Microeconomics Midterm

Blair has vast riches and can spend her money without worrying about it, but is never satisfied which means

people's wants are unlimited

if the market for butter is perfectly competitive, then the demand curve will be

perfectly elastic

the goal of utility maximization is to allocate your _____ to maximize______

resources; satisfaction

the law of demand indicates that as cost of an activity

rise less of it will occur

as lynn eats more pizza we expect her marginal utility

to decrease

individual supply curves generally slope

up because of increasing opportunity

according to economists the satisfaction people get from their consumptions

utility

During Thanksgiving last year, you participated in pumpkin pie making as soon as you are at the fourth you were ill

utility increased with the first three pies

if a consumer buys two different goods, the rational spending rule requires that ratio of

utility to price be equal for the two goods

growing rice requires extensive irrigation in Cali economist consider water to be

want

taking a limousine to a five star is a

want to both joe and richie rich

higher education and assigned textbooks

want;want

After subsistence levels of food, shelter, and clothing have been provided, economists refer to all other goods and services as:

wants

shelter for homeless people is an example of

a need

long run

a period of time efficiently long that all factors of production are variable

short run

a period of time sufficiently short that at least one factor of production is fixed

which of the following is a defining characteristics of all perfectly competitive markets?

all firms sell the same standardized products

According to the law of demand when the price___ of shoes ____ will consume

falls;more

In some countries, medical care is provided free-of-charge to citizens and is paid for by the government. in those countries medical care:

is rationed by non-monetary

the ___ combination of goods in the combination that yields the highest utility given a consumer's income

optimal

total utility of two dinners is 175, 100 from the first dinner and 75 from the second and total utility is 235 therefore

60

which of the following would be considered a factor of production i the provision of bus service?

Bus drivers

it is impossible for total utility to be _____ when marginal is _____

Decreasing; positive

Joe is shopping for a new computer. computer can be delivered to Joe's home for 1,200. alternatively, Joe can pick up the same computer at the warehouse for 1,000. How should Joe buy?

Joe should drive to the warehouse if his cost of driving is less than 200

an imperfectly competitive market is one that has

at least some influence over the market place

cory gets 18,23, and 25 of total utility from 10,11, and 12 others if they are 25 cents you can infer that cory is

experiencing diminishing marginal utility

let MUc denote utility of coffee and Pc denote the price of coffee it is expected that MUc/Pc will

fall

tendency for consumers to purchase more of a good or service as its price falls is captured by the

law of demand

the tendency for marginal utility to decline as consumption increases beyond some point is called

law of diminishing marginal utility

additional utility gained from consuming additional unit is called

marginal utility

in most markets, scarce goods or services are rationed among competing users using

monetary prices