Economic Utility

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.

If Ann gets 100 units of utility from reading a book and 500 units of utility from playing with her cat, What can we determine about Ann?

• She does not enjoy reading books.

• She does not enjoy playing with her cat.

• She prefers reading a book to playing with her cat.

• She prefers playing with her cat to reading a book.

The first four dinner rolls Joan consumes have total utility of 15, 27, 37, and 45 respectively. What is the marginal utility of the 4th dinner roll?

• 124 units of utility

• 45 units of utility

• 11.25 units of utility

• 8 units of 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.

In a given time period, a person consumes more and more of a good and enjoys each additional unit less and is willing to pay less for it, because of:

• diminishing returns

• diminishing marginal product

• diminishing marginal utility

• increasing costs

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

Which of the following is a term in economics that states that more is always better than less

• Utility

• Completeness

• Non-satiation

• Transitivity

• None of these

Economic _____ is the worth of a good or service determined by people's preferences and the trade-offs they choose given their scarce resources or utility. If it is higher than price, people will buy it.

Calculate the utility

• 6

• 6 utils

• 5

• 5 utils

At what point does diminishing Marginal utility set in?

• On unit 1

• On unit 2

• On unit 3

• On unit 4