Question 1

Steve is planning to divide his study time between English and calculus.It will take him two hours of study for each extra point in calculus and one hour of study to raise his English score by one point.He should allocate his time so that

Accepted Answer

In order to make a choice that maximizes his overall utility, Steve should allocate his time such that the marginal utility per hour spent on both subjects is equal. This means that the extra benefit he gets from an additional hour of study time in calculus should be the same as the extra benefit he gets from an additional hour of study time in English. Therefore, choice C is the best option.

Question 2

Hamburger is an inferior good.If the price of hamburger increases,

Accepted Answer

The income effect on the demand for hamburger will offset, to some degree, the substitution effect.When the price of hamburger increases, the substitution effect will lead to a decrease in the demand for hamburger. However, the income effect will lead to an increase in the demand for hamburger, as consumers will have less money to spend on other goods and services. The income effect will offset, to some degree, the substitution effect, so the overall effect on the demand for hamburger will be smaller than the substitution effect alone.

Question 3

A technological change that enables a student to learn more French in the same amount of study time

Accepted Answer

The technological change increases the efficiency of learning, allowing the student to gain more knowledge in the same time, thus improving their situation.

Quiz 6: Consumer Choice

Steve is planning to divide his study time between English and calculus.It will take him two hours of study for each extra point in calculus and one hour of study to raise his English score by one point.He should allocate his time so that

Hamburger is an inferior good.If the price of hamburger increases,

A technological change that enables a student to learn more French in the same amount of study time