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Economics - Chapter 19 > Economics Chapter 19 > Flashcards

Economics Chapter 19 Flashcards

1
Q

EZ test online - Doug Fletchter

As long as total utility is increasing, we know that marginal utility is

  • positive
  • decreasing
  • increasing
  • negative
A

Positive

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2
Q

EZ test online - Doug Fletchter

As you buy more and more of an item, your total utility __________________and your maginal utility _________________.

  • rises;rises
  • falls; falls
  • rises, falls
  • falls, rises
A

Rises, falls

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3
Q

EZ test online - Doug Fletchter

Which statement is true?

  • Total utility is maximized when marginal utility is zero
  • The utility of a Big Mac is greater than the utility of a Whopper
  • As one consumes more and more of a service, one’s marginal utility rises
  • None of these is true
A

Total utility is maximized when marginal utility is zero.

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4
Q

EZ test online - Doug Fletchter

A person would be maximizing her total utility when:

  • she had a consumer surplus
  • her marginal utility was zero
  • her marginal utility was equal to her total utility
  • she had no consumer surplus
A

her marginal utility was zero.

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5
Q

EZ test online - Doug Fletchter

As you consume more and more of a service,

  • your consumer surplus is definitely increasing
  • your consumer surplus is probably constant
  • your consumer surplus remains constant
  • your consumer surplus is probably decreasing
  • your consumer surplus is definitely decreasing
A

Your consumer surplus is definitely increasing

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6
Q

EZ test online - Doug Fletchter

As a person buys increasing amounts of a good, her marginal utility _________________ and her consumer surplus ______________________

  • decreases, increases
  • decreases, decreases
  • increases, increases
  • increases, decreases
A

decreases, increases

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7
Q

EZ test online - Doug Fletchter

Mr. Fefferberg had determined that the marginal utility of the last dollar he spent on cowboy boots is greater than the marginal utility of the last dollar that he spent on Nikes. Since he is a rational fellow, he will

  • buy equal quantities of Nikes and cowboy boots
  • buy more cowboy boots and less Nikes
  • buy more Nikes and few cowboy boots
  • give up cowboy boots entirely
  • give up Nikes entirely
    *
A

Buy more cowboy boots and few Nikes

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8
Q

EZ test online - Doug Fletchter

Melissa says will will have to be paid in order to even try Jason’s cooking, so her marginal utility for Jason’s cooking is:

  • constant
  • increasing
  • positivve
  • negative
A

Negative

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9
Q

EZ test online - Doug Fletchter

If total utility is decreasing than,

  • marginal utility is zero
  • marginal utility is decreasing but still greater than zero
  • marginal utility is equal to one
  • marginal utility is increasing
  • marginal utility is less than zero
A

marginal utility is less than zero

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10
Q

EZ test online - Doug Fletchter

If marginal utility is declining but still greater than zero, than total utility is:

  • unrelated to the changes in marginal utility
  • declining as well
  • increasing
  • declining for a while but increasing as it approaches zero
  • declining for a while but increasing as it approaches zero
  • styaing the same
A

Increasing

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11
Q

EZ test online - Doug Fletchter

A person who wishes to maximize his or her satisfaction from the consumption of a product should consume until:

  • marginal utility is maximized
  • marginal utility is equal to total utility
  • total utility is equal to zero
  • marginal utility is equal to zero
  • total utility begins to increase
A

Marginal utility is equal to zero

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12
Q

EZ test online - Doug Fletchter

According to the genreral utility formula, the marginal utility of a good divided by the price of that good is:

  • less than negative one
  • equal to one
  • greater than one
  • equal to zero
A

Equal to one

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13
Q

EZ test online - Doug Fletchter

Statement I: If a restaurant served free steaks, people would consume more and more until their _______________ fell to zero

  • a marginal utility
  • total utility
  • consumer surplus
  • None of the choices are correct
A

Marginal utility

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14
Q

EZ test online - Doug Fletchter

If water became very scarce and diamonds became very plentiful:

  • the marginal utility of diamonds and water would rise
  • the marginal utility of both water and diamonds would both fall
  • the marginal utility of diamonds would rise and the marginal utility of water would fall
  • the marginal utility of water would rise and the marginal utility of diamonds would fall
A

The marginal utility of water would rise and the marginal utility of diamonds would fall

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15
Q

EZ test online - Doug Fletchter

We will keep buying blank audio cassettes until the marginal utility of a cassette

  • rises to the price of a cassette
  • falls to the price of a cassette
  • is greater than the price of a cassette
  • is less than the price of a cassette
A

falls to the price of a cassette

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16
Q

EZ test online - Doug Fletchter

The water-diamond paradox is resolved once we realize that the marginal utility of the last gallon of water consumed is very ______________ and the marginal utility of the last diamond caret purchased is very ______________

  • low; low
  • high; high
  • high; low
  • low; high
A

low;high

17
Q

EZ test online - Doug Fletchter

if you were in the middle of the desert, came upon a lemonade stand and paid $5 for a glass of lemonade:

  • you would defiinitely be overpaying
  • you would have gotten at least $5 of utility from the lemonade
  • there is no way to determine whether or not you overpaid
A

You would have gotten at least $5.00 utility from the lemonade

18
Q

EZ test online - Doug Fletchter

Kelly eats five slices of pizza on a Friday ngiht but admits each slices of pizza doesn’t taste as good as the previous one. This suggests that for Kelly:

  • the marginal utility of a slice of pizza is negative
  • the total utility of slices of pizza is increasing by larger and larger increments
  • the total utility of slices of pizza is declining
  • the marginal utility of a slice of pizza is positive but decreasing
A

The marginal utility of a slice of pizza is positive but decreasing

19
Q

EZ test online - Doug Fletchter

We are maximizing our utility when the _____________ of each good and service we we purchased is equal to:

  • total utility ; its’ price
  • marginal utility; its price
  • marginal utility; one
  • total utility; one
A

marginal utility ; its price

20
Q

EZ test online - Doug Fletchter

If your marginal utility from your last sesson with your personal trainer is equal to the price she charged you, then:

  • you have had exactly the right number of sessons
  • you have had too many sessions
  • you have not had enough sessions
  • there is no way to determine whether you have had enough sessions
A

you have had exactly the right number of sessions

21
Q

EZ test online - Doug Fletchter

As you go on more and more ski weekends, your total utility ________________ and your marginal utility _________________.

  • declines; declines
  • declines; rises
  • rises; declines
  • rises; rises
A

rises; declines

22
Q

EZ test online - Doug Fletchter

Alfred Marshall dicovered the concept of

  • utility
  • consumer surplus
  • diminishing marginal utility
  • the diamond water paradox
A

consumer surplus

23
Q

EZ test online - Doug Fletchter

When marginal utility is zero, total utility is:

  • zero
  • maximized
  • falling
  • negative
A

maximized

24
Q

EZ test online - Doug Fletchter

When total utility is increasing, marginal utility is ____________________________

  • positive
  • negative
  • zero
  • none of these choices are correct
A

Positive

25
Q

EZ test online - Doug Fletchter

The economist most closely associated with consumer surplus is:

  • Karl Marx
  • Adam Smith
  • Milton Friedman
  • Alfred Marshall
A

Alfred Marshall

Economics - Chapter 19 (1 decks)

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