Quiz 8

Question 1

Diminishing marginal utility

Answer 1

As you get more of a good or activity, the increases in total utility decreases with each additional unit

Question 2

Marginal utility

Answer 2

The utility provided one additional unit of consumption

Question 3

Total utility

Answer 3

The utility provided by all the units consumed

Question 4

Marginal utility per dollar

Answer 4

the additional satisfaction gained from purchasing a good given the price of the product

Question 5

Consumer equilibrium

Answer 5

point on the budget line where the consumer gets the most satisfaction

Question 6

Asymmetric information

Answer 6

a situation where the seller or the buyer has more information than the other regarding the quality of the item for sale

Question 7

Imperfect information

Answer 7

a situation where either the buyer or the seller, or both, are uncertain about the qualities of what they are buying and selling

Question 8

Signaling

Answer 8

when one person does something (other than directly telling them) that gives information to another person about a characteristic of the first person.

Question 9

Signaling theory of education

Answer 9

School is more about demonstrating you can learn than what you do learn.