Question 1

Marginal utility

Accepted Answer

A) is the usefulness a consumer derives from a certain good or service. 
B) is the utility a consumer derives from a certain good or service. 
C) increases as more of a good or service is consumed. 
D) is the additional utility derived from consuming one more unit of a good or service. 
A) is the usefulness a consumer derives from a certain good or service. 
B) is the utility a consumer derives from a certain good or service. 
C) increases as more of a good or service is consumed. 
D) is the additional utility derived from consuming one more unit of a good or service.

Question 2

Suppose this table shows your demand schedule for Buffalo chicken wings.(a)What is your total utility from four wings? (b)What is your marginal utility from the fifth wing? (c)If the price is $.25,how much will your consumer surplus be?
$$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 1.00 & 1 & & \
\hline \$ .90 & 2 & & \
\hline \$ .80 & 3 & & \
\hline \$ .65 & 4 & & \
\hline \$ .50 & 5 & & \
\hline \$ .40 & 6 & & \
\hline \$ .25 & 7 & & \
\hline \$ .10 & 8 & & \
\hline
\end{array}$$

Accepted Answer

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

Question 3

According to the general utility formula,the marginal utility of product A divided by the ____________ is equal to the marginal utility of product B divided by the ____________.

Accepted Answer

pric e of

Question 4

The economist most closely associated with consumer surplus is

Accepted Answer

A) Karl Marx. 
B) Adam Smith. 
C) Milton Friedman. 
D) John Maynard Keynes. 
E) Alfred Marshall. 
A) Karl Marx. 
B) Adam Smith. 
C) Milton Friedman. 
D) John Maynard Keynes. 
E) Alfred Marshall.

Question 5

If a person consumes excessive amounts of a good or service,to the point that their total utility actually begins declining,then that person's marginal utility of the last unit consumed is _________.

Accepted Answer

A) positive 
B) negative 
C) zero 
D) None of these choices are correct. 
A) positive 
B) negative 
C) zero 
D) None of these choices are correct.

Question 6

Given the information in the table below,find the marginal utility and the total utility.
$$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 30 & 1 & & \
\hline \$ 25 & 2 & & \
\hline \$ 20 & 3 & & \
\hline \$ 15 & 4 & & \
\hline \$ 10 & 5 & & \
\hline
\end{array}$$

Accepted Answer

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

Question 7

If a person wishes to maximize their satisfaction from the consumption of a free product,they should consume until

Accepted Answer

A) marginal utility is maximized. 
B) marginal utility is equal to total utility. 
C) total utility is equal to zero. 
D) marginal utility is equal to zero. 
E) total utility begins to increase. 
A) marginal utility is maximized. 
B) marginal utility is equal to total utility. 
C) total utility is equal to zero. 
D) marginal utility is equal to zero. 
E) total utility begins to increase.

Question 8

If you consume a product up to the point that your marginal utility becomes negative,your total utility will be ____.

Accepted Answer

The answer of If you consume a product up to...

Question 9

Statement I: Utility is measured by a product's usefulness.
Statement II: If you purchased eight ballpoint pens at 75 cents each,you would be enjoying a consumer surplus.

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

Statement I: A person's marginal utility can be positive,zero or negative.
Statement II: As people buy more of the same product,their consumer surplus falls.

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 11

If a bookstore were having a half-price sale,instead of buying three books,you bought six.Because of the sale,your consumer surplus

Accepted Answer

A) declined. 
B) stayed the same. 
C) rose. 
D) doubleD. 
A) declined. 
B) stayed the same. 
C) rose. 
D) doubleD.

Question 12

Statement I: People who bought bottled water for $5 during the Great Blackout of 2003 were ripped off.
Statement II: According to utility theory,no buyer was ever ripped off.

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 13

If the price was $8,her consumer surplus would be

Accepted Answer

A) $27. 
B) $19. 
C) $8. 
D) $3. 
E) None of the choices are correct. 
A) $27. 
B) $19. 
C) $8. 
D) $3. 
E) None of the choices are correct.

Question 14

As the price of a good falls,

Accepted Answer

A) the consumer surplus rises. 
B) the consumer surplus falls. 
C) the consumer surplus may rise or fall. 
D) a change in price will not affect consumer surplus. 
A) the consumer surplus rises. 
B) the consumer surplus falls. 
C) the consumer surplus may rise or fall. 
D) a change in price will not affect consumer surplus.

Question 15

Suppose that the marginal utility of four units purchased is $10 and total utility is $53.If the marginal utility of the fifth unit purchased is $7,how much is the total utility of five units?

Accepted Answer

The answer of Suppose that the marginal utility of four...

Question 16

People who bought candles on the street at midnight during the great Blackout of 2003 ___________ (did/did not)get ripped off.

Accepted Answer

The answer of People who bought candles on the street...

Question 17

If the Santiago family,which pays a charge of one cent a gallon,uses about 1,200 gallons of water a month,what is the most accurate statement we can make about their consumer surplus?

Accepted Answer

A) They definitely enjoy a consumer surplus. 
B) They may or may not enjoy a consumer surplus. 
C) They definitely do not enjoy a consumer surplus. 
A) They definitely enjoy a consumer surplus. 
B) They may or may not enjoy a consumer surplus. 
C) They definitely do not enjoy a consumer surplus.

Question 18

If you bought eight pairs of shoes,the marginal utility of the seventh pair was

Accepted Answer

A) greater than the price. 
B) equal to the price. 
C) less than the price. 
A) greater than the price. 
B) equal to the price. 
C) less than the price.

Question 19

If the price was $6,her consumer surplus would be

Accepted Answer

A) $40. 
B) $30. 
C) $10. 
D) $6. 
E) None of the choices are true. 
A) $40. 
B) $30. 
C) $10. 
D) $6. 
E) None of the choices are true.

Question 20

It is irrational for anyone to buy something whose price exceeded its __________________.

Accepted Answer

The answer of It is irrational for anyone to buy...

Exam 19: Theory of Consumer Behavior

Marginal utility

According to the general utility formula,the marginal utility of product A divided by the ____________ is equal to the marginal utility of product B divided by the ____________.

The economist most closely associated with consumer surplus is

If a person consumes excessive amounts of a good or service,to the point that their total utility actually begins declining,then that person's marginal utility of the last unit consumed is _________.

Given the information in the table below,find the marginal utility and the total utility. Price Quantity Demanded Marginal Utility Total Utility \ 30 1 \ 25 2 \ 20 3 \ 15 4 \ 10 5

If a person wishes to maximize their satisfaction from the consumption of a free product,they should consume until

If you consume a product up to the point that your marginal utility becomes negative,your total utility will be ____.

Statement I: Utility is measured by a product's usefulness. Statement II: If you purchased eight ballpoint pens at 75 cents each,you would be enjoying a consumer surplus.

Statement I: A person's marginal utility can be positive,zero or negative. Statement II: As people buy more of the same product,their consumer surplus falls.

If a bookstore were having a half-price sale,instead of buying three books,you bought six.Because of the sale,your consumer surplus

Statement I: People who bought bottled water for $5 during the Great Blackout of 2003 were ripped off. Statement II: According to utility theory,no buyer was ever ripped off.

If the price was $8,her consumer surplus would be

As the price of a good falls,

Suppose that the marginal utility of four units purchased is $10 and total utility is $53.If the marginal utility of the fifth unit purchased is $7,how much is the total utility of five units?

People who bought candles on the street at midnight during the great Blackout of 2003 ___________ (did/did not)get ripped off.

If the Santiago family,which pays a charge of one cent a gallon,uses about 1,200 gallons of water a month,what is the most accurate statement we can make about their consumer surplus?

If you bought eight pairs of shoes,the marginal utility of the seventh pair was

If the price was $6,her consumer surplus would be

It is irrational for anyone to buy something whose price exceeded its __________________.

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

According to the general utility formula,the marginal utility of product A divided by the is equal to the marginal utility of product B divided by the .