Consumer Behavior & Microeconomics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1.

Choco Company Ltd sells chocolates and has noted a decrease in the demand for chocolate across the board due to a dissatisfaction in the taste.

How should the company react?

Question 2 2. How can producers use Engel curves?

Question 3 3. Which would have the biggest effect on a market demand curve for a whole city?

Question 4 4. What is the definition of a good where there is an inverse relationship between changes in income and a demand curve?

Question 5 5. Which is an UNLIKELY effect of a producer only taking into consideration their own marginal rate of substitution and not that of their clients?

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Question 6 6. What percentage of the United States economy is supported by consumer spending?

Question 7 7. Frank goes to the Honda dealership to look for a new car. Not satisfied, he then goes to the Subaru dealership to view their inventory. How would an economist define the fact that Frank prefers Subarus over Hondas?

Question 8 8. Are all goods necessarily related and subject to an indifference curve?

Question 9 9.

Maggy adored eating lollipops until she suddenly got sick and decided not to eat any more lollipops.

Determine what will happen to the market demand curve for lollipops in that area.

Question 10 10. Define optimization.

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Question 11 11. What occurs in the economy when the market demand curve and the supply curve intercept?

Question 12 12. Good A and Good B are complementary goods. If the price of Good A rises, what is likely to happen to Good B?

Question 13 13. What would explain why a consumer prefers good 1 to good 2, and prefers good 2 to good 3 and thus should prefer good 1 to good 3?

Question 14 14. What assumption focuses on consumer choices that result in different outcomes such as happiness, satisfaction, or utility?

Question 15 15. Producers should focus on utility for all of the following reasons, EXCEPT:

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Question 16 16. As a consumer's income increases, he or she will purchase more _____, such as _____.

Question 17 17. If you go to a coffee shop to buy coffee and end up also buying a cake pop, the cake pop is which kind of good?

Question 18 18. In microeconomics, which of the following is considered a consumer?

Question 19 19. The following items are always present in Margaret's handbag: Prescription medicine, toothpicks, chewing gum, and a pen. Which item would you expect to have the lowest marginal rate of substitution?

Question 20 20. All of the following are normal goods EXCEPT:

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Question 21 21. How is the total satisfaction of consuming a good or service described?

Question 22 22. Why do businesses care about microeconomic assumptions about consumer behavior?

Question 23 23. When is it rational to throw money in the air with abandon?

Question 24 24. Why should producers be smart consumers when it comes to the use of resources?

Question 25 25. Susan is analyzing a demand curve for goods. She observes that the curve shifts to the right and increases to show a direct relationship. What can Susan conclude about this curve?

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Question 26 26. Louie is a guitar manufacturer. In which of the following examples is he maximizing utility as a producer?

Question 27 27. Who would you expect to get the MOST use out of a market demand curve for bottled water?

Question 28 28. Which of these scenarios are indifference curves used to measure?

Question 29 29. Why is the real equilibrium point difficult to find?

Question 30 30. ABC Clothing primarily sells shirts and pants, but they are across the street from XYZ Clothing who also sells primarily shirts and pants. How could ABC help their consumers begin to prefer their brand to XYZ?

Consumer Behavior & Microeconomics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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