Question 1

When Alex eats 1 slice of pizza, his total utility is 80; when Alex eats 2 slices of pizza, his total utility is 120. Alex's marginal utility from the second pizza is

Accepted Answer

A)  200. 
B)  80. 
C)  60. 
D)  40. 
A)  200. 
B)  80. 
C)  60. 
D)  40.

Question 2

As a person consumes more and more slices of pizza, the marginal utility of each extra slice diminishes.

Accepted Answer

A) True 
 B)False

Question 3

Bobby consumes only chocolate ice cream and vanilla ice cream. He is spending all of his income. His marginal utility of chocolate is 200 and his marginal utility of vanilla is 100, and the price of chocolate is $2.00 per scoop and the price of vanilla is $1.00 per scoop. Bobby has maximized his

Accepted Answer

A)  marginal utility of chocolate ice cream. 
B)  marginal utility of vanilla ice cream. 
C)  marginal utilities of chocolate ice cream and vanilla ice cream. 
D)  total utility. 
A)  marginal utility of chocolate ice cream. 
B)  marginal utility of vanilla ice cream. 
C)  marginal utilities of chocolate ice cream and vanilla ice cream. 
D)  total utility.

Question 4

The marginal utility of a third skirt is

Accepted Answer

A)  three times the average utility of the three skirts. 
B)  three skirts times the price of a skirt. 
C)  the total utility of three skirts divided by three. 
D)  the change in total utility from the third skirt. 
A)  three times the average utility of the three skirts. 
B)  three skirts times the price of a skirt. 
C)  the total utility of three skirts divided by three. 
D)  the change in total utility from the third skirt.

Question 5

Shaniq has seen two movies this week and two baseball games. Her marginal utility of one more movie is 20 and her marginal utility of one more baseball game is 30. Shaniq will go to a baseball game tonight, rather than to another movie

Accepted Answer

A)  no matter how much more the baseball game costs compared to the movie. 
B)  if the baseball game costs $10.00 and the movie costs $7.00. 
C)  if the baseball game costs $10.00 and the movie costs $5.00. 
D)  Both answers B and C are correct. 
A)  no matter how much more the baseball game costs compared to the movie. 
B)  if the baseball game costs $10.00 and the movie costs $7.00. 
C)  if the baseball game costs $10.00 and the movie costs $5.00. 
D)  Both answers B and C are correct.

Question 6

As you consume more and more of any good, you experience ________ utility.

Accepted Answer

A)  diminishing marginal 
B)  diminishing total 
C)  negative marginal 
D)  increasing marginal 
A)  diminishing marginal 
B)  diminishing total 
C)  negative marginal 
D)  increasing marginal

Question 7

The predictions of marginal utility theory

Accepted Answer

A)  contradict the idea that the demand curve slopes downward. 
B)  support the idea that the demand curve slopes downward. 
C)  support the idea that the supply curve slopes upward. 
D)  contradict the idea that the supply curve slopes upward. 
A)  contradict the idea that the demand curve slopes downward. 
B)  support the idea that the demand curve slopes downward. 
C)  support the idea that the supply curve slopes upward. 
D)  contradict the idea that the supply curve slopes upward.

Question 8

-Lisa spends all her income on pizzas and DVDs. The above table shows Lisa's marginal utility for pizza and marginal utility for DVDs. If the price of a pizza is $10 and the price of a DVD is $10 and Lisa has $40 to spend on the two goods, what combination of pizza and DVDs will maximize her utility?

Accepted Answer

A)  1 DVD and 3 pizzas 
B)  2 DVDs and 2 pizzas 
C)  2 DVDs and 4 pizzas 
D)  3 DVDs and 5 pizzas 
A)  1 DVD and 3 pizzas 
B)  2 DVDs and 2 pizzas 
C)  2 DVDs and 4 pizzas 
D)  3 DVDs and 5 pizzas

Question 9

Suppose the price of a soda is $2 each, the price of a hot dog is $3 each and the budget is $20. If the marginal utility of the fourth soda is 100 and the marginal utility of the fourth hot dog is 150, to maximize utility, a person will buy

Accepted Answer

A)  4 sodas and 4 hot dogs. 
B)  more hotdogs than 4 and fewer sodas than 4 because hot dogs provide more utility. 
C)  more sodas than 4 to increase their utility. 
D)  fewer sodas than 4 and more hot dogs than 4. 
A)  4 sodas and 4 hot dogs. 
B)  more hotdogs than 4 and fewer sodas than 4 because hot dogs provide more utility. 
C)  more sodas than 4 to increase their utility. 
D)  fewer sodas than 4 and more hot dogs than 4.

Question 10

Magazines Chocolate bars
  
-Sonya's budget for magazines and chocolate bars is $50. Her marginal utility from these goods is shown in the table above. If the price of a magazine is $5 and the price of a chocolate bar is $2.50, which of the following combinations maximizes Sonya's utility?

Accepted Answer

A)  1 magazine and 18 chocolate bars 
B)  2 magazines and 20 chocolate bars 
C)  3 magazines and 14 chocolate bars 
D)  5 magazines and 10 chocolate bars 
A)  1 magazine and 18 chocolate bars 
B)  2 magazines and 20 chocolate bars 
C)  3 magazines and 14 chocolate bars 
D)  5 magazines and 10 chocolate bars

Question 11

-The above table shows Tammy's total utility from streaming videos and CDs. If Tammy has $110 to spend on videos and CDs and if the price of a streamed video is $10 and the price of a CD is $20, then the maximum utility Tammy can attain is

Accepted Answer

A)  1700. 
B)  300. 
C)  1580. 
D)  250. 
A)  1700. 
B)  300. 
C)  1580. 
D)  250.

Question 12

-The above table shows Tammy's total utility from streaming videos and CDs. If Tammy has $70 to spend on videos and CDs and if the price of a streamed video is $10 and the price of a CD is $20, then the maximum utility Tammy can attain is

Accepted Answer

A)  450. 
B)  1280. 
C)  1150. 
D)  1200. 
A)  450. 
B)  1280. 
C)  1150. 
D)  1200.

Question 13

Are your total and marginal utility of ice cream schedules determined by the price of ice cream?

Accepted Answer

No. Your total and marginal utility are

Question 14

Marginal utility measures the

Accepted Answer

A)  total utility from consumption. 
B)  additional utility from an additional unit of consumption. 
C)  average utility from an additional unit of consumption. 
D)  additional cost of an additional unit of consumption. 
A)  total utility from consumption. 
B)  additional utility from an additional unit of consumption. 
C)  average utility from an additional unit of consumption. 
D)  additional cost of an additional unit of consumption.

Question 15

-Betsy's utility depending from her consumption of coffee is shown in the table above. If the price of a cup of coffee is $2, Betsy's marginal utility per dollar from the 2nd cup of coffee per day is

Accepted Answer

A)  15. 
B)  40. 
C)  20. 
D)  32.5. 
A)  15. 
B)  40. 
C)  20. 
D)  32.5.

Question 16

-The above table shows Homer's utility from boxes of doughnuts. As Homer's consumption of doughnuts increases, his

Accepted Answer

A)  marginal utility is positive and increasing. 
B)  marginal utility is positive but decreasing. 
C)  marginal utility is negative but increasing. 
D)  marginal utility is negative and decreasing. 
A)  marginal utility is positive and increasing. 
B)  marginal utility is positive but decreasing. 
C)  marginal utility is negative but increasing. 
D)  marginal utility is negative and decreasing.

Question 17

The cost of basics like milk, bread, potatoes and bananas has jumped in the past year, forcing families to nix luxuries, steer away from organic goods and buy more house brands. "I think it's affecting everybody," said Elize Joseph 48, a nursing attendant. "To spend $40 on groceries is nothing. It doesn't go a long way." When food prices increase, what will happen to Elize's total utility?

Accepted Answer

A)  It increases. 
B)  It stays the same. 
C)  It decreases. 
D)  It cannot be determined without knowing her total income. 
A)  It increases. 
B)  It stays the same. 
C)  It decreases. 
D)  It cannot be determined without knowing her total income.

Question 18

To maximize utility, why does a consumer consume the combination of goods that equates marginal utility per dollar on the different goods rather than just equating the marginal utility of the different goods?

Accepted Answer

The consumer equates the marginal utilit

Question 19

A decrease in consumption will result in

Accepted Answer

A)  both total utility and marginal utility decreasing. 
B)  total utility increasing, but marginal utility decreasing. 
C)  total utility decreasing, but marginal utility increasing. 
D)  both total utility and marginal utility increasing. 
A)  both total utility and marginal utility decreasing. 
B)  total utility increasing, but marginal utility decreasing. 
C)  total utility decreasing, but marginal utility increasing. 
D)  both total utility and marginal utility increasing.

Question 20

Milkshakes Sodas
  
-The table above shows Tom's total utility from milkshakes and sodas. What is the marginal utility of Tom's eighth milkshake?

Accepted Answer

A)  32 units 
B)  20 units 
C)  16 units 
D)  10 units 
A)  32 units 
B)  20 units 
C)  16 units 
D)  10 units

When Alex eats 1 slice of pizza, his total utility is 80; when Alex eats 2 slices of pizza, his total utility is 120. Alex's marginal utility from the second pizza is

As a person consumes more and more slices of pizza, the marginal utility of each extra slice diminishes.

Bobby consumes only chocolate ice cream and vanilla ice cream. He is spending all of his income. His marginal utility of chocolate is 200 and his marginal utility of vanilla is 100, and the price of chocolate is $2.00 per scoop and the price of vanilla is $1.00 per scoop. Bobby has maximized his

The marginal utility of a third skirt is

Shaniq has seen two movies this week and two baseball games. Her marginal utility of one more movie is 20 and her marginal utility of one more baseball game is 30. Shaniq will go to a baseball game tonight, rather than to another movie

As you consume more and more of any good, you experience ________ utility.

The predictions of marginal utility theory

Suppose the price of a soda is $2 each, the price of a hot dog is $3 each and the budget is $20. If the marginal utility of the fourth soda is 100 and the marginal utility of the fourth hot dog is 150, to maximize utility, a person will buy

Magazines Chocolate bars -Sonya's budget for magazines and chocolate bars is $50. Her marginal utility from these goods is shown in the table above. If the price of a magazine is $5 and the price of a chocolate bar is $2.50, which of the following combinations maximizes Sonya's utility?

-The above table shows Tammy's total utility from streaming videos and CDs. If Tammy has $110 to spend on videos and CDs and if the price of a streamed video is $10 and the price of a CD is $20, then the maximum utility Tammy can attain is

-The above table shows Tammy's total utility from streaming videos and CDs. If Tammy has $70 to spend on videos and CDs and if the price of a streamed video is $10 and the price of a CD is $20, then the maximum utility Tammy can attain is

Are your total and marginal utility of ice cream schedules determined by the price of ice cream?

Marginal utility measures the

-Betsy's utility depending from her consumption of coffee is shown in the table above. If the price of a cup of coffee is $2, Betsy's marginal utility per dollar from the 2nd cup of coffee per day is

-The above table shows Homer's utility from boxes of doughnuts. As Homer's consumption of doughnuts increases, his

To maximize utility, why does a consumer consume the combination of goods that equates marginal utility per dollar on the different goods rather than just equating the marginal utility of the different goods?

A decrease in consumption will result in

Milkshakes Sodas -The table above shows Tom's total utility from milkshakes and sodas. What is the marginal utility of Tom's eighth milkshake?

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 8: Utility and Demand

When Alex eats 1 slice of pizza, his total utility is 80; when Alex eats 2 slices of pizza, his total utility is 120. Alex's marginal utility from the second pizza is

As a person consumes more and more slices of pizza, the marginal utility of each extra slice diminishes.

Bobby consumes only chocolate ice cream and vanilla ice cream. He is spending all of his income. His marginal utility of chocolate is 200 and his marginal utility of vanilla is 100, and the price of chocolate is $2.00 per scoop and the price of vanilla is $1.00 per scoop. Bobby has maximized his

The marginal utility of a third skirt is

Shaniq has seen two movies this week and two baseball games. Her marginal utility of one more movie is 20 and her marginal utility of one more baseball game is 30. Shaniq will go to a baseball game tonight, rather than to another movie

As you consume more and more of any good, you experience ________ utility.

The predictions of marginal utility theory

Suppose the price of a soda is $2 each, the price of a hot dog is $3 each and the budget is $20. If the marginal utility of the fourth soda is 100 and the marginal utility of the fourth hot dog is 150, to maximize utility, a person will buy

Magazines Chocolate bars -Sonya's budget for magazines and chocolate bars is $50. Her marginal utility from these goods is shown in the table above. If the price of a magazine is $5 and the price of a chocolate bar is $2.50, which of the following combinations maximizes Sonya's utility?

-The above table shows Tammy's total utility from streaming videos and CDs. If Tammy has $110 to spend on videos and CDs and if the price of a streamed video is $10 and the price of a CD is $20, then the maximum utility Tammy can attain is

-The above table shows Tammy's total utility from streaming videos and CDs. If Tammy has $70 to spend on videos and CDs and if the price of a streamed video is $10 and the price of a CD is $20, then the maximum utility Tammy can attain is

Are your total and marginal utility of ice cream schedules determined by the price of ice cream?

Marginal utility measures the

-Betsy's utility depending from her consumption of coffee is shown in the table above. If the price of a cup of coffee is $2, Betsy's marginal utility per dollar from the 2nd cup of coffee per day is

-The above table shows Homer's utility from boxes of doughnuts. As Homer's consumption of doughnuts increases, his

To maximize utility, why does a consumer consume the combination of goods that equates marginal utility per dollar on the different goods rather than just equating the marginal utility of the different goods?

A decrease in consumption will result in

Milkshakes Sodas -The table above shows Tom's total utility from milkshakes and sodas. What is the marginal utility of Tom's eighth milkshake?

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters