Quiz #3 - Name:_ Principles of Microeconomics ECON 101...

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Name:________________________ Principles of Microeconomics ECON 101 7-19-06 Quiz #3 1. Marginal utility is a. always greater than total utility. b. utility that is not as good as normal utility. c. not related to total utility. d. the extra utility derived from consuming one additional unit of a good or service. e. always positive. 2. Suppose that when the price of corndogs goes up, we find Jimmy consuming more tacos and less corndogs. This is a result of a. the income effect of a price change. b. government conspiracy. c. the substitution effect of a price change. d. utility/price deflation. e. Jimmy realizing that corndogs are bad for you. 3. In the diagram to the right, consumer surplus is a. $480 b. $960 c. $320 d. $30 e. $1920 4. In order to maximize profits, a firm will a. sell all they can. b. produce where cost is minimized. c. produce where production is maximized. d. implement the strategies of Enron. e.
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This note was uploaded on 04/13/2008 for the course ECON 101 taught by Professor Brentkreider during the Summer '07 term at Iowa State.

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Quiz #3 - Name:_ Principles of Microeconomics ECON 101...

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