Econ 206 Oertel Practice Exam correctly
answered already passed
Robin Spends their entire weekly budget on burritos, which cost $7 each, and bubble tea, which
costs $3 per order. At their current weekly consumption levels of these good, the marginal
utility of their last burrito was 1,200, and the marginal utility of their last bubble tea was 800.
What can we conclude from this info.?
A. Robin's utility would increase if they consumed more burritos and less bubble tea.
B. Robin's utility would increase if they consumed fewer burritos and more bubble tea.
C. Robins utility would be maximized if they consumed only bubble tea.
D. Robins utility would be maximized if they consumed only burritos. - correct answer ✔✔B.
Robin's utility would increase if they consumed fewer burritos and more bubble tea.
Xin consumes a lot of tea, which is a normal good for this consumer. When the price of tea
increases...
A. the income effect causes him to consumer more tea
B. the substitution effect causes him to consume more tea
C. his income and substitution effects work in opposite directions
D. both income and substitution effects cause him to consume less tea. - correct answer ✔✔D.
both income and substitution effects cause him to consume less tea.
Suppose the MP of Labor is below (less than) its Avg. Product. Using more labor will...
A. reduce its Total Product
B. raise its Avg. Product
C. raise its Marg. Product
D. reduce its Avg. Product - correct answer ✔✔D. reduce its Avg. Product
answered already passed
Robin Spends their entire weekly budget on burritos, which cost $7 each, and bubble tea, which
costs $3 per order. At their current weekly consumption levels of these good, the marginal
utility of their last burrito was 1,200, and the marginal utility of their last bubble tea was 800.
What can we conclude from this info.?
A. Robin's utility would increase if they consumed more burritos and less bubble tea.
B. Robin's utility would increase if they consumed fewer burritos and more bubble tea.
C. Robins utility would be maximized if they consumed only bubble tea.
D. Robins utility would be maximized if they consumed only burritos. - correct answer ✔✔B.
Robin's utility would increase if they consumed fewer burritos and more bubble tea.
Xin consumes a lot of tea, which is a normal good for this consumer. When the price of tea
increases...
A. the income effect causes him to consumer more tea
B. the substitution effect causes him to consume more tea
C. his income and substitution effects work in opposite directions
D. both income and substitution effects cause him to consume less tea. - correct answer ✔✔D.
both income and substitution effects cause him to consume less tea.
Suppose the MP of Labor is below (less than) its Avg. Product. Using more labor will...
A. reduce its Total Product
B. raise its Avg. Product
C. raise its Marg. Product
D. reduce its Avg. Product - correct answer ✔✔D. reduce its Avg. Product
