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If the total utility Jack receives from 10 gallons of gasoline is 16, and the total utili

 If the total utility Jack receives from 10 gallons of gasoline is 16, and the total utility Jack
                            receives from 11 gallons of gasoline is 20, the marginal utility of the 11th gallon of
                            gasoline is

a.1

b.4

c.7

d.20

e.21

32.              If Justin is willing to pay as much as $100 for a ticket to see the Rolling Stones, but is
                            able to buy a ticket for $55, then he has a(n)

a.consumer surplus of $45

b.consumer deficit of $45

c.marginal utility of $45

d.marginal utility of $55

e.total utility of $155

33.              If Jenna buys a CD at a price of $10, she gets a consumer surplus of $20. This means she

a.does not have enough money to buy the CD

b.will not buy the CD since marginal utility is not high enough

c.was willing to pay as much as $30 for the CD

d.was willing to pay as much as $20 for the CD

e.will have $30 left over after she buys the CD

34.              Walter is just learning how to ski. He states that every time he goes skiing, he has more
                            fun than the last time. This means his marginal utility of skiing is

a.increasing

b.constant

c.decreasing

d.zero

e.negative

35.              The law of demand (downward-sloping demand curve)is based on the idea of

a.maximum total utility

b.minimum marginal utility

c.total utility divided by quantity of the good consumed

d.law of diminishing marginal utility

e.consumers minimize total utility

36.              The MU/P equalization principle means consumers will spend their income (budget) so
                            that the MU/P ratio of the goods consumed is

a.zero for each good

b.higher for goods the consumer wants the most (highest marginal utility)

c.maximized for the goods the consumer wants the most (highest marginal utility)

d.higher than TU/P

e.the same for each good

37.              Greg spends his entire budget on two goods: he plays video games at the mall arcade and
                            he buys pizza. He discovers that his MU/P of video games is lower than his MU/P of
                            pizza. From this, we know that he would be

a.happier eating less pizza and playing fewer video games

b.happier eating less pizza and playing more video games

c.happier eating more pizza and playing fewer video games

d.indifferent to which selection he makes

e.less happy if he made any change because he has obviously bought the quantities
that maximize his total utility

38.              If the marginal utility of Jordyn’s 100th dollar of income is 40 utils and the marginal
                            utility of Joshua’s 10th dollar is 135 utils, we know

a.money means more to Jordyn than to Joshua

b.money means more to Joshua than to Jordyn

c.Jordyn has more income than Joshua

d.Joshua has more income than Jordyn

e.nothing, since we can’t make interpersonal utility comparisons

39.              Suppose I buy 3 cups of coffee at the price of $1 each. I would have been willing to pay
                            $3 for that marvelous first cup, pay even $2 for the second cup, and $1—the market price
                            —for the third cup. My consumer surplus is

a.$6

b.$5

c.$3

d.$2

e.$1

40.              Carla spends all her income on two goods: apples and bananas. The price of an apple is
                            $2 and the price of a banana is $1. If the marginal utility of an apple to Carla is 4 and the
                            marginal utility of a banana is 3, she should consume

a.more apples and fewer bananas to maximize total utility

b.more bananas and fewer apples to maximize total utility

c.more apples and more bananas to maximize total utility

d.fewer apples and fewer bananas to maximize total utility

e.exactly what she is consuming because she always makes the most rational choice
each time she spends a dollar.

 

 

Dec 09 2019 Read more Less More

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