B. opportunity cost.
C. revenue potential.
2. Refer to the above data. The value for Y is:
3. Refer to the above data. The value for X is:
4. Refer to the above data. The value for W is:
5. Refer to the above data. The value for Z is:
6. A product has utility if it:
A. takes more and more resources to produce successive units of it. B. violates the law of demand.
C. satisfies consumer wants.
D. is useful.
7. The law of diminishing marginal utility states that:
A. total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed. B. beyond some point additional units of a product will yield less and less extra satisfaction to a consumer. C. price must be lowered to induce firms to supply more of a product. D. it will take larger and larger amounts of resources beyond some point to produce successive units of a product. 8. The first Pepsi yields Craig 18 units of utility and the second yields him an additional 12 units of utility. His total utility from three Pepsis is 38 units of utility. The marginal utility of the third Pepsi is: A. 26 units of utility.
B. 6 units of utility.
C. 8 units of utility.
D. 38 units of utility.
9. Marginal utility is the:
A. sensitivity of consumer purchases of a good to changes in the price of that good. B. change in total utility obtained by consuming one more unit of a good. C. change in total utility obtained by consuming another unit of a good divided by the change in the price of that good. D. total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed. 10. Marginal utility:
A. is equal to total utility divided by the number of units consumed. B. is equal to total utility if the demand curve is linear. C. increases as more of a product is consumed.
D. diminishes as more of a product is consumed.
11. Which of the following is correct?
A. There is no firm mathematical relationship between marginal utility and total utility. B. Total utility is equal to the change in marginal utility from consuming an additional unit of a product. C. If marginal utility is diminishing and is a positive amount, total utility will increase. D. If marginal utility is diminishing, total utility must also be diminishing. 12. The law of diminishing marginal utility explains why: A. supply curves slope upward.
B. demand curves slope downward.
C. drug addicts can never get enough.
D. people will only consume their favorite goods and not try new things.
13. While eating at Alex's "Pizza by the Slice" restaurant, Kara experiences diminishing marginal utility. She gained 10 units of satisfaction from her first slice of pizza consumed, and would only receive 5 units of satisfaction from consuming a second slice. Based on this information we can conclude that: A. Alex may have to lower the price to convince Kara to buy a second slice. B. Kara will not eat a second slice, even if it is given to her at no charge. C. Kara will definitely want to buy a second slice of pizza. D. even if Kara buys a second slice, she will not buy a third slice. 14. The alternative combinations of two goods which a consumer can purchase with a given money income is shown by: A. a production possibilities curve.
B. a demand curve.
C. consumer expenditure line.
D. a budget line.
15. The budget line shows:
A. the amount of product A that a consumer is willing to give up to obtain one more unit of product B. B. all possible combinations of two goods that can be purchased, given money income and the prices of the goods. C. the minimum amount of two goods that a consumer can purchase with a given money income. D. all possible combinations of two goods...