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WorksheetsEconomics
Total questions: 40
Worksheet time: 23mins
When marginal utility is decreasing but positive, total utility is:
increasing at a decreasing rate.
decreasing at a decreasing rate
increasing at an increasing rate.
decreasing at an increasing rate.
Which situation is consistent with the law of diminishing marginal utility?
The more pizza Henry eats, the more he enjoys another slice.
The more pizza Henry eats, the less he enjoys another slice
Henry's marginal utility from eating pizza becomes positive after eating three
slices.
Henry's marginal utility from eating pizza reaches a maximum when total utility
is zero.
Which best expresses the law of diminishing marginal utility?
The more consumption of a product, the smaller is the total and marginal utility
from the consumption.
The less consumption of a product, the greater is the total and marginal utility of
the consumption
The more consumption of a product, the smaller is the marginal utility from
consuming an additional unit.
The more consumption of a produc t, the smaller is the total and marginal utility
from the consumption.
How do we calculate marginal utility?
TU: Total Utility
Q: Quantity consumed
∆TU/∆Q
∆MU/∆Q
∆Q/∆TU
∆Q/∆MU
Total utility can be measured as
the sum of all marginal utilities
the sum of all average utilities
the total revenue spent on goods and services
the price of a product
A word that can be substituted for utility is
cost
price
satisfaction
income
after reaching the point of satiety , consumption of additional units of the commodity causes:
TU falls and MU increases
Both TU and MU increase
TU falls and MU falls and becomes negative
TU become negative and MU falls.
Utility :
differs from person to person
differs from time to time
can be easily measured
all of these
The total utility derived by shyam by eating 6 apples is 300 utils. Marginal utility of the 7th apple os 30 utils. the total utility for 7 apples will be ______________ utils.
330
300
270
30
what happens to MU when TU is maximum?
MU is negative
MU is zero
MU is decreasing
MU is increasing
total utility is ___________ at the point of satiety.
minimum
maximum
zero
when we add up utility derived from consumption of all the units of the consumption, we get :
total utility
initial utility
marginal utility
When deciding how much of something to do or buy, people compare the marginal benefit from different levels of the activity to the (a) .
Raquel has to decide between a $100 and a $300 dress for the prom. What is her marginal opportunity cost AND marginal benefit if she buys the more expensive dress? (a)
Chris spent his entire income on two goods. At his current consumption, the marginal utility of Y is 12 and the marginal utility of Z is 4. If the price of Y is N2.00 and the price of Z is N1, then to what should he do to maximize utility?
Which 3 of these are assumptions underlying the Law of Diminishing Marginal utility?
No time has elapsed between consumption of units
A minimum amount of time must have elapsed
A certain minimum must be consumed
It only applies on Wednesdays
It doesn’t apply to addictive goods
Calculate the utility
6
6 utils
5
5 utils
The Law of Diminishing Marginal Utility state that:
As an increasing amount of a good is consumed eventually a point will be reached where the total utility will start to decline
As an increasing amount of a good is consumed eventually a point will be reached where the marginal utility will start to decline
As a decreasing amount of utility is increased eventually an increase will decrease its increase
As you eat more and more of a cake the better life gets
How many more does “marginal” utility refer to?
Smores
Some more
2 more
1 more
In an economic context, Utility means…
Sadness
Satisfaction
Demand
Person B is selling a ...
Good
Service
Person B is a ...
Producer
Consumer
Service
Good
Person A is a ...
Producer
Consumer
Service
Good
If your willingness to pay for a hamburger is N3.00 and the price is N2.00, your consumer surplus is N5.00.
True
False
Consumer surplus decreases when the price in that market increases.
True
False
Consumer surplus is the buyer's willingness to pay minus the seller's cost.
True
False
marginal utility is the satisfacation gained from consuming one more good or service
marginal utility
surplus
shortage
trade-off
The amount of a good or service that consumers are willing and able to buy at a certain price
demand
marginal utility
surplus
shortage
The alternative choice that is given up
opportunity cost
paced
economic decisions
factors of production
