More Chapter 9 Questions – Flashcards

If, as a person consumers more and more of a good, each additional unit adds less satisfaction than the previous unit consumed, we are seeing the workings of a. the law of demand b. the law of supply c. the law of increasing marginal opportunity cost d. the law of diminishing marginal utility

Marginal Utility can be a. negative b. zero c. positive d. positive, negative or zero

If, when you consume another piece of candy, your marginal utility is zero, then a. you want more candy b. you have maximized your total utility from consuming candy c. you have not yet reached the point of diminishing marginal utility d. you should consume less candy

If your total satisfaction increases when you consume another unit, your marginal utility must be a. increasing b. decreasing c. negative d. positive

An item has utility for a consumer if it a. is scarce b. has a high price c. is something everyone else wants d. generates enjoyment of satisfaction

Consumers maximize total utility within their budget constraint by a. buying the cheapest goods they can find b. buying whatever they like the best c. buying the goods with the largest marginal utility per dollar spent d. spending the same dollar amount for each good

In order to derive an individuals demand curve for salmon, we would observe what happens to the utility-maximizing bundle when we change a. income and hold everything else constant b. tastes and preferences and hold everything else constant c. the price of the product and hold everything else constant d. the price of a close substitute and hold everything else constant

Consider a good whose consumption takes place publicly. Your decision to buy that good depends a. both on the characteristics of the product and on how many other people are buying the good b. only on the characteristic c. only on how many other people buy the food d. only on the price of the good