Unit Test #4- Consumer Utility

the first 4 units of a good consumed have marginal utilities of 8, 4, 2, and 1.......this trend is the indication of:

law of diminishing marginal utility

the statement "as more of a good is consumed, the utility a person derives from each additional unit diminishes" is known as the:

law of diminishing marginal utility

the amount by which an additional unit of good or service increases a consumer's total utility is:

marginal utility

the change in total utility due to a 1-unit change in the quantity consumed is:

marginal utility

a utility-maximizing consumer would NEVER purchase a good if the:

marginal utility is negative

bonnie gets her haircut by her normal hair dresser and is happy with results. later, she goes to the mall and sees that they are offering free haircuts. if bonnie does NOT take advantage of the give away, it is because the:

marginal utility of the net haircut would be zero or negative

marginal utility is defined as:

the extra satisfaction a person derives from consuming an additional unit of a good

the total utilities associated with the first 5 units of consmption of good X are 15, 30, 40 47 & 50 respectively. what is the marginal utility associated with the 3rd unit?

10

assume the total utilities corresponding to the first 4 units of a product are 8, 12, 14, and 15. the marginal utility of the 3rd unit consumed is:

2

The marginal utilities associated with the first 4 units of consumption of good Y are 10, 12, 9, and 7 respectively. What is the total utility associated with the 3rd unit?

31

assume the total utilities corresponding to the first 4 units of a product are 8, 12, 14, and 15. the marginal utility of the 2nd unit consumed is:

4

the law of diminishing utility exists for the first four units of a good if they have marginal utilities of: __, __, __, __

8, 4, 2, 1

as a general rule, marginal utility will be less:

as more of a good is consumed

as more big macs are consumed each day, the marginal utility that a person gets from each additional big mac:

decreases

utility theory assumes that marginal theory:

decreases as an individual consumes more of a product

generally speaking, as more of a particular good is purchased, a consumer's marginal utility _____ and total utility _____.

decreases; increases

according to the law of diminishing marginal utility, the marginal utility curve is ______________

downward sloping

in the general expression: marginal "anything" = ______ "anything" . that comes from additional units of "some activity"

extra "anything"

A "util" represents a unit of measurement for the:

happiness a person obtains from consuming a good

Utility is _____ to measure, because it is a _________ object

heard to measure; subjective object

if utility is NOT maximized, then some change in consumption will _____________ _______________.

increase satisfaction

if marginal utility is positive, then total utility is:

increasing

if total utility is falling, marginal utility is:

negative

on thanksgiving, jakes mother gives him a huge platter of food. if jake were to keep eating just to please his mother (even though he was full), his marginal utility would be: ___________________

negative

suppose the law of diminishing marginal utility holds for coffee. As a person drinks more coffee during the day, the total utility he or she receives will:

rise, but at slower and slower rates

if the price of a good falls, the marginal utility per dollar spent on that good:

rises

Utility is most likely closely defined by which of the following terms?

satisfaction

what is marginal utility?

the "extra" utility that comes from additional units of consumption

Law of diminishing marginal activity:

the principal that the extra satisfaction of a product DECLINES as people consume more in a given time period.

a fall in marginal utility reflects:

the principle of diminishing marginal utility

what is utility?

the satisfaction/happiness that consumers receive from consuming a product or service

what is total utility?

the total amount of satisfaction received from ALL the units of a product

A rational consumer should NOT consume more of a good when:

total utility is decreasing

marginal utility is the change in:

total utility when an extra unit of output is consumed

When total utility is at a maxium, marginal utility is _________.

zero

at the point where total utility is at its peak, marginal utility is:

zero