Practice Quiz 1 (utility)

Total utility

- is the total amount of satisfaction derived from consuming a particular quantity of a good. - for quantity Y can be calculated by summing the marginal utilities of each unit that comprises quantity Y. - is the sum of the amounts of utility derived from consuming each unit of a good.

Refer to Exhibit 21-4. What value goes in blank (C)?

10

Refer to Exhibit 34-9. For country X, the opportunity cost of producing one unit of good B is __________ unit(s) of good A

10

Suppose you are eating buffalo wings at a local happy hour. The total utils from doing so after the fourth, fifth, sixth, and seventh wings are 80, 116, 136, 146, respectively. The marginal utility of the seventh wing is __________ utils.

10

Economists usually assume that money has __________ marginal utility.

decreasing

Marginal utility is always a positive number

false

If countries 1 and 2 produce only two goods, A and B, and they have the same opportunity cost for the production of good A (and thus good B), then

neither country will specialize in the production of a good, and there will be no incentive for trade.

the absence of value judgements is the essence of

positive economics

an indifference curves shows

the bundles of two goods that give an individual equal total utility.

If the MU/P ratio for two goods is the same, then

the slope of the budget constraint between the two goods is equal to the marginal rate of substitution (MRS) between the two goods.

the theory of consumer choice assumes that consumers attempt to maximize

total utility

It is possible for total utility to rise as marginal utility falls.

true