Homework 2 Anwers choic

# Homework 2 Anwers choic - Homework 2 Multiple Choice...

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Homework 2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. A util represents a unit of measurement for the: a. dollars a consumer spends on a good. b. profit a firm makes from producing a good. c. way a consumer will respond to a change in price. d. happiness a person obtains from consuming a good. e. way a producer will respond to a change in price. ____ 2. The term utility refers to the: a. usefulness of a good in relation to its scarcity. b. necessity of a good. c. price of a good. d. number of goods a consumer has. e. pleasure or satisfaction a consumer receives upon consuming a good. ____ 3. The marginal utilities associated with the first 4 units of consumption of good Y are 10, 12, 9, and 7, respectively. What is the total utility associated with the third unit? a. 3. b. 9. c. 25. d. 31. e. The amount cannot be determined from the marginal utilities. ____ 4. Consumers tend to maximize: a. marginal utility. b. marginal utility per dollar. c. total utility. d. money holdings. e. consumer surplus. ____ 5. Utility theory assumes that marginal utility: a. increases as an individual consumes more of a product. b. decreases as an individual consumes more of a product. c. is zero as long as the individual derives utility from the product. d. is constant as long as the individual derives utility from the product. e. is constant as long as the individual derives satisfaction from the product. ____ 6. Marginal utility is measured by: a. a ray from the origin to a point on the total utility curve. b. the change in total utility for a 1-unit change in the quantity consumed. c. total utility divided by total quantity consumed. d. the first utility minus the last utility. e.

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Homework 2 Anwers choic - Homework 2 Multiple Choice...

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