Order the answer to: Multiple Choice Questions 1. The law of diminishing marginal uti

Academic Writing business-economics Order the answer to: Multiple Choice Questions 1. The law of diminishing marginal uti

business-economics

Order the answer to: Multiple Choice Questions 1. The law of diminishing marginal uti

Question Multiple Choice Questions 1. The law of diminishing marginal utility implies that the more of a commodity you consume, the a. More you value additional units of output. b. Less you value additional units of output. c. Happier you are. d. Higher the price that is paid for the commodity. 2. When a consumer spends her income on goods and services in such a way that her utility is maximized, she reaches a. Monetary equilibrium. b. Market equilibrium. c. Consumer equilibrium. d. Marginal equilibrium. 3. Hamburgers cost $2 and hot dogs cost $1, and Juan is in consumer equilibrium. What must be true about the marginal utility of the last hamburger Juan consumes? a. The marginal utility of the last hamburger consumed must be less than that of the last hot dog. b. The marginal utility of the last hamburger consumed must be equal to that of the last hot dog. c. The marginal utility of the last hamburger consumed must be greater than that of the last hot dog. d. The marginal utility of the last hamburger consumed must be equal to zero. 4. Melissa spent the week at an amusement park and used all of her money on rides and popcorn. Both rides and bags of popcorn are priced at $1 each. Melissa realizes that the last bag of popcorn she consumed increased her utility by 40 utils, while the marginal utility of her last ride was only 20 utils. What should Melissa have done differently to increase her satisfaction? a. Reduced the number of bags of popcorn she consumed and increased the number of rides b. Increased the number of bags of popcorn she consumed and reduced the number of rides c. Decreased both the number of bags of popcorn and rides consumed d. Increased both the number of bags of popcorn and rides consumed e. Nothing, as her utility was maximized 5. The fact that a gallon of gasoline commands a higher market price than a gallon of water indicates that a. Gasoline is a scarce good but water is not. b. The total utility of gasoline exceeds the total utility of water. c. The marginal utility of a gallon of gasoline is greater than the marginal utility of a gallon of water. d. The average utility of a gallon of gasoline is greater than the average utility of a gallon of water. 6. The total utility derived from consuming scoops of ice cream can be found by a. Multiplying the marginal utility of the last scoop consumed by the number of scoops consumed. b. Multiplying the marginal utility of the last scoop consumed by the price of a scoop of ice cream. c. Dividing the marginal utility of the last scoop consumed by its price. d. Summing the marginal utilities of each scoop consumed. e. Multiplying together the marginal utilities of each scoop of ice cream consumed. 7. In consumer equilibrium a. The marginal utility from consumption is the same across all goods. b. Individuals consume so as to maximize their total satisfaction, given limited income. c. The ratio of the marginal utility of each good divided by its price is equal across all goods consumed. d. All of the above are true. e. All of the above are generally true except a.
Subject business-economics
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