Multiple Choices-second midterm

# Multiple Choices-second midterm - Multiple Choices-Second...

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Multiple Choices-Second Midterm ( Answers are at the end of the file.) 1. The total satisfaction one gets from one's consumption of a product is called: a. marginal utility. b. a unit of utility. c. total utility. d. minimum utility. 2. To calculate the total utility of consuming N products: a. add the additional satisfaction of consuming each product up to N and multiply by its price. b. add the total satisfactions of consuming each product up to N. c. multiply the additional satisfaction from consuming the Nth product by its price. d. multiply total satisfaction from consuming N products by N. 3. If Jack willingly consumes another slice of pizza, you can be sure that his marginal utility is: a. rising. b. falling. c. positive. d. negative. 4. According to the law of diminishing marginal utility: a. total utility is always falling. b. total utility is always rising. c. after some point, total utility falls. d. after some point, the rate of change in total utility declines. 5. Accounting profit is equal to: a. total revenue minus implicit costs. b. total revenue minus explicit measurable costs. c. total revenue minus implicit and explicit costs. d. implicit and explicit revenues minus implicit costs. 6. A business owner makes 50 items by hand in 6 hours. She could have earned \$10 an hour working for someone else. If each item sells for \$5 and the explicit costs total \$14, accounting profit for 50 items is: a. \$64. b. \$176. c. \$236.

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## This note was uploaded on 11/04/2009 for the course ECON 201 taught by Professor Williams during the Fall '08 term at UVA.

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Multiple Choices-second midterm - Multiple Choices-Second...

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