Econ Midterm

The law of demand indicates that as the cost of an activity

Rises, less of the activity will occur

Refer to the accompanying table. The marginal utility of the 4th dinner out per week is:

15

Refer to the accompanying figure. The marginal utility of the 5 th apple is

-5

Refer to the accompanying figure. The marginal utility of the 7th pizza is

-5

Refer to the accompanying table. The total utility of consuming two dinners out per week is:

175

Refer to the accompanying figure. The marginal utility of the 6th pizza is:

5

Refer to the accompanying figure. The total utility of consuming two pizzas a week is

55

Refer to the accompanying table. The marginal utility of the 3rd dinner is:

60

Refer to the accompanying figure. The total utility of consuming 4 pizzas a week is

90

Shelter for homeless example is an example of:

A need

As Lynn eats more pizza, we would typically expect her marginal utility from eating pizza to:

Decrease

It is impossible for total utility to be ______ when marginal utility is ______.

Decreasing; positive

According to the law of demand, when the price of shoes ______, people will consume ______ shoes.

Falls; more

During Thanksgiving you participated in a pumpkin-pie eating contest. You really enjoyed the first two pies, the third one was okay, but as soon as you ate the fourth one you became ill and lost the contest. Your total utility ______ with the first three pies you ate.

Increased

In some countries, medical care is provided free-of-charge to citizens and is paid for by the government. In those countries, medical care

Is rationed by some non-monetary method.

Joe is shopping for a new computer. A computer can be delivered to Joe's home for $1,200. Alternatively, Joe can pick up the same computer at the warehouse for $1,000. How should Joe buy the computer?

Joe should drive to the warehouse if his cost of driving to the warehouse is less than $200.

The tendency for consumers to purchase more of a good or service as its price falls is captured by the:

Law of demand.

If Terry's total utility is maximized when he owns 10 pairs of shoes, then Terry's total utility from owning 7 pairs of shoes is ______ Terry's total utility from owning 8 pairs.

Less than

In most markets, scarce goods or services are rationed among competing users using

Monetary prices

Higher education is a ______ and assigned textbooks are ______

Want; wants

The goal of utility maximization is to allocate your ______ in order to maximize your ______.

Resources; satisfaction

The additional utility gained from consuming an additional unit of a good is called:

Marginal utility

During Thanksgiving you participated in a pumpkin-pie eating contest. You really enjoyed the first two pies, the third one was okay, but as soon as you ate the fourth one you became ill and lost the contest. You got ______ utility from eating the first pie than from eating the third pie.

More

Blair has vast riches and consumes thousands of dollars' worth of consumer goods each week, yet she is never satisfied. Why not?

People's wants are unlimited

The tendency for marginal utility to decline as consumption increases beyond some point is called

The law of diminishing marginal utility

If marginal utility is positive, then as consumption increases

Total utility will increase

According to economists, the satisfaction people get from their consumption activities is called:

Utility

Growing rice requires extensive irrigation in California. Economists consider water to be a ______ for rice farmers in California

Want

Taking a limousine to a five-star restaurant in New York is a:

Want to both Joe Average and Richie Rich

After subsistence levels of food, shelter, and clothing have been provided, economists refer to all other goods and services as

Wants