economics exam 2

Utility refers to the

• satisfaction obtained from a good or service.

• additional satisfaction obtained from one more unit of a good or service

• willingness to buy specific quantities of a good or service at a particular price.

• decrease in satisfaction as more of a good or service is consumed.

Marginal utility is

• the sum of the total utility of consuming a certain amount of a good.

• the change in total utility obtained by consuming one additional unit of a good or
  service.

• the diminishing nature of total utility.

• always negative or zero.

Total utility is

• the additional utility from consuming one more unit of a good.

• the sum of the marginal utilities from the consumption of a good.

• a function that always falls as a buyer enjoys more units of a good.

• how much utility a seller gets from producing a good

The additional pleasure or satisfaction from a good will decline as more of it is consumed in
a given period. This is the definition of the

• A) law of demand.
  

• 
  B) law of diminishing marginal utility.
  

• 
  C) law of diminishing total utility.
  

• D) total revenue rule

Josh is eating pizza at his favorite Italian restaurant. The marginal utility Josh
enjoys from the fourth slice of pizza is

• A) 20 utils.

• 
  B) 54 utils.
  

• 
  C) 5 utils.
  

• 
  D) 0 utils.

(Table 19.1) Josh is eating pizza at his favorite Italian restaurant. For Josh, diminishing
marginal utility begins

• A) after the first slice of pizza.
  

• 
  B) after the third slice of pizza.
  

• 
  C) after the second slice of pizza.
  

• 
  D) to increase after the first slice of pizza.

(Figure 19.1) The total consumer surplus in this market is equal to

• A) $950.
  

• 
  B) $900.
  

• 
  C) $850.
  

• 
  D) $800.

Evaluating a supply and a demand curve independently, if the equilibrium price rises,

• A) the consumer surplus will fall.
  

• 
  B) the producer surplus will fall.
  

• 
  C) the consumer surplus will increase.
  

• 
  D) the producer surplus will increase

Price discrimination is ________ in the United States and ________ practiced.

• A) legal; rarely
  

• 
  B) illegal; widely
  

• 
  C) legal; often
  

• 
  D) illegal; rarely

Car dealers can easily price discriminate because

• A) buyers do not know the car's price.
  

• 
  B) sellers negotiate a separate price agreement with each individual buyer.
  

• 
  C) each seller knows the price but the buyer does not.
  

• 
  D) buyers get together to collectively negotiate a price.