Microeconomics
2nd Edition
ISBN: 9780073375854
Author: B. Douglas Bernheim, Michael Whinston
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 1, Problem 5DQ
To determine
Classify the statement as a model or not a model.
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Students have asked these similar questions
What role does utility play in the economic model of consumer behavior?
When modeling consumer behavior, utility
A. identifies the consumer who receives the most satisfaction from consuming a particular set of goods and services.
B. provides an objective measure of satisfaction from consuming a particular set of goods and services in units called "utils."
C. identifies the combination of goods and services that is least expensive.
D. identifies the combination of goods and services that can be produced most efficiently.
E. reflects the enjoyment a consumer receives from consuming a particular set of goods and services.
O O
(9)
What determines the utility an individual receives from consuming a good?
Select one:
a. The individual’s own preferences.
b. The demand and supply curves for that good.
c. The producers conducting customer feedback surveys of that good and the feedback provided.
(10)
Denzel bought headphones two months ago, Solo2 Beats by Dre, for $130. He gives them to his little brother and goes online to buy another for himself but they are now $160. What is the percentage change in the headphone’s price?
Select one:
a. 23%
b. 30%
c. 21%
50. Budget constraints provide a visual image the represents what a person can afford, given the price of the two goods and his budget amount.
Group of answer choices
A. True
B. False
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- Which of the following scenarios best depicts a rational buyer? Select one: a. Damien chooses to buy a sandwich for $5 when the marginal benefit of the sandwich to him is $7. b. Darwin ignores factual information given to him and makes a decision based only on how feels that day. c. Mary values a bag of salad at $2, but she buys the bag of salad when the price is $4. d. John walks into a grocery store and purchases monthly groceries without paying attention to the prices of groceries.arrow_forwardWhat is "bounded rationality"? a. Gathering all necessary information before making a decision. b. People only make choices that gives non-negative utility. c. Limits on information, time, and abilities might prevent people from seeking out the best possible outcome. d. Human beings are often restricted/forced to make only rational decisions.arrow_forwardAmber bakes muffins and cookies to sell at the market. If she bakes more cookies and fewer muffins, her marginal Question content area bottom Part 1 A. benefit of baking muffins increases. B. cost of baking muffins increases. C. cost of baking muffins decreases. Your answer is correct. D. cost of baking cookies decreases. E. benefit of baking cookies increases.arrow_forward
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- Do consumers always make rational consumer decisions when buying economic goods?arrow_forwardExplain:a. Before economic growth, there were too few goods; after growth, there is too little time.b. It is irrational for an individual to take the time to be completely rational in economic decision making.c. Telling Santa what you want for Christmas makes sense in terms of utility maximization.arrow_forwardPerceptual Filters depend on which of the following? D. All of the Above A. Formal Education B. Practical Life Experience C. Reasoning Abilityarrow_forward
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