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Unformatted text preview: second, and 5 for the third, what is the total utility of consuming three units? a. 20 units b. 30 units c. 35 units d. 5 units 5.If a consumer’s total utility increases when another unit of a good is consumed, which of the following is true? Marginal utility must be a. negative. b. equal to one. c. positive. d. increasing. 6.Diminishing marginal utility means that as more of a good is consumed, a. the price of the good rises. b. the price of the good falls. c. more income is spent. d. the utility of an additional unit decreases. 1.Answer: d 2.Answer: a 3.Answer: c 4.Answer: c 5.Answer: c 6.Answer: d...
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This note was uploaded on 10/04/2011 for the course ECONOMICS 281 taught by Professor Vg during the Spring '09 term at University of Alberta.
- Spring '09