Question 1

As your marginal utility declines,your _____ utility rises.

Accepted Answer

total

Question 2

-Given the demand curve in this graph,if price were $1.00,how much is consumer surplus?

Accepted Answer

A) $0 
B) $1.50 
C) $5.00 
D) $10.50 
A) $0 
B) $1.50 
C) $5.00 
D) $10.50 C

Question 3

We are maximizing our utility when the marginal utility of each good or service we purchase is _________ to its price.

Accepted Answer

equal

Question 4

According to the general utility formula,the marginal utility of a good divided by the price of that good is _______.

Accepted Answer

A) less that negative one 
B) equal to one 
C) greater than one 
D) equal to zero 
A) less that negative one 
B) equal to one 
C) greater than one 
D) equal to zero

Question 5

As you consume more and more of a service,

Accepted Answer

A) your consumer surplus is increasing. 
B) your consumer surplus is remaining constant. 
C) your consumer surplus is decreasing. 
A) your consumer surplus is increasing. 
B) your consumer surplus is remaining constant. 
C) your consumer surplus is decreasing.

Question 6

Suppose that your demand schedule for CDs is shown in the table below.
A)Your total utility from 4 CDs would be ____.
B)Your marginal utility from the fourth CD would be ____.
C)If the price were $2,your consumer surplus would be ____.
$$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 12 & 1 & & \
\hline \$ 10 & 2 & & \
\hline \$ 6 & 3 & & \
\hline \$ 4 & 4 & & \
\hline \$ 2 & 5 & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | c | c | c | c | }

Question 7

The difference between what you pay for some good or service and what you would have been willing to pay is called _______________________.

Accepted Answer

The answer of The difference between what you pay for...

Question 8

If your marginal utility from your last session with your personal trainer is equal to the price they charged you,then

Accepted Answer

A) you have had exactly the right number of sessions. 
B) you have had too many sessions. 
C) you have not had enough sessions. 
D) there is no way to determine whether you have had enough sessions. 
A) you have had exactly the right number of sessions. 
B) you have had too many sessions. 
C) you have not had enough sessions. 
D) there is no way to determine whether you have had enough sessions.

Question 9

Statement I: Marginal utility and consumer surplus are identical concepts.
Statement II: Utility is simply a measure of what the buyer is willing to pay for a good or service.

Accepted Answer

A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false. 
A) Statement I is true and statement II is false. 
B) Statement II is true and statement I is false. 
C) Both statements are true. 
D) Both statements are false.

Question 10

Given the information in the table below,find the marginal utility and the total utility.
$$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 70 & 1 & & \
\hline \$ 60 & 2 & & \
\hline \$ 50 & 3 & & \
\hline \$ 40 & 4 & & \
\hline \$ 30 & 5 & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | c | c | c | c | }

Question 11

Demand and Utility Table for Milk Shakes $$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 4 & 1 & & \
\hline \$ 3.50 & 2 & & \
\hline \$ 3.00 & 3 & & \
\hline \$ 2.50 & 4 & & \
\hline \$ 2.00 & 5 & & \
\hline
\end{array}$$
-If the price of milk shakes were $2.00 each,your consumer surplus would be

Accepted Answer

A) $15.00. 
B) $11.00. 
C) $10.00. 
D) $5.00. 
E) $2.00. 
A) $15.00. 
B) $11.00. 
C) $10.00. 
D) $5.00. 
E) $2.00.

Question 12

Table-Demand and Utility Table for action figures $$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 14 & 1 & & \
\hline \$ 12 & 2 & & \
\hline \$ 10 & 3 & & \
\hline \$ 8 & 4 & & \
\hline \$ 6 & 5 & & \
\hline
\end{array}$$
-If the price of action figures was $12.00 each,his consumer surplus would be

Accepted Answer

A) $2. 
B) $4. 
C) $12. 
D) $14. 
E) $26. 
A) $2. 
B) $4. 
C) $12. 
D) $14. 
E) $26.

Question 13

Bob Toshida has the demand schedule for dress shirts shown in the table below.
A)His total utility from three shirts would be ____.
B)His marginal utility from the fourth shirt would be ____.
C)If the price were $3,his consumer surplus would be ____.
$$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 15 & 1 & & \
\hline \$ 12 & 2 & & \
\hline \$ 9 & 3 & & \
\hline \$ 6 & 4 & & \
\hline \$ 2 & 5 & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | c | c | c | c | }

Question 14

When you maximize your utility of product A,the marginal utility of product A will equal the ___________.

Accepted Answer

The answer of When you maximize your utility of product...

Question 15

Utility (is/is not)_______ inherent in a particular good or service.

Accepted Answer

The answer of Utility (is/is not)_______ inherent in a particular...

Question 16

If total utility is decreasing,then

Accepted Answer

A) marginal utility is zero. 
B) marginal utility is decreasing but still greater than zero. 
C) marginal utility is equal to one. 
D) marginal utility is increasing. 
E) marginal utility is less than zero. 
A) marginal utility is zero. 
B) marginal utility is decreasing but still greater than zero. 
C) marginal utility is equal to one. 
D) marginal utility is increasing. 
E) marginal utility is less than zero.

Question 17

The law of diminishing marginal utility states that as we consume increasing amounts of a good or service,________________________.

Accepted Answer

we derive diminishin

Question 18

As people buy more of the same product,

Accepted Answer

A) their consumer surplus rises. 
B) their consumer surplus falls. 
C) their consumer surplus will fall to zero to maximize their total utility. 
D) the additional purchases do not affect their consumer surplus. 
A) their consumer surplus rises. 
B) their consumer surplus falls. 
C) their consumer surplus will fall to zero to maximize their total utility. 
D) the additional purchases do not affect their consumer surplus.

Question 19

"As we consume increasing amounts of a good or service,we derive diminishing utility from each additional unit consumed" defines _____________________________________.

Accepted Answer

The Law of

Question 20

Because some essential goods are sometimes cheap and some nonessential goods are sometimes very expensive,the _____________________ paradox developed.

Accepted Answer

The answer of Because some essential goods are sometimes cheap...

Exam 19: Theory of Consumer Behavior

As your marginal utility declines,your _____ utility rises.

-Given the demand curve in this graph,if price were $1.00,how much is consumer surplus?

We are maximizing our utility when the marginal utility of each good or service we purchase is _________ to its price.

According to the general utility formula,the marginal utility of a good divided by the price of that good is _______.

As you consume more and more of a service,

The difference between what you pay for some good or service and what you would have been willing to pay is called _______________________.

If your marginal utility from your last session with your personal trainer is equal to the price they charged you,then

Statement I: Marginal utility and consumer surplus are identical concepts. Statement II: Utility is simply a measure of what the buyer is willing to pay for a good or service.

Given the information in the table below,find the marginal utility and the total utility. Price Quantity Demanded Marginal Utility Total Utility \ 70 1 \ 60 2 \ 50 3 \ 40 4 \ 30 5

Demand and Utility Table for Milk Shakes Price Quantity Demanded Marginal Utility Total Utility \ 4 1 \ 3.50 2 \ 3.00 3 \ 2.50 4 \ 2.00 5 -If the price of milk shakes were $2.00 each,your consumer surplus would be

Table-Demand and Utility Table for action figures Price Quantity Demanded Marginal Utility Total Utility \ 14 1 \ 12 2 \ 10 3 \ 8 4 \ 6 5 -If the price of action figures was $12.00 each,his consumer surplus would be

When you maximize your utility of product A,the marginal utility of product A will equal the ___________.

Utility (is/is not)_______ inherent in a particular good or service.

If total utility is decreasing,then

The law of diminishing marginal utility states that as we consume increasing amounts of a good or service,________________________.

As people buy more of the same product,

"As we consume increasing amounts of a good or service,we derive diminishing utility from each additional unit consumed" defines _____________________________________.

Because some essential goods are sometimes cheap and some nonessential goods are sometimes very expensive,the _____________________ paradox developed.

A Brief Economic History of the United States

Resource Utilization

The Mixed Economy

Supply and Demand

The Household Consumption Sector

The Business Investment Sector

The Government Sector

The Export-Import Sector

Gross Domestic Product

Economic Fluctuations, unemployment, and Inflation

Classical and Keynesian Economics

Fiscal Policy and the National Debt

Money and Banking

The Federal Reserve and Monetary Policy

A Century of Economic Theory

Economic Growth and Productivity

Demand,supply,and Equilibrium

The Price Elasticities of Demand and Supply

Cost

Profit, loss, and Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Corporate Mergers and Antitrust

Demand in the Factor Market

Labor Unions

Labor Markets and Wage Rates

Rent, interest, and Profit

Income Distribution and Poverty

International Trade

International Finance

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