume more of Good X until the marginal utility per dollar for Good Y is greater than the marginal utility for Good
X. 

The correct answer is: consume more of Good X and possibly less of Good Y until the marginal utilities per dollar for Good
X and Good Y are equal. 

Question 2 A relatively new area in the field of economics called ________ economics enables us to capture a wider range of human
Correct motivations than the rational-agent model alone allows. 
Mark 1 out of 1
Select one:
a. labour 

b. behavioural  !

c. business-cycle 

d. financial 

The correct answer is: behavioural 

Question 3 Yen has eaten a lot of sushi in the past few years. Recently, she realized that sushi no longer brings her the same satisfaction,
Correct with her utils falling from 12 to 8 per piece. At the same time, Yen’s favorite sushi bar has raised prices from $2 to $3 per
Mark 1 out of 1 piece. What happens to Yen’s marginal utility per dollar spent? 

Select one:
a. It stays the same. 

https://lms.jic.ac.id/mod/quiz/review.php?attempt=125878&cmid=90137 Page 1 of 4
HOMEWORK QUIZ 10- Consumer choice and behavioural economics: Attempt review 02/09/22 07.37

b. It decreases.  !

c. The rate of change decreases. 

d. It increases. 

The correct answer is: It decreases. 

Question 4 When comparing two goods for purchase, it is useful to acknowledge the marginal utility and the dollar price. The optimizing
Correct decision requires choosing the good with the 
Mark 1 out of 1
Select one:
a. higher total utility per dollar. 

b. higher marginal utility per dollar.  !

c. higher marginal utility. 

d. equivalent marginal and dollar prices. 

The correct answer is: higher marginal utility per dollar. 

Question 5 A game requires a $30 wager on the flip of a coin and promises $50 if you guess correctly and $0 if you guess incorrectly.
Correct This game has a ___________ expected value of the gamble because the expected value of the earnings is ___________ the
Mark 1 out of 1 wager. 

Select one:
a. positive; greater than 

b. positive; less than 

c. negative; greater than 

d. negative; less than  !

The correct answer is: negative; less than 

Question 6 The substitution effect and the real-income effect are two effects that happen when 
Correct

Mark 1 out of 1 Select one:

a. a price changes.  !

b. total utility decreases. 

c. marginal utility decreases. 

d. marginal utility increases. 

The correct answer is: a price changes. 

Question 7 If the price of a good increases, the marginal utility per dollar spent ________ and consumers buy ________ of the good. 
Correct

https://lms.jic.ac.id/mod/quiz/review.php?attempt=125878&cmid=90137 Page 2 of 4
HOMEWORK QUIZ 10- Consumer choice and behavioural economics: Attempt review 02/09/22 07.37

Correct

Mark 1 out of 1 Select one:

a. increases; more 

b. decreases; more 

c. remains the same; less 

d. decreases; less  !

The correct answer is: decreases; less 

Question 8 When the ratio at which two goods are consumed changes because of a relative price change, economists call it 
Correct

Mark 1 out of 1 Select one:

a. marginal utility. 

b. the real-income effect. 

c. the substitution effect.  !

d. diminishing marginal utility. 

The correct answer is: the substitution effect. 

Question 9 Which of the following best defines diminishing marginal utility? 

Correct

Mark 1 out of 1 Select one:

a. Diminishing marginal utility is the combination of goods and services that maximizes utility for a given income. 

b. Diminishing marginal utility is the additional satisfaction derived from consuming one more unit of a good or
service. 

c. Diminishing marginal utility occurs when a consumer buys more of a good as a result of a relative price change. 

d. Diminishing marginal utility occurs when the additional utility provided by one extra unit of a good declines as !
consumption increases. 

The correct answer is: Diminishing marginal utility occurs when the additional utility provided by one extra unit of a good
declines as consumption increases. 

Question 10 Marginal utility 

Correct

Mark 1 out of 1 Select one:

a. is the additional satisfaction derived from consuming one more unit of a good or service.  !

b. occurs when a consumer buys more of a good as a result of a relative price change. 

c. occurs when total utility declines as consumption increases. 

d. occurs when there is a change in purchasing power as a result of a change in the price of a good. 

The correct answer is: is the additional satisfaction derived from consuming one more unit of a good or service. 

https://lms.jic.ac.id/mod/quiz/review.php?attempt=125878&cmid=90137 Page 3 of 4
HOMEWORK QUIZ 10- Consumer choice and behavioural economics: Attempt review 02/09/22 07.37

◀︎ 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=125878&cmid=90137 Page 4 of 4