econ test 4
downward sloping
According to the law of diminishing marginal utility, the marginal utility curve is ____
ratio of marginal utility to price is the same for both goods for the last dollar spent on each good
Suppose that an individual consumes just two goods: Big Macs and milkshakes. In order to reach consumer equilibrium, the individual must arrange the consumption of Big Macs and milkshakes so that the:
the popcorn, whether he has the $50 or not
Suppose that for Merv the marginal utility of $50-per-serving caviar is 100 and the marginal utility of $1-per-serving popcorn is 10. For his snack, Merv should buy:
the principle of diminishing marginal utility
a fall in marginal utility reflects:
total utility is decreasing
a rational consumer should not consume more of a good when:
way a producer will respond to a change in price
a util represents a unit of measurement for the:
marginal utility is negative
a utility-maximizing consumer would never purchase a good if the:
the extra satisfaction a person derives from consuming an additional unit of a good
marginal utility is defined as
total utility when an extra unit of output is consumed
marginal utility is the change in:
decreases
As more Big Macs are consumed each day, the marginal utility that a person gets from each additional Big Mac:
consumer is in equilibrium
Assume that an individual consumes only coffee and bagels and that the last cup of coffee yields 12 utils and the last bagel 6 utils. If the price of a cup of coffee is $1 and the price of the bagel is $.50, we can conclude that the:
consumer should eat fewer hot dogs and more cola
Assume that an individual consumes only hotdogs and colas and that the last hotdog consumed yields 15 utils and the last cola 10 utils. If the price of a hotdog is $1 and the price of a cola is $.50, we can conclude that the:
marginal utility of the next haircut would be zero or negative
Bonnie gets her hair cut at her usual salon and is very happy with the results. Later that afternoon, she goes to the mall and sees that a hair salon is giving away free haircuts only on that day. If Bonnie does not take advantage of the giveaway, it is because the:
the marginal utility per dollar's worth of the two goods is the same for the last dollar spent on each good
Consumers should continue to rearrange their consumption of two goods until:
decreases; increases
Generally speaking, as more of a particular good is purchased, a consumer's marginal utility ____ and total utility ____
law of diminishing marginal utility
If the first four units of a good consumed have marginal utilities of 8, 4, 2, and 1, respectively, this trend is an indication of the:
rises
If the price of a good falls, the marginal utility per dollar spent on that good:
MU/P of the good falls below the MU/P of other goods.
If the price of a product rises, consumers buy less of the good because the:
negative
On Thanksgiving, Jake's mother gives him a huge platter of food. If Jake were to keep eating just to please his mother (even when he really wanted to stop), his marginal utility would be:
rise, but at slower and slower rates
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:
8,4,2,1
The law of diminishing marginal utility exists for the first four units of a good if they have marginal utilities of:
31; 10+12+9
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 third unit?
law of diminishing utility
The statement "as more of a good is consumed, the utility a person derives from each additional unit diminishes" is known as the:
as more of the good is consumed
as a general rule, marginal utility will be less:
zero
at the point where total utility is at its peak, marginal utility is:
increasing
if marginal utility is positive, then total utility is:
negative
if total utility is falling, marginal utility is:
some change in consumption will increase satisfaction
if utility is not maximized, then:
marginal utility
the amount by which an additional unit of a 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:
hard to measure, because it is a subjective concept
utility is
satisfaction
utility is most closely defined by this term
decreases as an individual consumes more of a product
utility theory assumes that marginal utility:
zero
when total utility is at a maximum, marginal utility is:
