Question 1

Freddy has eaten three corn dogs at the county fair,and if he eats another,he will get sick on the roller coaster.Knowing this,and ignoring any impact that price might have on his decision,we can say that,for the fourth corn dog,the:
A)total utility is less than zero.
B)marginal utility is less than zero.
C)total utility curve is still increasing.
D)marginal utility curve is still increasing.

Accepted Answer

According to the law of diminishing marginal utility, as a person consumes more of a good, the marginal utility (additional satisfaction from consuming each additional unit) will eventually decrease. In this case, Freddy has already consumed three corn dogs and if he eats a fourth, he will get sick. Therefore, the marginal utility of the fourth corn dog is likely to be negative, meaning it will provide less satisfaction than the previous corn dogs. Thus, choice B is the best answer.

Question 2

If total utility is at a maximum,marginal utility is:
A)rising.
B)at its average value.
C)at a maximum.
D)zero.

Accepted Answer

When total utility is at a maximum, marginal utility is zero. This is because marginal utility measures the additional satisfaction gained from consuming one more unit of a good, and when total utility is at its highest point, consuming additional units will not provide any additional satisfaction (thus, marginal utility becomes zero).

Question 3

Use the following to answer question: 
-(Table: Exercise and Total Utility)Use Table: Exercise and Total Utility.The principle of diminishing marginal utility is seen:
A)nowhere,as marginal utility is always increasing.
B)immediately,from the first hour and beyond.
C)between the third and fourth hours.
D)after the second hour of exercise.

Accepted Answer

The answer of Use the following to answer question: 
-(Table:...

Question 4

The principle of diminishing marginal utility:
A)refers to the tendency of total utility to increase until an individual's budget is no longer constrained.
B)refers to the tendency of marginal utility to decline as the amount of consumption of a good or service increases.
C)indicates that,if a good is inferior,less of it will be purchased when income falls.
D)assumes all goods are normal.

Accepted Answer

Diminishing marginal utility refers to the tendency of the additional satisfaction or utility obtained from a good or service to decline as more is consumed. In other words, as an individual consumes more of a good or service, the additional utility gained from consuming each additional unit decreases. This is due to the fact that the individual's needs and wants are progressively satisfied with each additional unit, leading to a decrease in the rate at which utility is obtained.

Question 5

Use the following to answer question: 
-(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.The marginal utility she derives from the sixth serving she eats is _____ units.
A)-25
B)0
C)25
D)-15

Accepted Answer

The marginal utility is negative, indicating that the sixth serving decreases Carmen's overall satisfaction by 25 units.

Question 6

If total utility is rising as more salsa is consumed,we can definitely say that marginal utility is:
A)falling.
B)constant.
C)rising.
D)greater than zero.

Accepted Answer

When total utility is rising, it means that each additional unit of salsa consumed is adding to the overall satisfaction, indicating that marginal utility is greater than zero.

Question 7

Use the following to answer question: 
-(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's marginal utility from eating macaroni becomes negative at the _____ serving.
A)first
B)second
C)fifth
D)sixth

Accepted Answer

According to the table, Carmen's marginal utility from eating macaroni and cheese starts decreasing at the fifth serving and becomes negative at the sixth serving. Therefore, D (sixth) is the correct answer.

Question 8

Which statement is TRUE if the principle of diminishing marginal utility applies?
A)When a customer at the Pie Palace continues to eat more pie,each additional piece of pie gives the same marginal utility.
B)When a customer at the Pie Palace continues to eat more pie,each additional piece of pie gives less marginal utility.
C)When a customer at the Pie Palace continues to eat more pie,each additional piece of pie lowers total utility.
D)The total utility of pie is at a maximum,while the marginal utility of pie is still increasing.

Accepted Answer

The principle of diminishing marginal utility states that as consumption of a good or service increases, the additional satisfaction gained from each additional unit of the good or service decreases. Therefore, option B is true as each additional piece of pie gives less marginal utility. Option A, C and D are incorrect based on the principle of diminishing marginal utility.

Question 9

Use the following to answer question: 
-(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's total utility is maximized after she eats the _____ serving.
A)first
B)second
C)forth
D)sixth

Accepted Answer

The answer of Use the following to answer question: 
-(Table:...

Question 10

The amount by which total utility rises when an additional slice of pie is consumed is called:
A)average utility.
B)the law of diminishing returns.
C)incremental utility.
D)marginal utility.

Accepted Answer

The term used to describe the amount by which total utility rises when an additional unit is consumed is marginal utility. Choice A, average utility, is the total utility divided by the quantity consumed, and represents the average amount of satisfaction derived from each unit. The law of diminishing returns, choice B, states that as more and more units of a variable input (such as labor) are added to a fixed input (such as machinery), the marginal product of the variable input will eventually decrease. Choice C, incremental utility, is not a commonly used term in economics.

Question 11

Use the following to answer question: 
-(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's marginal utility from eating macaroni and cheese is 0 for the _____ serving.
A)first
B)second
C)third
D)fifth

Accepted Answer

Marginal utility refers to the additional satisfaction or utility that a person receives from consuming an additional unit of a good or service. If Carmen's marginal utility from eating macaroni and cheese is 0 for a serving, it means she no longer derives any additional satisfaction from consuming more of it. Without the specific utility values provided in the table, the correct answer cannot be determined from the information given. However, typically, as one consumes more of a good, the marginal utility decreases and eventually can become zero, indicating satiation. The question seems to imply a scenario or a table that we cannot see, but based on common understanding of marginal utility, it decreases with each additional unit consumed until it reaches zero, which often happens after several servings have been consumed, making D a plausible choice if we assume the marginal utility decreases over consecutive servings.

Question 12

Use the following to answer question: 
-(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.The marginal utility she derives from the second serving she eats is _____ units.
A)35
B)15
C)10
D)5

Accepted Answer

According to the table, the marginal utility from the second serving of macaroni and cheese is 15 units. Therefore, option B is the correct answer.

Question 13

Use the following to answer question: 
-(Table: The Utility of Macaroni and Cheese)Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.The marginal utility she derives from the fifth serving she eats is _____ units.
A)15
B)10
C)5
D)0

Accepted Answer

The answer of Use the following to answer question: 
-(Table:...

Question 14

Assuming that diminishing marginal utility applies to both pomegranates and bananas,if Vanessa buys more pomegranates and fewer bananas,the _____ utility of pomegranates will _____,and the _____ utility of bananas will _____.
A)marginal;fall;marginal;rise
B)marginal;rise;marginal;fall
C)total;fall;marginal;rise
D)marginal;rise;total;rise

Accepted Answer

According to the principle of diminishing marginal utility, as Vanessa buys more pomegranates, the additional satisfaction (marginal utility) she gets from consuming each additional pomegranate will decrease. Conversely, as she buys fewer bananas, the marginal utility of bananas will increase because she is consuming them less frequently, making each banana more valuable in terms of the satisfaction it provides.

Question 15

When an individual continues to eat more turkey,if the principle of diminishing marginal utility applies,each additional serving yields:
A)more marginal utility.
B)less marginal utility.
C)the same amount of marginal utility.
D)less total utility.

Accepted Answer

According to the principle of diminishing marginal utility, as an individual continues to consume more units of a good, the additional marginal utility derived from each unit consumed eventually starts to decrease. Therefore, as the individual continues to eat more turkey, each additional serving will yield less marginal utility.

Question 16

The marginal utility of eating sweet potatoes is the:
A)change in total utility from consuming an additional serving.
B)total utility divided by the number of servings consumed.
C)change in total utility divided by the number of servings consumed.
D)total utility divided by the change in the number of servings consumed.

Accepted Answer

Marginal utility refers to the additional satisfaction or benefit that a consumer receives from consuming one more unit of a good or service. Therefore, the marginal utility of eating sweet potatoes would be the change in total utility (satisfaction) from consuming an additional serving. Option A correctly states this definition. Option B is incorrect as it refers to average utility. Option C is incorrect as it divides the change in total utility by the number of servings consumed, which is not the definition of marginal utility. Option D is incorrect as it divides total utility by the change in the number of servings consumed, which again does not reflect the definition of marginal utility.

Question 17

The amount by which total utility _____ when an additional unit of a good is consumed is _____.
A)changes;average utility
B)increases;the income effect
C)decreases;maximum utility
D)changes;marginal utility

Accepted Answer

The amount by which total utility changes when an additional unit of a good is consumed is referred to as the marginal utility. Therefore, the best choice is D - changes; marginal utility.

Question 18

Assuming that diminishing marginal utility applies to both goods,if a consumer buys more plastic bins and fewer door hooks,the _____ utility of plastic bins will _____,and the _____ utility of door hooks will _____.
A)marginal;fall;marginal;rise
B)marginal;fall;marginal;fall
C)total;fall;marginal;rise
D)marginal;rise;total;rise

Accepted Answer

According to the principle of diminishing marginal utility, as a consumer buys more of a good (in this case, plastic bins), the additional satisfaction (marginal utility) from each additional unit decreases. Conversely, buying fewer of another good (door hooks) means the marginal utility of the next unit of that good would increase if the consumer were to purchase more, because they are consuming less of it currently.

Question 19

As you consume more turkey relative to mashed potatoes,the _____ of turkey eventually decreases.
A)price
B)usefulness
C)marginal utility
D)demand

Accepted Answer

Marginal utility refers to the additional satisfaction or benefit a consumer receives from consuming one more unit of a good or service. As the consumer consumes more turkey relative to mashed potatoes, the marginal utility of turkey decreases because the satisfaction or benefit obtained from consuming an additional unit of turkey decreases.

Question 20

Use the following to answer question: 
-(Table: Exercise and Total Utility)Use Table: Exercise and Total Utility.Marginal utility:
A)initially decreases but eventually increases as more exercise is consumed.
B)always decreases as more exercise is consumed.
C)initially increases but eventually decreases as more exercise is consumed.
D)initially increases but eventually stays constant as more exercise is consumed.

Accepted Answer

The marginal utility initially increases (10 to 15) but eventually decreases (15 to 12) as more exercise is consumed.

Quiz 10: The Rational Consumer

Freddy has eaten three corn dogs at the county fair,and if he eats another,he will get sick on the roller coaster.Knowing this,and ignoring any impact that price might have on his decision,we can say that,for the fourth corn dog,the:

If total utility is at a maximum,marginal utility is:

Use the following to answer question: -(Table: Exercise and Total Utility) Use Table: Exercise and Total Utility.The principle of diminishing marginal utility is seen:

The principle of diminishing marginal utility:

Use the following to answer question: -(Table: The Utility of Macaroni and Cheese) Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.The marginal utility she derives from the sixth serving she eats is _____ units.

If total utility is rising as more salsa is consumed,we can definitely say that marginal utility is:

Use the following to answer question: -(Table: The Utility of Macaroni and Cheese) Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's marginal utility from eating macaroni becomes negative at the _____ serving.

Which statement is TRUE if the principle of diminishing marginal utility applies?

Use the following to answer question: -(Table: The Utility of Macaroni and Cheese) Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's total utility is maximized after she eats the _____ serving.

The amount by which total utility rises when an additional slice of pie is consumed is called:

Use the following to answer question: -(Table: The Utility of Macaroni and Cheese) Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.Carmen's marginal utility from eating macaroni and cheese is 0 for the _____ serving.

Use the following to answer question: -(Table: The Utility of Macaroni and Cheese) Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.The marginal utility she derives from the second serving she eats is _____ units.

Use the following to answer question: -(Table: The Utility of Macaroni and Cheese) Use Table: The Utility of Macaroni and Cheese.Carmen loves eating macaroni and cheese on Thanksgiving.The marginal utility she derives from the fifth serving she eats is _____ units.

Assuming that diminishing marginal utility applies to both pomegranates and bananas,if Vanessa buys more pomegranates and fewer bananas,the ___ utility of pomegranates will _,and the _ utility of bananas will ___.

When an individual continues to eat more turkey,if the principle of diminishing marginal utility applies,each additional serving yields:

The marginal utility of eating sweet potatoes is the:

The amount by which total utility _ when an additional unit of a good is consumed is _.

Assuming that diminishing marginal utility applies to both goods,if a consumer buys more plastic bins and fewer door hooks,the ___ utility of plastic bins will _,and the _ utility of door hooks will ___.

As you consume more turkey relative to mashed potatoes,the _____ of turkey eventually decreases.

Use the following to answer question: -(Table: Exercise and Total Utility) Use Table: Exercise and Total Utility.Marginal utility: