492 493 494 495 496 497 The relationship between an individual s consumption bundle and utility is called a demand function Incorrect production function Incorrect consumption function Incorrect utility function True Answer Correct To say that you can t have too much of a good thing means that for any good that you enjoy for example pizza higher consumption will always lead to higher utility True Answer Correct higher consumption will cause utility to decrease at an increasing rate Incorrect higher consumption will increase utility but only up to a point after that utility will start to decrease Incorrect it is valid to measure utility in utils Incorrect Economists identify the satisfaction a person derives from the consumption of goods and services as happiness Incorrect usefulness Incorrect utility True Answer Correct pleasure Incorrect The utility of a good is determined by how much a particular consumer obtains from it satisfaction True Answer Correct usefulness Incorrect cost Incorrect need fulfillment Incorrect Economists describe the satisfaction consumers receive from consuming goods and services as utility True Answer Correct income effects Incorrect budget constraints Incorrect substitution effects Incorrect Utility is the difference between a firm s total revenue and its total economic cost Incorrect good not adequately provided by a free market and usually provided by the government Incorrect satisfaction consumers derive from their consumption of goods and services True Answer Correct lowest price that buyers are willing to pay for a given quantity of a good Incorrect For economists the satisfaction an individual derives from the consumption of goods and services is best described as happiness Incorrect usefulness Incorrect utility True Answer Correct opportunity cost Incorrect 499 The ability of pumpkin pie to satisfy a want is referred to as its utility True Answer Correct usefulness Incorrect worthiness Incorrect necessity Incorrect Utility is most closely related to usefulness Incorrect satisfaction True Answer Correct requirement Incorrect necessity Incorrect How much Susan obtains from eating green beans is a measure of the utility of green beans efficiency Incorrect usefulness Incorrect cost Incorrect satisfaction True Answer Correct Which of the following goods is most likely to display increasing marginal utility over some range chicken during the 1920s when it was considered a luxury 498 500 501 502 503 504 505 506 good Incorrect paint because you need it in an amount sufficient to paint at least one entire room True Answer Correct lobsters which are so expensive that you must eat two to get your money s worth Incorrect peanut butter and jelly sandwiches Incorrect The marginal utility of coffee consumption for Steve is the change in generated by consuming an additional cup of coffee total utility True Answer Correct total consumption Incorrect total demand Incorrect price Incorrect Xavier notices that the marginal utility of working with a tutor seems to fall with each hour the tutor helps him study If Xavier keeps the tutor until his grade actually begins to fall his marginal utility will be negative True Answer Correct positive but rising more slowly Incorrect zero Incorrect immeasurable Incorrect On a deserted island high speed Internet service would have a marginal utility than in New York City while quiet evenings in New York City would carry a marginal utility than on a deserted island lower higher Incorrect higher lower Incorrect lower lower Incorrect higher higher True Answer Correct Suppose bad weather and pollution dramatically reduce the supply of crawfish in Louisiana next year This would also lead to in the marginal utility of crawfish consumption an increase True Answer Correct a decrease Incorrect no change Incorrect substitution and income effects Incorrect 507 508 509 510 511 An individual gets 5 units of utility from one slice of pizza and 9 units of utility from two slices of pizza The principle of diminishing marginal utility implies that the total utility from three slices of pizza will be exactly 12 units of utility Incorrect less than 13 units of utility True Answer Correct less than 9 units of utility Incorrect more than 14 units of utility Incorrect The principle of diminishing marginal utility states that as an individual consumes more of a good the total utility obtained will eventually fall Incorrect the total utility obtained will eventually become negative Incorrect the addition to total utility obtained from the nth unit of the good will be less than that obtained from the n 1 unit of the good True Answer Correct the marginal utility will eventually become negative Incorrect The principle of diminishing marginal utility means that when Sarah eats pizza her satisfaction from the second slice of pizza is probably greater than that from the first Incorrect equal to that from the first Incorrect less than that from the first True Answer Correct not comparable to that from the first Incorrect The amount by which total utility increases when an additional unit of a good is consumed is called utility average Incorrect additional Incorrect maximum Incorrect marginal True Answer Correct The amount by which an additional unit of a good or service increases a consumer s total utility all other things unchanged is marginal utility True Answer Correct maximum utility Incorrect average utility Incorrect 512 513 51 4 51 5 required utility Incorrect Assume that the marginal utilities for the first three units of a good consumed are 200 150 and 125 respectively The total utility for the first unit is 125 Incorrect 150 Incorrect 200 True Answer Correct 350 Incorrect Assume that the marginal utilities for the first three units of a good consumed are 200 150 and 125 respectively The total utility when two units are consumed is 150 Incorrect 200 Incorrect 350 True Answer Correct 475 Incorrect Reference Ref 10 1 Table Utility of Pecan Rolls Look at the table The Utility of Pecan Rolls The marginal utility for the second roll is 35 Incorrect 15 True Answer Correct 10 Incorrect 5 Incorrect Reference Ref 10 1 Table Utility of Pecan Rolls Look at the table The Utility of Pecan Rolls The marginal utility for the fifth roll is 15 Incorrect 10 Incorrect 5 Incorrect 0 True Answer Correct 51 6 51 7 51 8 51 9 Reference Ref 10 1 Table Utility of Pecan Rolls Look at the table The Utility of Pecan Rolls The marginal utility for the sixth roll is 5 True Answer
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