quiz 6

"C. positive, negative, or zero."

Marginal utility can be: "A. positive, but not negative." "B. positive or negative, but not zero." "C. positive, negative, or zero." "D. decreasing, but not negative."

B. change in total utility obtained by consuming one more unit of a good.

QUESTION 7 Marginal utility is the: 1. A. sensitivity of consumer purchases of a good to changes in the price of that good. B. change in total utility obtained by consuming one more unit of a good. C. change in total utility obtained by consuming another unit of a good divided by the change in the price of that good. D. total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed.

B. 20

Refer to the above data. The value for W is: A. 15 B. 20 C. 25 D. 30

A. 15

Refer to the above data. The value for X is: A. 15 B. 5. C. 55 D. 10

D. 45.

Refer to the above data. The value for Y is: A. 25. B. 30. C. 40. D. 45.

A. -5.

Refer to the above data. The value for Z is: A. -5. B. +5. C. -10. D. zero.

B. demand curves slope downward.

The law of diminishing marginal utility explains why: A. supply curves slope upward. B. demand curves slope downward. C. addicts can never get enough. D. people will only consume their favorite goods and not try new things.

B. beyond some point additional units of a product will yield less and less extra satisfaction to a consumer.

The law of diminishing marginal utility states that: A. total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed. B. beyond some point additional units of a product will yield less and less extra satisfaction to a consumer. C. price must be lowered to induce firms to supply more of a product. D. it will take larger and larger amounts of resources beyond some point to produce successive units of a product.

B. marginal utility obtained from the last dollar spent on each product is the same.

To maximize utility a consumer should allocate money income so that the: A. elasticity of demand on all products purchased is the same. B. marginal utility obtained from the last dollar spent on each product is the same. C. total utility derived from each product consumed is the same. D. marginal utility of the last unit of each product consumed is the same.

A. satisfaction that a consumer derives from a good or service.

Utility refers to the: A. satisfaction that a consumer derives from a good or service. B. rate of decline in a product demand curve. C. relative scarcity of a product. D. usefulness of a product.