Question 1

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 2

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 called marginal utility. It measures the additional satisfaction or utility gained from consuming an extra unit of a good. Therefore, the correct option is D.

Question 3

Use the following to answer questions : $$\begin{array}{l}
\hline \text { Table: The Utility of Macaroni and Cheese }\
\begin{array} { l r r r r r r r r } 
\hline \text { Number of servings } & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 \
\text { Total utility } & 0 & 10 & 25 & 35 & 60 & 60 & 35 & 25 \
\hline
\end{array}
\end{array}$$
-(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 questions :...

Question 4

Use the following to answer questions : $$\begin{array}{l}
\hline \text { Table: The Utility of Macaroni and Cheese }\
\begin{array} { l r r r r r r r r } 
\hline \text { Number of servings } & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 \
\text { Total utility } & 0 & 10 & 25 & 35 & 60 & 60 & 35 & 25 \
\hline
\end{array}
\end{array}$$
-(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) fourth
D) sixth

Accepted Answer

Carmen's total utility is maximized at the fourth serving, where the total utility reaches 60, and does not increase with additional servings.

Question 5

Freddy has eaten three pogos while visiting Canada's Wonderland,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 pogo,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

Marginal utility is the additional utility gained from consuming one more unit of a good. In this case, if Freddy eats another pogo, he will feel sick on the roller coaster, which will decrease his overall utility. Therefore, the marginal utility of the fourth pogo is negative.

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

The answer of If total utility is rising as more...

Question 7

Use the following to answer questions : $$\begin{array}{l}
\hline \text { Table: The Utility of Macaroni and Cheese }\
\begin{array} { l r r r r r r r r } 
\hline \text { Number of servings } & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 \
\text { Total utility } & 0 & 10 & 25 & 35 & 60 & 60 & 35 & 25 \
\hline
\end{array}
\end{array}$$
-(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 8

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Exercise and Total Utility }\
\begin{array} { l c } 
\hline \begin{array} { l } 
\text { Hours of } \
\text { Exercise }
\end{array} & \text { Total Utility } \
\hline 0 & 0 \
1 & 5 \
2 & 15 \
3 & 23 \
4 & 29 \
5 & 33 \
\hline
\end{array}
\end{array}$$
-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 9

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Exercise and Total Utility }\
\begin{array} { l c } 
\hline \begin{array} { l } 
\text { Hours of } \
\text { Exercise }
\end{array} & \text { Total Utility } \
\hline 0 & 0 \
1 & 5 \
2 & 15 \
3 & 23 \
4 & 29 \
5 & 33 \
\hline
\end{array}
\end{array}$$
-(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 questions :...

Question 10

Use the following to answer questions : $$\begin{array}{l}
\hline \text { Table: The Utility of Macaroni and Cheese }\
\begin{array} { l r r r r r r r r } 
\hline \text { Number of servings } & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 \
\text { Total utility } & 0 & 10 & 25 & 35 & 60 & 60 & 35 & 25 \
\hline
\end{array}
\end{array}$$
-(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 answer of Use the following to answer questions :...

Question 11

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 received from consuming additional units of a good. As you consume more turkey relative to mashed potatoes, the additional satisfaction (marginal utility) from each additional unit of turkey will eventually decrease, as you become relatively more full and less interested in consuming more turkey.

Question 12

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 more units are consumed of a particular good, the satisfaction or utility gained from each additional unit decreases. Therefore, option B is true as each additional piece of pie gives less marginal utility.

Question 13

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Exercise and Total Utility }\
\begin{array} { l c } 
\hline \begin{array} { l } 
\text { Hours of } \
\text { Exercise }
\end{array} & \text { Total Utility } \
\hline 0 & 0 \
1 & 5 \
2 & 15 \
3 & 23 \
4 & 29 \
5 & 33 \
\hline
\end{array}
\end{array}$$
-(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 answer of Use the following to answer questions :...

Question 14

Use the following to answer questions : $$\begin{array}{l}
\text { Table: Exercise and Total Utility }\
\begin{array} { l c } 
\hline \begin{array} { l } 
\text { Hours of } \
\text { Exercise }
\end{array} & \text { Total Utility } \
\hline 0 & 0 \
1 & 5 \
2 & 15 \
3 & 23 \
4 & 29 \
5 & 33 \
\hline
\end{array}
\end{array}$$
-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

The answer of Use the following to answer questions :...

Question 15

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

Marginal utility is the additional satisfaction or benefit that a consumer receives from consuming one more unit of a good or service. In this case, it refers to the amount by which total utility rises when an additional slice of pie is consumed.

Question 16

Use the following to answer questions : $$\begin{array}{l}
\hline \text { Table: The Utility of Macaroni and Cheese }\
\begin{array} { l r r r r r r r r } 
\hline \text { Number of servings } & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 \
\text { Total utility } & 0 & 10 & 25 & 35 & 60 & 60 & 35 & 25 \
\hline
\end{array}
\end{array}$$
-(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 17

Use the following to answer questions : $$\begin{array}{l}
\hline \text { Table: The Utility of Macaroni and Cheese }\
\begin{array} { l r r r r r r r r } 
\hline \text { Number of servings } & 0 & 1 & 2 & 3 & 4 & 5 & 6 & 7 \
\text { Total utility } & 0 & 10 & 25 & 35 & 60 & 60 & 35 & 25 \
\hline
\end{array}
\end{array}$$
-(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 18

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

The principle of diminishing marginal utility states that as an individual consumes more of a good or service, the additional satisfaction or utility derived from each additional unit of the good or service decreases. In other words, the marginal utility of a good or service decreases as its consumption increases.

Question 19

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 is the change in total utility from consuming an additional unit. Therefore, the best choice is A, which is the change in total utility from consuming an additional serving.

Question 20

The law of diminishing marginal utility indicates that the slope of the marginal utility curve is generally:
A) negative.
B) vertical.
C) horizontal.
D) positive.

Accepted Answer

The law of diminishing marginal utility states that as a consumer consumes more units of a good or service, the additional satisfaction from each additional unit decreases. This leads to a negative slope of the marginal utility curve, reflecting the diminishing utility or satisfaction gained from each additional unit consumed.

Quiz 10: The Rational Consumer

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 ___.

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

Freddy has eaten three pogos while visiting Canada's Wonderland,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 pogo,the:

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

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

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

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

The principle of diminishing marginal utility:

The marginal utility of eating sweet potatoes is the:

The law of diminishing marginal utility indicates that the slope of the marginal utility curve is generally: