ECON ch 5

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Chen's total utility from consuming five slices of pizza is 10 utils. After consuming her sixth slice, her total utility rises to 11 utils. The marginal utility of the sixth slice is

1

Simon's total utility from consuming one t-shirt is 30 utils. After consuming his second t-shirt, his total utility rises to 50 utils. The marginal utility of the second t-shirt is ___ utils

20

Suppose Charlie had three slices of pizza for lunch. If the first slice gave him 10 utils of satisfaction, the second 8, and the third 4, then his total utility from lunch was

22

______ is calculated as the difference between the maximum price a consumer is willing to pay for a product and the actual price paid.

Consumer surplus

The idea that we strive for ever higher levels of consumption to satisfy basic drives for security, sex, and ego gratifications is the _______ perspective of demand.

Freudian

According to the law of diminishing marginal utility, what happens to additional satisfaction or utility as a consumer acquires additional units of a given product?

It declines

Which of the following does the idea of diminishing marginal utility help to explain?

Law of demand

utility is the extra satisfaction or pleasure a consumer realizes from consuming an additional unit of a particular product.

Marginal

What is the term used to refer to charging different prices to different buyers of a specific product?

Price discrimination

How is total revenue calculated?

Price × Quantity

____ utility is the full amount of satisfaction or pleasure a person derives from consuming some specific quantity—for example, 10 units of a good or service.

Total

True or false: Economists accept consumer tastes as the outcome of sociopsychiatric and cultural influences.

True

True or false: The utility of a good is the pleasure or satisfaction obtained from a product.

True

is the satisfaction or pleasure one gets from consuming a good or service. (Use only one word per blank.)

Utility

A consumer's desires for goods and services are assumed by economists to originate in the structure of personality and social dynamics and _____ explained by economic theory.

are not

The law of diminishing marginal utility explains why the___ curve for a given product slopes downward.

demand

The willingness and ability to buy specific quantities of a good at alternative prices in a given time period, Ceteris Paribus, is the definition of

demand

The willingness and ability to buy specific quantities of a good at alternative prices in a given time period, Ceteris Paribus, is the definition of ______.

demand

A consumer's maximum willingness to pay for a Porsche 918 Spyder ___

depends on their preferences, income, and tastes, shows where they are positioned on the market demand curve

When Hannah consumes apples, and each additional apple yields a smaller amount of additional satisfaction, she is exemplifying the law of ______.

diminishing marginal utility

When Marco consumes successive slices of pizza, and each additional slice yields a smaller amount of additional satisfaction, he is experiencing the law of:

diminishing marginal utility

The downward-sloping demand curve illustrates the declining nature of marginal utility because people are willing to buy additional quantities if the price ______.

falls

Consumer surplus is the difference between the _____ price a consumer is willing to pay for a product and the price actually paid.

highest

Marginal utility

is the extra satisfaction from the consumption of one more unit of some good or service

The market demand curve for a good _____.

is the sum of all the individual demand curves for the good

Because marginal utility diminishes, consumers are willing to pay progressively _____ for additional quantities of a product.

less

The law of diminishing ___utility states that added satisfaction declines as additional units of a given product are consumed.

marginal

The total quantities of a good or service people are willing and able to buy at alternative prices in a given time period is

market demand

The more marginal utility a product delivers, the

more a consumer will be willing to pay for it.

The idea that we strive for ever higher levels of consumption to satisfy basic drives for ____, sex, and ego gratifications is the Freudian perspective of demand.

security

Economists say that as we consume successive units of a good, we get smaller and smaller amounts of marginal or extra utility. This claim is known as

the law of diminishing marginal utility

If a person is not willing to buy a new car, then

their willingness to pay for a new car is $0, they are not part of the market demand for a new car

___is the amount a seller receives from selling a product during some period of time

total revenue

Total ___is the amount of satisfaction or pleasure a person obtains from the entire consumption of a product.

utility

For illustration purposes, utility can be measured in terms of imaginary units called

utils


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