c07sendout - 1. The ability of a good or service to satisfy...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
The ability of a good or service to satisfy wants is called: A) utility maximization. B) opportunity cost. C) revenue potential. D) utility. 2. The law of diminishing marginal utility states that: A) total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed. B) beyond some point additional units of a product will yield less and less extra satisfaction to a consumer. C) price must be lowered to induce firms to supply more of a product. D) it will take larger and larger amounts of resources beyond some point to produce successive units of a product. 3. Use the following to answer questions 3-5: Refer to the above data. The value for Y is: A) 25. B) 30. C) 40. D) 45. 4. Refer to the above data. The value for X is: A) 15. B) 5. C) 55. D) 10. 5. The above data illustrate the: A) law of comparative advantage. B) utility-maximizing rule. C) law of diminishing marginal utility. D) law of increasing opportunity costs. 6. The first Pepsi yields Craig 18 units of utility and the second yields him an additional 12 units of utility. His total utility from three Pepsis is 38 units of utility. The marginal utility of the third Pepsi is: A) 26 units of utility. B)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

c07sendout - 1. The ability of a good or service to satisfy...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online