Micro-Economics Ch 10 Questions

Micro-Economics Ch 10 Questions - Name: _ Date: _ 1. The...

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Date: _____________ 1. The relationship between an individual's consumption bundle and his or her utility is called a: A) demand function. B) production function. C) consumption function. D) utility function. 2. The marginal utility of coffee consumption for Steve is the change in ________ generated by consuming an additional unit of coffee. A) total utility B) total consumption C) total demand D) price 3. Xavier notices that the marginal utility of working with a tutor seems to fall with each hour the tutor helps him study. If Xavier keeps the tutor until his grade actually begins to fall, his marginal utility will be: A) negative. B) positive, but rising more slowly. C) zero. D) immeasurable. 4. On a deserted island, high-speed Internet service would have a ________ marginal utility than in New York City, while in New York City, quiet evenings would carry a ________ marginal utility than on a deserted island. A) lower; higher B) higher; lower C) lower; lower D) higher; higher 5. The principle of diminishing marginal utility states that as an individual consumes more of a good: A) the total utility obtained will eventually fall. B) the total utility obtained will eventually become negative. C) the addition to total utility obtained from the n th unit of the good will be less than that obtained from the ( n – 1) unit of the good. D) the marginal utility will eventually become negative. 6. Economists identify the satisfaction a person derives from the consumption of goods and services as: A) happiness. B) usefulness.
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Micro-Economics Ch 10 Questions - Name: _ Date: _ 1. The...

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