MICRO_ECON PRACTICE EXAM 3

The term _____________ refers to the additional utility provided by one additional unit of consumption.

• marginal utility

• utility

• added utility

• Giffen utility

Marginal utility can:

• be positive or negative, but not zero

• decrease, but not become negative

• be positive, negative, or zero

• increase positively, but not negatively

Mary says, "You would have to pay me $50 to attend that pro wrestling event." For Mary, the marginal utility of the event is

• zero.

• positive, but declines rapidly.

• negative.

• positive, but less than the ticket price.

Refer to the above data. The value for W is:

• 10.

• 20.

• 25.

• 30.

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CCSS.HSA.REI.B.3

CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.2

CCSS.HSA.SSE.A.1

Refer to the above data. The value for X is:

• 15.

• 5.

• 55.

• 10.

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CCSS.HSA.REI.B.3

CCSS.HSA.CED.A.2

CCSS.HSA.SSE.A.1

CCSS.HSA.CED.A.4

CCSS.HSA.SSE.B.3

Refer to the above data. The value for Y is:

• 25.

• 30.

• 40.

• 45.

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CCSS.HSA.REI.B.3

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

Refer to the data. The value for Z is:

• −5.

• +5.

• −10.

• zero.

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CCSS.HSA.REI.B.3

CCSS.HSA.CED.A.1

If a rational consumer is in equilibrium, which of the following conditions will hold true?

• MUₐ = MUᵦ = MUc = … = MUn.

• The marginal utility of each good purchased will be zero.

• The marginal utility of the last dollar spent on each good purchased will be the same.

• The total utility obtained from each good purchased will be the same.

Suppose that MUₓ/Pₓ exceeds MUᵧ/Pᵧ. To maximize utility the consumer who is spending all her money income should buy:

• less of X only if its price rises.

• more of Y only if its price rises.

• more of Y and less of X.

• more of X and less of Y.

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CCSS.HSA.CED.A.3

Bob budgets $40 a week for entertainment. He splits his time between going to the movies and going to the gym. Each movie costs $8 and each session at the gym also costs $4. The total utility from each of these activities is shown in the table below. Bob’s utility maximizing point is:

• 1 movie; 3 gym workout sessions

• 3 movies; 4 gym workout sessions

• 5 movies; 5 gym workout sessions

• 7 movies; 6 gym workout sessions

Tags

CCSS.HSA.REI.B.3

CCSS.HSA.CED.A.1

CCSS.HSA.CED.A.2

CCSS.HSA.CED.A.3

CCSS.HSA.REI.C.6