Marginal Utility

What best reflects the goal of a consumer?

• To acquire the largest possible quantity of goods.

• To acquire the largest possible variety of goods.

• To maximize utility.

• To save money.

What's the marginal utility of the 2nd good?

• 210

• 120

• 90

• -90

What's the marginal utility of the 7th good?

• -30

• -240

• 247

• 30

I get less enjoyment out of each additional can of soda I drink. What does this represent?

• Law of Diminishing Utility/Return

• Capital

• Margin

• Scarcity

What is Marginal Benefit/Utility?

• The cost of any good

• The satisfaction that a consumer gets from each subsequent addition

• The total cost of a given decision

If Ann gets 100 units of utility from reading a book and 500 units of utility from playing with her cat, we know that Ann

• does not enjoy reading books

• does not enjoy playing with her cat

• prefers reading a book to playing with her cat

• prefers playing with her cat to reading a book

What's the marginal utility of the 1st good?

• 90

• 120

• 210

• 30

What is the concept of marginal utility in economics?

• The additional satisfaction gained from consuming one more unit of a good

• The total satisfaction gained from consuming a good

• The cost of producing one more unit of a good

• The total cost of consuming a good

Which of the following best describes the Law of Diminishing Marginal Utility?

• As more units of a good are consumed, the additional satisfaction from each unit increases

• As more units of a good are consumed, the additional satisfaction from each unit decreases

• The total satisfaction from consuming a good remains constant

• The cost of consuming additional units of a good decreases

How does marginal utility affect consumer choice?

• Consumers will continue to consume a good until marginal utility is zero

• Consumers will consume a good until the total utility is maximized

• Consumers will consume a good until the marginal utility equals the price

• Consumers will consume a good until the marginal utility is negative