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marginal utility alway… Show more Question 1 In cardinal u

Paper help Economics marginal utility alway… Show more Question 1 In cardinal u

Economics

marginal utility alway… Show more Question 1 In cardinal u

marginal utility alway… Show more Question 1 In cardinal utility analysis Question 1 options: marginal utility always increases as more of a good is consumed. the concept of marginal utility exists while in ordinal utility analysis marginal utility does not exist. numbers can be assigned to utility. it is recognized that numbers can not be assigned to utility. Question 2 Refer to the above table. In examining the utility schedules for Michelle and Robert, we can conclude that Question 2 options: they like movies the same. they like the third movie the same. they both received the same satisfaction from watching the fourth movie. Michelle likes movies more than Robert does. Question 3 The price of a hamburger is $1 and the price of a movie is $6. The consumer has purchased 2 hamburgers and 2 movies, and his marginal utility from the second hamburger is 20 and from the second movie is 120. The consumer has an income of $21. This combination of goods Question 3 options: maximizes utility because the marginal utility of the last dollar spent on each good is the same, but it is not an equilibrium because marginal utility is not zero. is not an equilibrium because the marginal utility of the last dollar spent on each good is not the same. maximizes utility and is an equilibrium because the marginal utility of the last dollar spent on each good is the same. is not an equilibrium because the consumer has not spent all of her money. Question 4 The diamond-water paradox is an example that shows that Question 4 options: there are exceptions to the law of diminishing marginal utility. marginal utility rather than total utility determines what people are willing to pay for a good. necessities like water should have a higher price. marginal utility can initially increase and then decrease. Question 5 Basket of goods A is on an indifference curve that lies further from the origin than basket B. From this we know that Question 5 options: all other consumers would also rank B above A. the satisfaction from consuming A is more than the satisfaction from consuming B. the marginal utility from consuming A is more than the marginal utility from consuming B. the prices of the goods in A are more than the prices of the goods in B. Question 6 Refer to the above table. Robert’s utility schedule shows Question 6 options: diminishing marginal utility throughout the entire schedule. initially decreasing marginal utility and then increasing marginal utility. initially increasing marginal utility and then decreasing marginal utility. increasing marginal utility throughout the entire schedule. Question 7 Refer to the above table. If the price of a magazine is $2 and the price of a paperback book is $5 and the consumer has $19, the rational consumer will purchase Question 7 options: 6 magazines and 6 books. 5 magazines and 6 books. 2 magazines and 2 books. 2 magazines and 3 books. Question 8 The total utility of consuming 6 units of a good is 255. The marginal utility of the 6th unit is 45 and the marginal utility of the 5th unit is 60. The total utility of consuming 5 units of the good is Question 8 options: 300. 150. 195. 210. Question 9 A consumer has spent all of this money on hamburgers and movies. The price of a hamburger is $1 and the price of a movie is $6. The marginal utility of the last hamburger is 5 and the marginal utility of the last movie is 24. The consumer has Question 9 options: not maximized utility. He should cut back on movies and buy more hamburgers. not maximized utility. He should cut back on hamburgers and buy more movies. not maximized utility. He should cut back consumption of each good. maximized utility. Question 10 Refer to the above table. The marginal utility of the 5th movie for Michelle is Question 10 options: 60 units of utility. 390 units of utility. 40 units of utility. 50 units of utility. Question 11 Refer to the above table. At what quantity does diminishing marginal utility set in? Question 11 options: After 1. After 2. After 10. After 0. • Show less

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