Accounting: Costs and Learning Objective
econonmMicroeconomics Review Quiz Test 2
1. When is marginal utility equal to zero?
A. When TU is zero.
B. When MU is at its maximum.
C. When TU is at its maximum.
D. When MU is at its minimum. The following table shows Mia 's $ marginal utility for litres of soya milk:
2. Refer to the above table to answer this question. Suppose that Mia has a budget of $7 and the price of a litre of soya milk is $1, what is the maximum quantity that Mia might purchase?
A. 0.
B. 4 litres.
C. 5 litres.
D. 6 litres.
E. Cannot be determined. 3. What is the correct formula for MCS (marginal consumer surplus)?
A. $MU-price.
B. Price-$MU.
C. $TU-price.
D. TU/price.
E. TU/quantity. 4. What is the term for the difference between the consumer 's evaluation of a product and the price which is paid for it?
A. Price discrimination.
B. Price elasticity of demand.
C. Consumer indifference.
D. Consumer surplus.
5. Refer to Table 5.13 to answer this question. With the consumption of what quantity is marginal utility equal to zero.
A. 1.
B. 5.
C. 7.
D. 8. 6. You have just spent two hours studying microeconomics and this has made you very hungry. You have $10 to spend on a snack and decide to go to Taco Bell. Putting your newly acquired economics knowledge to use, you have developed the following table to assist with your purchase decision:
(a) Fill in the missing values in the table above.
(b) If you bought 6 tacos and 2 burritos are you maximizing your utility? Explain.
Below are some financial data for the Do Drop In convenience store.
The owners have put $40,000 into the business and they worked a total of 80 hours during the week. Savings accounts are currently paying 5.2% interest and the going wage rate is $8 per hour. 7. Refer to the information above to answer this question. What is the week 's economic profit for the Do Drop In?
A. -$320.
B. -$40.
C. $280.
D. $320.
E.
1. When is marginal utility equal to zero?
A. When TU is zero.
B. When MU is at its maximum.
C. When TU is at its maximum.
D. When MU is at its minimum. The following table shows Mia 's $ marginal utility for litres of soya milk:
2. Refer to the above table to answer this question. Suppose that Mia has a budget of $7 and the price of a litre of soya milk is $1, what is the maximum quantity that Mia might purchase?
A. 0.
B. 4 litres.
C. 5 litres.
D. 6 litres.
E. Cannot be determined. 3. What is the correct formula for MCS (marginal consumer surplus)?
A. $MU-price.
B. Price-$MU.
C. $TU-price.
D. TU/price.
E. TU/quantity. 4. What is the term for the difference between the consumer 's evaluation of a product and the price which is paid for it?
A. Price discrimination.
B. Price elasticity of demand.
C. Consumer indifference.
D. Consumer surplus.
5. Refer to Table 5.13 to answer this question. With the consumption of what quantity is marginal utility equal to zero.
A. 1.
B. 5.
C. 7.
D. 8. 6. You have just spent two hours studying microeconomics and this has made you very hungry. You have $10 to spend on a snack and decide to go to Taco Bell. Putting your newly acquired economics knowledge to use, you have developed the following table to assist with your purchase decision:
(a) Fill in the missing values in the table above.
(b) If you bought 6 tacos and 2 burritos are you maximizing your utility? Explain.
Below are some financial data for the Do Drop In convenience store.
The owners have put $40,000 into the business and they worked a total of 80 hours during the week. Savings accounts are currently paying 5.2% interest and the going wage rate is $8 per hour. 7. Refer to the information above to answer this question. What is the week 's economic profit for the Do Drop In?
A. -$320.
B. -$40.
C. $280.
D. $320.
E.