ECN 211 ASU FINAL EXAM STUDY GUIDE
2026 COMPLETE SOLVED QUESTIONS
100% CORRECT
◉To increase labor in the long run. Answer: a firm can increase or
decrease output in the run
◉Carter spends his entire budget on pizza and Pepsi. He maximizes
his utility when he allocates his entire available budget and buys
pizza and Pepsi so that the. Answer: marginal utility per dollar from
pizza is equal to the marginal utility per dollar from Pepsi.
◉Based on the figure above, which of the following would lead the
budget line to change to slant up?. Answer: a fall in the price of
water
◉Brenda's marginal utility per dollar from the second hamburger is
20. Her marginal utility from the third hamburger would be.
Answer: less than 20.
◉Timmy makes $100 per week as a taxidermist. He spends all this
income to buy pizza and hair gel. The price of a pizza is $10 and the
,price of a bottle of hair gel is $4. If Timmy buys 5 bottles of hair gel,
then he buys ________ pizzas.. Answer: 8
◉If a consumer has allocated his or her budget and found the
combination of goods where all marginal utilities divided by price
are equal, what would happen if the consumer were forced to
consume some other combination of goods? The consumer. Answer:
will definitely have lower total utility.
◉Sheryl is maximizing her utility. She notices that her marginal
utility from the last package of bubble gum consumed is greater than
her marginal utility from the last package of mints consumed. This
result means that the. Answer: price of a package of gum is greater
than the price of a package of mints.
◉Sam's budget is $60.00. The combinations of gasoline and coffee
along one of Sam's indifference curves are combinations. Answer:
among which he is indifferent
◉Which of the following is true if Clarice is at her consumer
equilibrium?
i. Clarice is on her budget line.
ii. Clarice is on her highest attainable indifference curve.
iii. Clarice is dividing her budget equally across all goods.. Answer: i
and ii
, ◉The slope of the budget line shows. Answer: the opportunity cost
of the good measured along the x-axis.
◉Diminishing marginal utility means that. Answer: marginal utility
decreases as consumption increases.
◉Why does the paradox of value between diamonds and water
arise?. Answer: because water has a low price and a low marginal
utility, while diamonds have a high price and a high marginal utility
◉Sue consumes oysters and clams. Pounds of oysters are measured
on the y-axis and pounds of clams on the x-axis. If the slope of Sue's
budget line is 5 pounds of oysters per pound of clams, Sue must.
Answer: give up 5 pounds of oysters to obtain 1 pound of clams.
◉An increase in a consumer's budget. Answer: shifts the budget line
outward and does not change its slope.
◉Assume you are in a store looking at a shirt you want. You expect
to buy the shirt until you look at the price, then you decide the shirt
is not a good buy. How can your decision be viewed in economic
terms?. Answer: The shirt's marginal utility divided by price was too
low compared to other goods.
2026 COMPLETE SOLVED QUESTIONS
100% CORRECT
◉To increase labor in the long run. Answer: a firm can increase or
decrease output in the run
◉Carter spends his entire budget on pizza and Pepsi. He maximizes
his utility when he allocates his entire available budget and buys
pizza and Pepsi so that the. Answer: marginal utility per dollar from
pizza is equal to the marginal utility per dollar from Pepsi.
◉Based on the figure above, which of the following would lead the
budget line to change to slant up?. Answer: a fall in the price of
water
◉Brenda's marginal utility per dollar from the second hamburger is
20. Her marginal utility from the third hamburger would be.
Answer: less than 20.
◉Timmy makes $100 per week as a taxidermist. He spends all this
income to buy pizza and hair gel. The price of a pizza is $10 and the
,price of a bottle of hair gel is $4. If Timmy buys 5 bottles of hair gel,
then he buys ________ pizzas.. Answer: 8
◉If a consumer has allocated his or her budget and found the
combination of goods where all marginal utilities divided by price
are equal, what would happen if the consumer were forced to
consume some other combination of goods? The consumer. Answer:
will definitely have lower total utility.
◉Sheryl is maximizing her utility. She notices that her marginal
utility from the last package of bubble gum consumed is greater than
her marginal utility from the last package of mints consumed. This
result means that the. Answer: price of a package of gum is greater
than the price of a package of mints.
◉Sam's budget is $60.00. The combinations of gasoline and coffee
along one of Sam's indifference curves are combinations. Answer:
among which he is indifferent
◉Which of the following is true if Clarice is at her consumer
equilibrium?
i. Clarice is on her budget line.
ii. Clarice is on her highest attainable indifference curve.
iii. Clarice is dividing her budget equally across all goods.. Answer: i
and ii
, ◉The slope of the budget line shows. Answer: the opportunity cost
of the good measured along the x-axis.
◉Diminishing marginal utility means that. Answer: marginal utility
decreases as consumption increases.
◉Why does the paradox of value between diamonds and water
arise?. Answer: because water has a low price and a low marginal
utility, while diamonds have a high price and a high marginal utility
◉Sue consumes oysters and clams. Pounds of oysters are measured
on the y-axis and pounds of clams on the x-axis. If the slope of Sue's
budget line is 5 pounds of oysters per pound of clams, Sue must.
Answer: give up 5 pounds of oysters to obtain 1 pound of clams.
◉An increase in a consumer's budget. Answer: shifts the budget line
outward and does not change its slope.
◉Assume you are in a store looking at a shirt you want. You expect
to buy the shirt until you look at the price, then you decide the shirt
is not a good buy. How can your decision be viewed in economic
terms?. Answer: The shirt's marginal utility divided by price was too
low compared to other goods.
