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WorksheetsMarginal Utility
Total questions: 20
Worksheet time: 13mins
You made a good decision if:
Marginal cost is greater then marginal benefit
Marginal cost is less than marginal benefit
Marginal benefit is greater then marginal cost
Marginal benefit is less then marginal cost
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.
Which of the following best refers to the additional cost a person or firm incur to produce one more unit?
Consumer Benefit
Intersection
Marginal Benefit
Marginal Cost
Total utility is the benefit received from consuming an extra unit of a good.
TRUE
FALSE
The relationship between demand and marginal utility is best explained as ...
the marginal utility a person gets from consuming a good determines their demand for the good.
the total utility a person gets from consuming a good determines their demand for the good.
the marginal utility a person gets from consuming a good determines their market demand for the good.
the total utility a person gets from consuming a good determines their market demand for the good.
The total utility definition states:
The usefulness, benefit or satisfaction a consumer gains from consuming a product.
The satisfaction gained from consuming a quantity of an economic good, measured in utils.
The added consumer satisfaction from consuming a quantity of a good.
The consumer's satisfaction from consuming a quantity of a good.
The definition of the law of diminishing marginal utility
As more units are consumed the marginal utility falls.
As more units are consumed the marginal utility increases.
As price decreases quantity demanded increases.
As price increases consumers are willing to pay more.
Definition of Marginal Utility
the satisfaction from consumption
to total satisfaction from consuming a product
the extra satisfaction from the last unit consumed
the extra consumption from last unit consumed
Consumers will maximize satisfaction when;
Marginal utility is equal to average utility
The price of each good is exactly equal to the price of every other good consumed
The price of each good is exactly equal to the total utility derived from the consumption of every other good
The marginal utility of the last dollar spent on each good is exactly equal to the marginal utility of the last dollar spent on any other good
When offered another helping of stewed chicken at dinner, your dinner guest passes but asks for a second can of coke. We can conclude that your guest’s;
Marginal utility of stewed chicken is decreasing but marginal utility of coke is increasing
Marginal utility of coke is positive but marginal utility if stewed chicken is zero or negative
Total utility of stewed chicken mashed potatoes exceeds her total utility of coke
Total utility of stewed chicken is less than her total utility of coke
Definition of Marginal Utility
the satisfaction from consumption
to total satisfaction from consuming a product
the extra satisfaction from the last unit consumed
the extra consumption from last unit consumed
The definition of the law of diminishing marginal utility
As more units are consumed the marginal utility falls.
As more units are consumed the marginal utility increases.
As price decreases quantity demanded increases.
As price increases consumers are willing to pay more.
Total Utility will be greatest when marginal utility equals
0
1
2
3
A word that can be substituted for utility is
Cost
satisfaction
Income
A "want-satisfying ability" of a good/service is also known as its:
Utility
Total Utility
Marginal Utility
What is "Marginal Benefit" or ("Marginal Utility")?
The cost of any good
The satisfaction that a consumer gets from each subsequent addition
The total cost of a given decision
What is a "util"?
Something that measures the total cost of an activity
A rational decision
an imaginary unit of measurement representing the amount of utility a good or service provides
An imaginary animal
The mascot for the University of Utah
What's the marginal utility of the 2nd good?
210
120
90
-90
What's the marginal utility of the 1st good?
90
120
210
30
