Question 1

Marginal utility can be thought of as&#10;A)the incremental change in a person's total satisfaction level from the buying of a good.&#10;B)the total change in satisfaction from buying a good.&#10;C)the additional cost of that next good purchased.&#10;D)the opportunity cost of buying the next good.

Accepted Answer

Marginal utility measures the amount of additional satisfaction a consumer derives from consuming an additional unit of a good, and thus it is the incremental change in a person's total satisfaction level from the buying of a good.

Question 2

In economics,utility is defined as&#10;A)the want-satisfying power of a good or service.&#10;B)the usefulness of a good or service.&#10;C)the utilitarian value of a good or service.&#10;D)the objective measure of the desirability of a good or service.

Accepted Answer

Utility is the measure of the satisfaction or pleasure that a consumer derives from a good or service. It is not an objective measure and can vary from person to person. Therefore, option D is incorrect. While option B is close, it does not fully capture the concept of want-satisfying power, which is a defining characteristic of utility. Option C is also incorrect as it implies that there is a single utilitarian value to a good or service, which is not necessarily the case.

Question 3

To calculate marginal utility,divide the change in total utility by&#10;A)the number of units consumed.&#10;B)the price of the product.&#10;C)the change in the number of units consumed.&#10;D)the consumer's subjective level of preference.

Accepted Answer

Marginal utility is the change in total utility obtained from consuming one additional unit of a good. Therefore, to calculate marginal utility, we need to divide the change in total utility by the change in the number of units consumed. Choice A is incorrect because it divides the change in total utility by the total number of units consumed, which is not the appropriate calculation for marginal utility. Choice B is incorrect because the price of the product is not relevant to the calculation of marginal utility. Choice D is incorrect because the consumer's subjective level of preference cannot be quantified and is not relevant to the calculation of marginal utility.

Question 4

Utility analysis helps economists understand&#10;A)how people make decisions about what they buy and how much.&#10;B)how to eliminate opportunity costs.&#10;C)how to eliminate scarcity.&#10;D)none of the above.

Accepted Answer

Utility analysis is the study of how individuals make decisions about what goods and services to consume, and how much of each. Therefore, A is the correct answer. B and C are incorrect as utility analysis does not eliminate opportunity costs or scarcity, but rather, seeks to understand human decision-making in the face of these economic realities.

Question 5

If total utility is decreasing,then marginal utility is&#10;A)negative.&#10;B)positive.&#10;C)zero.&#10;D)increasing.

Accepted Answer

Total utility can only decrease if the additional units of the good consumed bring less pleasure or satisfaction than the previous unit. This means that the marginal utility of each additional unit is negative, indicating a decrease in satisfaction.

Question 6

The amount of pleasure or satisfaction derived from consumption of a good is called&#10;A)elasticity.&#10;B)utility.&#10;C)consumer surplus.&#10;D)demand.

Accepted Answer

The amount of pleasure or satisfaction derived from consumption of a good is known as utility. Elasticity refers to the responsiveness of demand or supply to changes in price or income. Consumer surplus is the difference between the price a consumer is willing to pay and the actual price they pay for a good or service. Demand refers to the quantity of a good or service that consumers are willing and able to buy at a given price.

Question 7

Suppose that Usher derives 45 utils of total utility from eating 6 hotdogs and 55 utils of total utility from eating 7 hotdogs.What is Usher's marginal utility from eating the 7th hotdog?&#10;A)10&#10;B)45&#10;C)55&#10;D)100

Accepted Answer

The answer of Suppose that Usher derives 45 utils of...

Question 8

In economic utility analysis,consumer tastes and preferences are assumed&#10;A)to be determined by income.&#10;B)to be influenced by the prices of goods.&#10;C)given and stable for an individual.&#10;D)given but rapidly changeable.

Accepted Answer

Consumer tastes and preferences are assumed to be given and stable for an individual in economic utility analysis. While they can change over time, for the purpose of economic analysis, they are assumed to be stable for a period of time. Income and prices of goods may influence consumer behavior, but they are not assumed to determine or change a person's tastes and preferences.

Question 9

When economists refer to people making decisions at the margin,they mean that we compare ________ benefits with ________ costs.&#10;A)total; total&#10;B)total; incremental&#10;C)additional; additional&#10;D)additional; marginal

Accepted Answer

Economists use the concept of making decisions at the margin to describe how individuals compare the additional benefits of an action to its additional costs to make decisions.

Question 10

The concept of marginality is important in economics because&#10;A)individuals make decisions at the margin.&#10;B)marginal decisions indicate a lack of importance.&#10;C)individuals make decisions based on tastes only.&#10;D)large expenditures are the only factor influencing consumption.

Accepted Answer

Marginality refers to making decisions at the margin, or the incremental cost or benefit of a decision. Individuals typically do not make decisions based on total cost or benefit, but rather on the additional cost or benefit of a specific action. This is a key principle in microeconomics and is important for understanding how individuals and firms make decisions. Choices B, C, and D are incorrect because they do not accurately describe the role of marginality in economics.

Question 11

Which of the following is NOT true of utility?&#10;A)It represents the want-satisfying power of a good.&#10;B)It is measured using a representative unit called a util.&#10;C)The utility that a good provides depends on a consumer's preferences.&#10;D)Utility can be measured objectively.

Accepted Answer

The answer of Which of the following is NOT true...

Question 12

Which English philosopher set out to develop an arithmetic formula for measuring happiness and along the way invented the util?&#10;A)John Maynard Keynes&#10;B)Milton Friedman&#10;C)Jeremy Bentham&#10;D)Adam Smith

Accepted Answer

The answer of Which English philosopher set out to develop...

Question 13

If total utility is increasing,then marginal utility is&#10;A)negative.&#10;B)positive.&#10;C)zero.&#10;D)decreasing.

Accepted Answer

The answer of If total utility is increasing,then marginal utility...

Question 14

A representative unit that measures the want-satisfying power of a good is&#10;A)a margin.&#10;B)purchasing power.&#10;C)income.&#10;D)a util.

Accepted Answer

The answer of A representative unit that measures the want-satisfying...

Question 15

Marginal utility is&#10;A)the utility received from consuming one unit of a good.&#10;B)the change in total utility due to a one-unit change in the quantity of a good consumed.&#10;C)the total utility received from consuming a certain quantity of a good divided by the quantity.&#10;D)the utility received by the last consumer of a good.

Accepted Answer

The answer of Marginal utility is&#10;A)the utility received from consuming...

Question 16

Marginal utility is measured as&#10;A)utility per unit of production.&#10;B)extra output divided by extra utility.&#10;C)output of a good or service divided by price.&#10;D)extra utility from each additional good consumed.

Accepted Answer

The answer of Marginal utility is measured as&#10;A)utility per unit...

Question 17

The utility that people experience from the consumption of a good depends on&#10;A)their income level.&#10;B)their tastes and preferences.&#10;C)total sales of the good.&#10;D)how much shopping time they spent obtaining the good.

Accepted Answer

The answer of The utility that people experience from the...

Question 18

Economists use what term to describe the want-satisfying power of a good?&#10;A)Demand&#10;B)Utility&#10;C)Marginal propensity to consume&#10;D)Income elasticity

Accepted Answer

The answer of Economists use what term to describe the...

Question 19

The term marginal means&#10;A)total.&#10;B)cumulative.&#10;C)subjective.&#10;D)additional.

Accepted Answer

The answer of The term marginal means&#10;A)total.&#10;B)cumulative.&#10;C)subjective.&#10;D)additional....

Question 20

In economics,another term for satisfaction is&#10;A)income elasticity.&#10;B)price elasticity.&#10;C)utility.&#10;D)marginal productivity.

Accepted Answer

The answer of In economics,another term for satisfaction is&#10;A)income elasticity.&#10;B)price...

Question 21

$$\begin{array} { c c c c c } &#10;\text { Quantity } &  \text { Total Utility } \&#10;\hline \text { per Week } & \text { Michelle } & \text { Robert } & \text { David } & \text { Lauren } \&#10;\hline 0 & 0 & 0 & 0 & 0 \&#10;1 & 50 & 1000 & 60 & 60 \&#10;2 & 99 & 1900 & 120 & 130 \&#10;3 & 147 & 2700 & 180 & 220 \&#10;4 & 194 & 3400 & 240 & 310 \&#10;5 & 240 & 4000 & 300 & 425 \&#10;6 & 285 & 4500 & 360 & 575 \&#10;7 & 329 & 4900 & 420 & 900 \&#10;8 & 372 & 5200 & 480 & 1275 \&#10;9 & 414 & 5400 & 540 & 1770 \&#10;\hline&#10;\end{array}$$&#10;&#10;-According to the above table,what is Michelle's marginal utility of the 8th unit?&#10;A)372&#10;B)43&#10;C)42&#10;D)44

Accepted Answer

The answer of \[\begin{array} { c c c c c...

Question 22

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of } \&#10;\text { Movies }&#10;\end{array} & \begin{array} { c } &#10;\text { Total Utility } \&#10;\text { Mary }&#10;\end{array} & \begin{array} { c } &#10;\text { Total Utility } \&#10;\text { John }&#10;\end{array} \&#10;\hline 3 & 100 & 190 \&#10;4 & 140 & 250 \&#10;5 & 170 & 300 \&#10;6 & 190 & 340 \&#10;7 & 200 & 370 \&#10;8 & 210 & 390 \&#10;9 & 210 & 405 \&#10;10 & 200 & 415 \&#10;11 & 190 & 420 \&#10;\hline&#10;\end{array}$$&#10;&#10;-According to the above table,Mary's marginal utility from watching the 4th movie is&#10;A)140 units of utility.&#10;B)40 units of utility.&#10;C)60 units of utility.&#10;D)30 units of utility.

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 23

When the total utility from consuming one good is maximized,marginal utility is&#10;A)maximized.&#10;B)minimized.&#10;C)zero.&#10;D)positive.

Accepted Answer

The answer of When the total utility from consuming one...

Question 24

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of } \&#10;\text { Movies }&#10;\end{array} & \begin{array} { c } &#10;\text { Total Utility } \&#10;\text { Mary }&#10;\end{array} & \begin{array} { c } &#10;\text { Total Utility } \&#10;\text { John }&#10;\end{array} \&#10;\hline 3 & 100 & 190 \&#10;4 & 140 & 250 \&#10;5 & 170 & 300 \&#10;6 & 190 & 340 \&#10;7 & 200 & 370 \&#10;8 & 210 & 390 \&#10;9 & 210 & 405 \&#10;10 & 200 & 415 \&#10;11 & 190 & 420 \&#10;\hline&#10;\end{array}$$&#10;&#10;-According to the above table,John's marginal utility from watching the 9th movie is&#10;A)405 units of utility.&#10;B)0 units of utility.&#10;C)15 units of utility.&#10;D)10 units of utility.

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 25

If two units of a good provide 7 utils and the marginal utility of the third unit of the good is 2 utils,what is the total utility from consuming three units of the good?&#10;A)3 utils&#10;B)7 utils&#10;C)9 utils&#10;D)10 utils

Accepted Answer

The answer of If two units of a good provide...

Question 26

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of } \&#10;\text { Movies }&#10;\end{array} & \begin{array} { c } &#10;\text { Total Utility } \&#10;\text { Mary }&#10;\end{array} & \begin{array} { c } &#10;\text { Total Utility } \&#10;\text { John }&#10;\end{array} \&#10;\hline 3 & 100 & 190 \&#10;4 & 140 & 250 \&#10;5 & 170 & 300 \&#10;6 & 190 & 340 \&#10;7 & 200 & 370 \&#10;8 & 210 & 390 \&#10;9 & 210 & 405 \&#10;10 & 200 & 415 \&#10;11 & 190 & 420 \&#10;\hline&#10;\end{array}$$&#10;&#10;-Refer to the above table.What is the marginal utility for the 10th unit for Mary and for John?&#10;A)Mary: -10; John: 10&#10;B)Mary: 10; John 10&#10;C)Mary: 220; John 450&#10;D)Mary: 0; John: 0

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 27

Utility refers to&#10;A)the usefulness of a good or service.&#10;B)the value of a good or service.&#10;C)the want-satisfying power of a good or service.&#10;D)the degree to which a good or service is needed.

Accepted Answer

The answer of Utility refers to&#10;A)the usefulness of a good...

Question 28

$$\begin{array} { c c c c c } &#10;\text { Quantity } &  \text { Total Utility } \&#10;\hline \text { per Week } & \text { Michelle } & \text { Robert } & \text { David } & \text { Lauren } \&#10;\hline 0 & 0 & 0 & 0 & 0 \&#10;1 & 50 & 1000 & 60 & 60 \&#10;2 & 99 & 1900 & 120 & 130 \&#10;3 & 147 & 2700 & 180 & 220 \&#10;4 & 194 & 3400 & 240 & 310 \&#10;5 & 240 & 4000 & 300 & 425 \&#10;6 & 285 & 4500 & 360 & 575 \&#10;7 & 329 & 4900 & 420 & 900 \&#10;8 & 372 & 5200 & 480 & 1275 \&#10;9 & 414 & 5400 & 540 & 1770 \&#10;\hline&#10;\end{array}$$&#10;&#10;-According to the above table,what is David's marginal utility of the 7th unit?&#10;A)420&#10;B)400&#10;C)120&#10;D)60

Accepted Answer

The answer of \[\begin{array} { c c c c c...

Question 29

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of } \&#10;\text { Movies }&#10;\end{array} & \begin{array} { c } &#10;\text { Total Utility } \&#10;\text { Mary }&#10;\end{array} & \begin{array} { c } &#10;\text { Total Utility } \&#10;\text { John }&#10;\end{array} \&#10;\hline 3 & 100 & 190 \&#10;4 & 140 & 250 \&#10;5 & 170 & 300 \&#10;6 & 190 & 340 \&#10;7 & 200 & 370 \&#10;8 & 210 & 390 \&#10;9 & 210 & 405 \&#10;10 & 200 & 415 \&#10;11 & 190 & 420 \&#10;\hline&#10;\end{array}$$&#10;&#10;-According to the above table,Mary's marginal utility from watching the 6th movie is&#10;A)190 units of utility.&#10;B)40 units of utility.&#10;C)10 units of utility.&#10;D)20 units of utility.

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 30

Marginal utility is defined as&#10;A)the increase in utility divided by the total number of units consumed.&#10;B)the total utility divided by the total number of units consumed.&#10;C)the change in total utility divided by the change in number of units consumed.&#10;D)the number of units consumed divided by the total utility.

Accepted Answer

The answer of Marginal utility is defined as&#10;A)the increase in...

Question 31

$$\begin{array} { c c c c c } &#10;\text { Quantity } &  \text { Total Utility } \&#10;\hline \text { per Week } & \text { Michelle } & \text { Robert } & \text { David } & \text { Lauren } \&#10;\hline 0 & 0 & 0 & 0 & 0 \&#10;1 & 50 & 1000 & 60 & 60 \&#10;2 & 99 & 1900 & 120 & 130 \&#10;3 & 147 & 2700 & 180 & 220 \&#10;4 & 194 & 3400 & 240 & 310 \&#10;5 & 240 & 4000 & 300 & 425 \&#10;6 & 285 & 4500 & 360 & 575 \&#10;7 & 329 & 4900 & 420 & 900 \&#10;8 & 372 & 5200 & 480 & 1275 \&#10;9 & 414 & 5400 & 540 & 1770 \&#10;\hline&#10;\end{array}$$&#10;&#10;-According to the above table,what is Robert's marginal utility of the 5th unit?&#10;A)60&#10;B)4500&#10;C)600&#10;D)500

Accepted Answer

The answer of \[\begin{array} { c c c c c...

Question 32

$$\begin{array} { c c c c c } &#10;\text { Quantity } &  \text { Total Utility } \&#10;\hline \text { per Week } & \text { Michelle } & \text { Robert } & \text { David } & \text { Lauren } \&#10;\hline 0 & 0 & 0 & 0 & 0 \&#10;1 & 50 & 1000 & 60 & 60 \&#10;2 & 99 & 1900 & 120 & 130 \&#10;3 & 147 & 2700 & 180 & 220 \&#10;4 & 194 & 3400 & 240 & 310 \&#10;5 & 240 & 4000 & 300 & 425 \&#10;6 & 285 & 4500 & 360 & 575 \&#10;7 & 329 & 4900 & 420 & 900 \&#10;8 & 372 & 5200 & 480 & 1275 \&#10;9 & 414 & 5400 & 540 & 1770 \&#10;\hline&#10;\end{array}$$&#10;&#10;-According to the above table,what is Lauren's marginal utility of the 4th unit?&#10;A)90&#10;B)220&#10;C)310&#10;D)115

Accepted Answer

The answer of \[\begin{array} { c c c c c...

Question 33

Utility analysis is the analysis of&#10;A)how consumers decide how to spend their money.&#10;B)the formation of tastes and preferences.&#10;C)the psychology of decision making.&#10;D)consumer decision making based on utility maximization.

Accepted Answer

The answer of Utility analysis is the analysis of&#10;A)how consumers...

Question 34

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of } \&#10;\text { Movies }&#10;\end{array} & \begin{array} { c } &#10;\text { Total Utility } \&#10;\text { Mary }&#10;\end{array} & \begin{array} { c } &#10;\text { Total Utility } \&#10;\text { John }&#10;\end{array} \&#10;\hline 3 & 100 & 190 \&#10;4 & 140 & 250 \&#10;5 & 170 & 300 \&#10;6 & 190 & 340 \&#10;7 & 200 & 370 \&#10;8 & 210 & 390 \&#10;9 & 210 & 405 \&#10;10 & 200 & 415 \&#10;11 & 190 & 420 \&#10;\hline&#10;\end{array}$$&#10;&#10;-The total utility from consuming 8 units of a good is 155.The marginal utility of the 8th unit is 7 and the marginal utility of the 7th unit is 11.The total utility from consuming 6 units of the good is&#10;A)173.&#10;B)144.&#10;C)137.&#10;D)130.

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 35

The want-satisfying power of a good or service is known as&#10;A)purchasing power.&#10;B)utility.&#10;C)consumer optimum.&#10;D)principle of substitution.

Accepted Answer

The answer of The want-satisfying power of a good or...

Question 36

Consumers are most satisfied when&#10;A)all of their income has been saved.&#10;B)the total level of utility is as high as possible.&#10;C)goods are bought &#34;on sale.&#34;&#10;D)they save more than they spend.

Accepted Answer

The answer of Consumers are most satisfied when&#10;A)all of their...

Question 37

A good synonym for &#34;utility&#34; is&#10;A)marginal.&#10;B)need.&#10;C)practical.&#10;D)satisfaction.

Accepted Answer

The answer of A good synonym for &#34;utility&#34; is&#10;A)marginal.&#10;B)need.&#10;C)practical.&#10;D)satisfaction....

Question 38

If total utility is unchanged,then marginal utility is&#10;A)negative.&#10;B)positive.&#10;C)zero.&#10;D)increasing.

Accepted Answer

The answer of If total utility is unchanged,then marginal utility...

Question 39

Economists infer that a consumer receives more utility from one good than another by&#10;A)giving consumers surveys about the utility they receive from the goods.&#10;B)observing the consumer's behavior.&#10;C)the logic of the models used.&#10;D)means of introspection and speculation.

Accepted Answer

The answer of Economists infer that a consumer receives more...

Question 40

The concept of utility is&#10;A)subjective so that there can be no true measurement of someone's utility.&#10;B)subjective so measurement of someone's utility must be done scientifically.&#10;C)objective so that devices can be developed that would measure a person's utility.&#10;D)objective so that psychologists can measure utility and compare one person's utility with that of another person.

Accepted Answer

The answer of The concept of utility is&#10;A)subjective so that...

Question 41

The analysis of consumer decision making based on utility maximization is known as&#10;A)specialization analysis.&#10;B)consumption analysis.&#10;C)utility analysis.&#10;D)market analysis.

Accepted Answer

The answer of The analysis of consumer decision making based...

Question 42

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of Movies } \&#10;\text { Watched per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Michelle's Total } \&#10;\text { Utility per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Robert's Total } \&#10;\text { Utility per Week }&#10;\end{array} \&#10;\hline 0 & 0 & 0 \&#10;1 & 100 & 100 \&#10;2 & 195 & 190 \&#10;3 & 270 & 270 \&#10;4 & 340 & 340 \&#10;5 & 390 & 400 \&#10;6 & 420 & 350 \&#10;7 & 435 & 390 \&#10;8 & 445 & 420 \&#10;9 & 450 & 440 \&#10;10 & 440 & 450 \&#10;\hline&#10;\end{array}$$&#10;&#10;-Refer to the above table.The marginal utility of the 6th movie for Michelle is&#10;A)25 units of utility.&#10;B)30 units of utility.&#10;C)35 units of utility.&#10;D)40 units of utility.

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 43

A representative unit by which utility is measured is&#10;A)a util.&#10;B)utility.&#10;C)marginal utility.&#10;D)ordinal utility.

Accepted Answer

The answer of A representative unit by which utility is...

Question 44

The rate of change in total utility equals&#10;A)marginal utility.&#10;B)the change in marginal utility associated with eating all the quantities a person can handle.&#10;C)the change in marginal utility divided by the change in quantity.&#10;D)the rate of change in marginal utility divided by the price.

Accepted Answer

The answer of The rate of change in total utility...

Question 45

In cardinal utility analysis&#10;A)numbers can be assigned to utility.&#10;B)it is recognized that numbers can not be assigned to utility.&#10;C)the concept of marginal utility exists while in ordinal utility analysis marginal utility does not exist.&#10;D)marginal utility always increases as more of a good is consumed.

Accepted Answer

The answer of In cardinal utility analysis&#10;A)numbers can be assigned...

Question 46

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of Movies } \&#10;\text { Watched per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Michelle's Total } \&#10;\text { Utility per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Robert's Total } \&#10;\text { Utility per Week }&#10;\end{array} \&#10;\hline 0 & 0 & 0 \&#10;1 & 100 & 100 \&#10;2 & 195 & 190 \&#10;3 & 270 & 270 \&#10;4 & 340 & 340 \&#10;5 & 390 & 400 \&#10;6 & 420 & 350 \&#10;7 & 435 & 390 \&#10;8 & 445 & 420 \&#10;9 & 450 & 440 \&#10;10 & 440 & 450 \&#10;\hline&#10;\end{array}$$&#10;&#10;-Refer to the above table.The marginal utility of the 5th movie for Michelle is&#10;A)40 units of utility.&#10;B)50 units of utility.&#10;C)60 units of utility.&#10;D)390 units of utility.

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 47

Karen has decided that she would enjoy eating another cookie.Which of the following statements is consistent with Karen's decision?&#10;A)Karen's marginal utility has decreased with a corresponding decrease in total utility.&#10;B)Karen's marginal and total utility remain unchanged.&#10;C)Karen's marginal utility has decreased but it is unclear what has happened to total utility.&#10;D)Karen's total utility has increased but it is unclear what has happened to her marginal utility.

Accepted Answer

The answer of Karen has decided that she would enjoy...

Question 48

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of Movies } \&#10;\text { Watched per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Michelle's Total } \&#10;\text { Utility per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Robert's Total } \&#10;\text { Utility per Week }&#10;\end{array} \&#10;\hline 0 & 0 & 0 \&#10;1 & 100 & 100 \&#10;2 & 195 & 190 \&#10;3 & 270 & 270 \&#10;4 & 340 & 340 \&#10;5 & 390 & 400 \&#10;6 & 420 & 350 \&#10;7 & 435 & 390 \&#10;8 & 445 & 420 \&#10;9 & 450 & 440 \&#10;10 & 440 & 450 \&#10;\hline&#10;\end{array}$$&#10;&#10;-Refer to the above table.The marginal utility of the 2nd movie for Robert is&#10;A)95 units of utility.&#10;B)90 units of utility.&#10;C)80 units of utility.&#10;D)190 units of utility.

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 49

John has just eaten another potato chip and his total utility decreased.This means that John's marginal utility for this additional potato chip is&#10;A)positive.&#10;B)negative.&#10;C)zero.&#10;D)not determinable without more information.

Accepted Answer

The answer of John has just eaten another potato chip...

Question 50

A well-known athlete loves cupcakes.He receives 200 utils for the first cupcake,an additional 160 for the second,an additional 120 for the third,another 80 for the fourth,and another 40 for the fifth.The marginal utility of the fourth cupcake is ________ and the total utility of consuming four cupcakes is ________.&#10;A)40; 80&#10;B)80; 600&#10;C)80; 560&#10;D)40; 40

Accepted Answer

The answer of A well-known athlete loves cupcakes.He receives 200...

Question 51

The change in the total utility as a result of increasing consumption by one unit is known as&#10;A)marginal utility.&#10;B)average utility.&#10;C)proportional utility.&#10;D)utils.

Accepted Answer

The answer of The change in the total utility as...

Question 52

John has just eaten another potato chip and his total utility increased.This means that John's marginal utility for this additional potato chip is&#10;A)positive.&#10;B)negative.&#10;C)zero.&#10;D)not determinable without more information.

Accepted Answer

The answer of John has just eaten another potato chip...

Question 53

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of Movies } \&#10;\text { Watched per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Michelle's Total } \&#10;\text { Utility per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Robert's Total } \&#10;\text { Utility per Week }&#10;\end{array} \&#10;\hline 0 & 0 & 0 \&#10;1 & 100 & 100 \&#10;2 & 195 & 190 \&#10;3 & 270 & 270 \&#10;4 & 340 & 340 \&#10;5 & 390 & 400 \&#10;6 & 420 & 350 \&#10;7 & 435 & 390 \&#10;8 & 445 & 420 \&#10;9 & 450 & 440 \&#10;10 & 440 & 450 \&#10;\hline&#10;\end{array}$$&#10;&#10;-Refer to the above table.What is the marginal utility for the 10th unit for Michelle and for Robert?&#10;A)Michelle: 50; Robert: 50&#10;B)Michelle: 15; Robert: 20&#10;C)Michelle: 10; Robert: 10&#10;D)Michelle: -10; Robert: 10

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 54

At a ball game we can observe people eating hot dogs,chips,and burgers.If all are priced the same and we observe Michelle eating a hot dog and David eating a hamburger,we can conclude that&#10;A)Robert will be eating chips.&#10;B)Michelle likes hot dogs better than David does and David likes hamburgers better than Michelle does.&#10;C)Michelle derives the same amount of utility from eating a hot dog as David derives from eating a hamburger.&#10;D)at this time Michelle derives more utility from eating a hot dog than from eating either a hamburger or chips,while David derives more utility from eating a hamburger than from eating either a hot dog or chips.

Accepted Answer

The answer of At a ball game we can observe...

Question 55

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of Movies } \&#10;\text { Watched per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Michelle's Total } \&#10;\text { Utility per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Robert's Total } \&#10;\text { Utility per Week }&#10;\end{array} \&#10;\hline 0 & 0 & 0 \&#10;1 & 100 & 100 \&#10;2 & 195 & 190 \&#10;3 & 270 & 270 \&#10;4 & 340 & 340 \&#10;5 & 390 & 400 \&#10;6 & 420 & 350 \&#10;7 & 435 & 390 \&#10;8 & 445 & 420 \&#10;9 & 450 & 440 \&#10;10 & 440 & 450 \&#10;\hline&#10;\end{array}$$&#10;&#10;-Refer to the above table.The marginal utility of the 8th movie for Robert is&#10;A)30 units of utility.&#10;B)20 units of utility.&#10;C)420 units of utility.&#10;D)5 units of utility.

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 56

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of Movies } \&#10;\text { Watched per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Michelle's Total } \&#10;\text { Utility per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Robert's Total } \&#10;\text { Utility per Week }&#10;\end{array} \&#10;\hline 0 & 0 & 0 \&#10;1 & 100 & 100 \&#10;2 & 195 & 190 \&#10;3 & 270 & 270 \&#10;4 & 340 & 340 \&#10;5 & 390 & 400 \&#10;6 & 420 & 350 \&#10;7 & 435 & 390 \&#10;8 & 445 & 420 \&#10;9 & 450 & 440 \&#10;10 & 440 & 450 \&#10;\hline&#10;\end{array}$$&#10;&#10;-Refer to the above table.The marginal utility of the 7th movie for Michelle is&#10;A)15 units of utility.&#10;B)20 units of utility.&#10;C)35 units of utility.&#10;D)435 units of utility.

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 57

$$\begin{array} { c c c } &#10;\begin{array} { c } &#10;\text { Quantity of Movies } \&#10;\text { Watched per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Michelle's Total } \&#10;\text { Utility per Week }&#10;\end{array} & \begin{array} { c } &#10;\text { Robert's Total } \&#10;\text { Utility per Week }&#10;\end{array} \&#10;\hline 0 & 0 & 0 \&#10;1 & 100 & 100 \&#10;2 & 195 & 190 \&#10;3 & 270 & 270 \&#10;4 & 340 & 340 \&#10;5 & 390 & 400 \&#10;6 & 420 & 350 \&#10;7 & 435 & 390 \&#10;8 & 445 & 420 \&#10;9 & 450 & 440 \&#10;10 & 440 & 450 \&#10;\hline&#10;\end{array}$$&#10;&#10;-Refer to the above table.The marginal utility of the 5th movie for Robert is&#10;A)400 units of utility.&#10;B)50 units of utility.&#10;C)60 units of utility.&#10;D)70 units of utility.

Accepted Answer

The answer of \[\begin{array} { c c c } &#10;\begin{array}...

Question 58

Marginal utility is&#10;A)the utility received by the last consumer of a good.&#10;B)the total utility received from consuming a given quantity of a good divided by the number of units consumed.&#10;C)the change in total utility from consuming an additional unit of a good.&#10;D)the utility received from consuming the first unit of a good.

Accepted Answer

The answer of Marginal utility is&#10;A)the utility received by the...

Question 59

Sam loves cookies.She receives 200 utils for one cookie,360 for two cookies,480 for the third,560 for four cookies,and 600 for five cookies.The marginal utility of the third cookie is&#10;A)120&#10;B)480&#10;C)80&#10;D)unable to determine

Accepted Answer

The answer of Sam loves cookies.She receives 200 utils for...

Question 60

Juan and Sophia have decided to stop studying economics and get a bite to eat.Juan wants to go for a pizza and Sophia wants a hamburger.They decide to go for pizza.What can we conclude from this?&#10;A)Juan always gets more utility from pizza than Sophia does.&#10;B)Sophia gets less utility from pizza than she could from a hamburger.&#10;C)Sophia will get negative utility from the pizza.&#10;D)Utility analysis does not work here since Sophia did not eat a hamburger.

Accepted Answer

The answer of Juan and Sophia have decided to stop...

Question 61

The additional utility or satisfaction that one derives from consuming one more unit of any good or service is referred to as&#10;A)total utility.&#10;B)substantive utility.&#10;C)average utility.&#10;D)marginal utility.

Accepted Answer

The answer of The additional utility or satisfaction that one...

Question 62

Marginal utility&#10;A)at first rises and then declines as a person consumes more of a good or service.&#10;B)can be thought of as being the equivalent to total utility.&#10;C)equals the total satisfaction from consumption of goods and services.&#10;D)is stable,but then as a person consumes more of a good or service,has a propensity to increase.

Accepted Answer

The answer of Marginal utility&#10;A)at first rises and then declines...

Question 63

When marginal utility is negative,total utility is&#10;A)increasing at a decreasing rate.&#10;B)zero.&#10;C)at its maximum.&#10;D)decreasing.

Accepted Answer

The answer of When marginal utility is negative,total utility is&#10;A)increasing...

Question 64

At the point at which total utility is at a maximum,&#10;A)marginal utility is at a minimum.&#10;B)marginal utility is negative.&#10;C)marginal utility is zero.&#10;D)marginal utility is equal to total utility.

Accepted Answer

The answer of At the point at which total utility...

Deck 7: Consumer Choice