Question 1

Goods that bring you utility are goods that

Accepted Answer

Utility refers to the satisfaction or benefit derived from consuming a product, so goods that enhance your well-being provide utility.

Question 2

Total utility derived from consuming one good declines when

Accepted Answer

Total utility declines when marginal utility is negative because each additional unit consumed decreases overall satisfaction.

Question 3

Marginal utility is the

Accepted Answer

Marginal utility is the additional satisfaction from consuming one more unit of a good or service.

Question 4

When marginal utility is zero,

Accepted Answer

When marginal utility is zero, it means that consuming an additional unit of a good does not increase total utility, indicating that total utility has reached its maximum point.

Question 5

Marginal means

Accepted Answer

Marginal means refer to the incremental change or additional effect of one more unit of something, often used in economics and statistics to describe the effect of a small change in a variable.

Question 6

A rational consumer will never purchase a product when its

Accepted Answer

A rational consumer will never purchase a product when its marginal utility is negative, because it means that the consumer would be better off without the product.

Question 7

Table 4.3
 
-After consuming what quantity of pizza does the consumer in Table 4.3 experience diminishing marginal utility?

Accepted Answer

The answer of Table 4.3
 
-After consuming what quantity of...

Question 8

Table 4.3
 
-After consuming what quantity of soda does the consumer in Table 4.3 experience diminishing marginal utility?

Accepted Answer

The answer of Table 4.3
 
-After consuming what quantity of...

Question 9

Table 4.3
 
-In Table 4.3, at how many sodas is the total utility from sodas maximized?

Accepted Answer

At 3 sodas, the total utility from sodas is maximized because the marginal utility of the third soda is 10, which is greater than the marginal utility of the fourth soda, which is 5.

Question 10

Table 4.4
 
-According to Table 4.4, what is the marginal utility of the second CD purchased?

Accepted Answer

The answer of Table 4.4
 
-According to Table 4.4, what...

Question 11

Table 4.4
 
-According to Table 4.4, what is the marginal utility of the third CD purchased?

Accepted Answer

The marginal utility of the third CD is the additional utility gained from purchasing the third CD, which is given as 50 in the options.

Question 12

Table 4.4
 
-According to Table 4.4, what is the total utility when four CDs are purchased?

Accepted Answer

Total utility when four CDs are purchased is 220 utils.

Question 13

Table 4.4
 
-According to Table 4.4, what is the total utility when five CDs are purchased?

Accepted Answer

The total utility when five CDs are purchased is 245, as indicated in Table 4.4.

Question 14

Table 4.4
 
-According to Table 4.4, what is the total utility when six CDs are purchased?

Accepted Answer

The total utility when six CDs are purchased is 260, as indicated in Table 4.4.

Question 15

Table 4.4
 
-What is true of the consumer whose utility values are given in Table 4.4?

Accepted Answer

The concept of diminishing marginal utility suggests that as a consumer consumes more units of a good, the additional satisfaction (marginal utility) gained from consuming each additional unit decreases.

Question 16

Marginal utility

Accepted Answer

Marginal utility is defined as the change in total utility that results from consuming an additional unit of a good or service.

Question 17

Which of the following statements is TRUE?

Accepted Answer

The marginal utility you expect to derive from a good influences your willingness to purchase it at a given price, as it reflects the additional satisfaction or benefit you anticipate from consuming one more unit of the good.

Question 18

Table 4.5
 
-Using Table 4.5, diminishing marginal utility begins after the _____________ glass of water is consumed.

Accepted Answer

The answer of Table 4.5
 
-Using Table 4.5, diminishing marginal...

Question 19

Table 4.5
 
-Using Table 4.5, what is the marginal utility of the fourth glass of water?

Accepted Answer

The marginal utility is the additional utility gained from consuming one more unit of a good. If the utility of the third glass is 75 and the utility of the fourth glass is 100, the marginal utility of the fourth glass is 100 - 75 = 25.

Question 20

Table 4.5
 
-Using Table 4.5, when does marginal utility become negative?

Accepted Answer

Marginal utility becomes negative when the consumption of an additional unit decreases overall satisfaction. This typically occurs after a certain point of consumption, which in this case is with the sixth glass of water.

Quiz 4: Consumer Decision Making and Consumer Reaction to Price Changes

Goods that bring you utility are goods that

Total utility derived from consuming one good declines when

Marginal utility is the

When marginal utility is zero,

Marginal means

A rational consumer will never purchase a product when its

Table 4.3 -After consuming what quantity of pizza does the consumer in Table 4.3 experience diminishing marginal utility?

Table 4.3 -After consuming what quantity of soda does the consumer in Table 4.3 experience diminishing marginal utility?

Table 4.3 -In Table 4.3, at how many sodas is the total utility from sodas maximized?

Table 4.4 -According to Table 4.4, what is the marginal utility of the second CD purchased?

Table 4.4 -According to Table 4.4, what is the marginal utility of the third CD purchased?

Table 4.4 -According to Table 4.4, what is the total utility when four CDs are purchased?

Table 4.4 -According to Table 4.4, what is the total utility when five CDs are purchased?

Table 4.4 -According to Table 4.4, what is the total utility when six CDs are purchased?

Table 4.4 -What is true of the consumer whose utility values are given in Table 4.4?

Marginal utility

Which of the following statements is TRUE?

Table 4.5 -Using Table 4.5, diminishing marginal utility begins after the _____________ glass of water is consumed.

Table 4.5 -Using Table 4.5, what is the marginal utility of the fourth glass of water?

Table 4.5 -Using Table 4.5, when does marginal utility become negative?