Question 1

If you received a free month's trial membership in a gym,you would keep going until your marginal utility reached

Accepted Answer

A) a maximum. 
B) zero. 
C) a positive number. 
D) a negative number. 
A) a maximum. 
B) zero. 
C) a positive number. 
D) a negative number.

Question 2

Statement I: The more piano lessons you take,the greater the consumer surplus you enjoy.
Statement II: Utility is measured by how useful a good or service is.

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 3

Which statement is true?

Accepted Answer

A) If you know a person's demand schedule,you can find his total utility,but not his marginal utility. 
B) If a good is free,you will consume more and more of it until your marginal utility is zero. 
C) If a good is free,you will consume more and more of it until your total utility is zero. 
D) If you know a person's demand schedule you can find her marginal utility,but not her total utility. 
A) If you know a person's demand schedule,you can find his total utility,but not his marginal utility. 
B) If a good is free,you will consume more and more of it until your marginal utility is zero. 
C) If a good is free,you will consume more and more of it until your total utility is zero. 
D) If you know a person's demand schedule you can find her marginal utility,but not her total utility.

Question 4

-Given the demand curve in this graph,if price were $3.00,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

Question 5

As a young man,my great-uncle ate 13 banana splits on a Saturday afternoon and never ate another one for the rest of his life.Most likely the utility of his last banana split was

Accepted Answer

A) positive. 
B) zero. 
C) negative. 
D) greater than the utility of his 12th banana split. 
A) positive. 
B) zero. 
C) negative. 
D) greater than the utility of his 12th banana split.

Question 6

When marginal utility is _________,total utility is _________.

Accepted Answer

A) positive;increasing 
B) zero;maximized 
C) negative;decreasing 
D) All of the choices are correct. 
A) positive;increasing 
B) zero;maximized 
C) negative;decreasing 
D) All of the choices are correct.

Question 7

The water-diamond paradox is explained partially by the facts that the marginal utility of water is _____ and the marginal utility of diamonds is ____.

Accepted Answer

The answer of The water-diamond paradox is explained partially by...

Question 8

Which statement is true?

Accepted Answer

A) Total utility is maximized when marginal utility is zero. 
B) The utility of a Big Mac is greater than the utility of a Whopper. 
C) As one consumes more and more of a service,one's marginal utility rises. 
D) None of these are true. 
A) Total utility is maximized when marginal utility is zero. 
B) The utility of a Big Mac is greater than the utility of a Whopper. 
C) As one consumes more and more of a service,one's marginal utility rises. 
D) None of these are true.

Question 9

A product's utility

Accepted Answer

A) is measured by its usefulness. 
B) determines the price charged by the seller. 
C) has no effect on a person's consumption decision. 
D) None of these choices are correct. 
A) is measured by its usefulness. 
B) determines the price charged by the seller. 
C) has no effect on a person's consumption decision. 
D) None of these choices are correct.

Question 10

We are maximizing our utility when the ______ of each good and service we purchase is equal to ______.

Accepted Answer

A) total utility;its price 
B) marginal utility;its price 
C) marginal utility;one 
D) total utility;one 
A) total utility;its price 
B) marginal utility;its price 
C) marginal utility;one 
D) total utility;one

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 was $2.50 each,your total utility would be ______ and your marginal utility would be ______.

Accepted Answer

A) $13.00 and $4.00 
B) $15.00 and $4.00 
C) $13.00 and $2.50 
D) $15.00 and $2.50 
A) $13.00 and $4.00 
B) $15.00 and $4.00 
C) $13.00 and $2.50 
D) $15.00 and $2.50

Question 12

Which statement is true?

Accepted Answer

A) The utility of a satellite dish is greater than the utility of a cell phone. 
B) A $24 ticket to a Detroit Tigers baseball game provides the ticket-holder with more utility than a $75 ticket to see a Detroit Red Wings hockey game. 
C) A half-hour swimming lesson would provide twelve different people with exactly the same utility. 
D) No one would pay for a service that provided him with no utility. 
A) The utility of a satellite dish is greater than the utility of a cell phone. 
B) A $24 ticket to a Detroit Tigers baseball game provides the ticket-holder with more utility than a $75 ticket to see a Detroit Red Wings hockey game. 
C) A half-hour swimming lesson would provide twelve different people with exactly the same utility. 
D) No one would pay for a service that provided him with no utility.

Question 13

The one exception to the rule that you are not getting ripped off if you pay a very high price for a good or service is if there is ___________.

Accepted Answer

The answer of The one exception to the rule that...

Question 14

-Assume the demand curve is line AC.If price is OD,the consumer surplus is bounded by letters

Accepted Answer

A) OABD. 
B) OAC. 
C) DBC. 
D) None of these are true. 
A) OABD. 
B) OAC. 
C) DBC. 
D) None of these are true.

Question 15

If the marginal utility you derived from the last video game you played was 50 cents and the game costs 50 cents to play,

Accepted Answer

A) you have been playing the game too long. 
B) you haven't been playing the game long enough. 
C) you have maximized your total utility. 
D) there is no way to determine whether you have played the game long enough. 
A) you have been playing the game too long. 
B) you haven't been playing the game long enough. 
C) you have maximized your total utility. 
D) there is no way to determine whether you have played the game long enough.

Question 16

Consumer surplus is the difference between what you would have _________________ and what you ____.

Accepted Answer

been willi

Question 17

Statement I: As we consume more and more of a product,our marginal utility declines.
Statement II: A person's marginal utility can never be negative.

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 18

Given the information in the table below,find the marginal utility and the total utility.
$$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 9 & 1 & & \
\hline \$ 8 & 2 & & \
\hline \$ 7 & 3 & & \
\hline \$ 6 & 4 & & \
\hline
\end{array}$$

Accepted Answer

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

Question 19

As long as total utility is increasing,we know that marginal utility is

Accepted Answer

A) positive. 
B) decreasing. 
C) increasing. 
D) negative. 
A) positive. 
B) decreasing. 
C) increasing. 
D) negative.

Question 20

If a restaurant served free steaks,people would consume more and more steaks until their ________ fell to zero.

Accepted Answer

A) marginal utility 
B) total utility 
C) consumer surplus 
D) None of the choices are correct. 
A) marginal utility 
B) total utility 
C) consumer surplus 
D) None of the choices are correct.

Exam 19: Theory of Consumer Behavior

If you received a free month's trial membership in a gym,you would keep going until your marginal utility reached

Statement I: The more piano lessons you take,the greater the consumer surplus you enjoy. Statement II: Utility is measured by how useful a good or service is.

Which statement is true?

-Given the demand curve in this graph,if price were $3.00,how much is consumer surplus?

As a young man,my great-uncle ate 13 banana splits on a Saturday afternoon and never ate another one for the rest of his life.Most likely the utility of his last banana split was

When marginal utility is _________,total utility is _________.

The water-diamond paradox is explained partially by the facts that the marginal utility of water is _____ and the marginal utility of diamonds is ____.

Which statement is true?

A product's utility

We are maximizing our utility when the ______ of each good and service we purchase is equal to ______.

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 was $2.50 each,your total utility would be ______ and your marginal utility would be ______.

Which statement is true?

The one exception to the rule that you are not getting ripped off if you pay a very high price for a good or service is if there is ___________.

-Assume the demand curve is line AC.If price is OD,the consumer surplus is bounded by letters

If the marginal utility you derived from the last video game you played was 50 cents and the game costs 50 cents to play,

Consumer surplus is the difference between what you would have _________________ and what you ____.

Statement I: As we consume more and more of a product,our marginal utility declines. Statement II: A person's marginal utility can never be negative.

Given the information in the table below,find the marginal utility and the total utility. Price Quantity Demanded Marginal Utility Total Utility \ 9 1 \ 8 2 \ 7 3 \ 6 4

As long as total utility is increasing,we know that marginal utility is

If a restaurant served free steaks,people would consume more and more steaks until their ________ fell to zero.

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

Filters

When marginal utility is _,total utility is _.

The water-diamond paradox is explained partially by the facts that the marginal utility of water is _ and the marginal utility of diamonds is .

We are maximizing our utility when the of each good and service we purchase is equal to .

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 was $2.50 each,your total utility would be and your marginal utility would be .

Consumer surplus is the difference between what you would have _____________ and what you .