More Chapter 9 Questions

Consider a good whose consumption takes place publicly. Your decision to buy that good depends a. both on the characteristics of the product and on how many other people are buying the good b. only on the characteristic c. only on how many other people buy the food d. only on the price of the good

a. both on the characteristics of the product and on how many other people are buying the good

If a consumer receives 22 units of marginal utility for consuming the first can of soda, 20 units from consuming the second, and 15 from the third, the total utility of consuming the three units is a. 57 utility units b. 35 utility units c. 15 utility units d. unknown more info is needed

a. 57 utility units 22+20+15=57 just add up

Economists assume that the goal of the consumer is to a. do as little work as possible to survive b. make themselves as well off as possible c. expend all their income d. consume as much as possible

b. make themselves as well off as possible -consumers will always want more -never satisfied -we must learn to settle

If, when you consume another piece of candy, your marginal utility is zero, then a. you want more candy b. you have maximized your total utility from consuming candy c. you have not yet reached the point of diminishing marginal utility d. you should consume less candy

b. you have maximized your total utility from consuming candy

Consumers maximize total utility within their budget constraint by a. buying the cheapest goods they can find b. buying whatever they like the best c. buying the goods with the largest marginal utility per dollar spent d. spending the same dollar amount for each good

c. buying the goods with the largest marginal utility per dollar spent

Marginal utility is the a. total satisfaction received from consuming a given number of units of a product b. average satisfaction received from consuming a product c. extra satisfaction received from consumer one more unit of a product d. satisfaction achieved when a consumer has had enough o a product

c. extra satisfaction received from consumer one more unit of a product

In order to derive an individuals demand curve for salmon, we would observe what happens to the utility-maximizing bundle when we change a. income and hold everything else constant b. tastes and preferences and hold everything else constant c. the price of the product and hold everything else constant d. the price of a close substitute and hold everything else constant

c. the price of the product and hold everything else constant

An item has utility for a consumer if it a. is scarce b. has a high price c. is something everyone else wants d. generates enjoyment of satisfaction

d. generates enjoyment of satisfaction

If your total satisfaction increases when you consume another unit, your marginal utility must be a. increasing b. decreasing c. negative d. positive

d. positive

Marginal Utility can be a. negative b. zero c. positive d. positive, negative or zero

d. positive, negative or zero

If, as a person consumers more and more of a good, each additional unit adds less satisfaction than the previous unit consumed, we are seeing the workings of a. the law of demand b. the law of supply c. the law of increasing marginal opportunity cost d. the law of diminishing marginal utility

d. the law of diminishing marginal utility

If a consumer receives 20 units of utility from consuming two candy bars, and 25 units of utility from consuming three candy bars, the marginal utility of the second candy bar is a. 25 utility units b. 20 utility units c. 5 utility units d. unknown as more info is needed

d. unknown as more info is needed