Question 1

We will keep buying digital music downloads from the Internet until the marginal utility of the music downloads

Accepted Answer

A)  rises to the price of the download.
B)  falls to the price of the download.
C)  is greater than the price of the download.
D)  is less than the price of the download.E) A) and B)
F) C) and D)

Question 2

If Rachel bought too many hot dogs, her marginal utility would become negative and her total utility would

Accepted Answer

A)  rise more slowly.
B)  stop rising.
C)  begin to fall.
D)  become negative.E) None of the above
F) B) and C)

Question 3

If your marginal utility from your last session with your personal trainer is equal to the price they charged you, then

Accepted Answer

A)  you have had exactly the right number of sessions.
B)  you have had too many sessions.
C)  you have not had enough sessions.
D)  there is no way to determine whether you have had enough sessions.E) A) and D)
F) C) and D)

Question 4

Jason's cooking is so terrible that Melissa says she will have to be paid in order to even try it. Thus, her marginal utility for Jason's cooking is

Accepted Answer

A)  constant.
B)  increasing.
C)  positive.
D)  negative.E) B) and C)
F) A) and D)

Question 5

The one exception to the rule that you are not getting ripped off if you pay a very high price for a good or service is if there is ___________.

Accepted Answer

The answer of The one exception to the rule that...

Question 6

As people buy more of the same product,

Accepted Answer

A)  their consumer surplus rises.
B)  their consumer surplus falls.
C)  their consumer surplus will fall to zero to maximize their total utility.
D)  the additional purchases do not affect their consumer surplus.E) B) and C)
F) A) and D)

Question 7

If water became very scarce and diamonds became very plentiful

Accepted Answer

A)  the marginal utility of diamonds and water would both rise.
B)  the marginal utility of both water and diamonds would both fall.
C)  the marginal utility of diamonds would rise and the marginal utility of water would fall.
D)  the marginal utility of water would rise and the marginal utility of diamonds would fall.E) None of the above
F) A) and B)

Question 8

A product's utility

Accepted Answer

A)  is measured by its usefulness.
B)  determines the price charged by the seller.
C)  has no effect on a person's consumption decision.
D)  None of these choices are correct.E) B) and D)
F) B) and C) D

Question 9

When marginal utility is zero, total utility

Accepted Answer

A)  is zero.
B)  is maximized.
C)  is falling.
D)  is negative.E) C) and D)
F) B) and D) B

Question 10

Which statement is false?

Accepted Answer

A)  A product's utility to a buyer is measured by how much the buyer is willing to pay for it.
B)  A person would maximize her total utility when she had no consumer surplus.
C)  We will consume a service when its marginal utility is equal to its price.
D)  As the price of a good rises the consumer surplus decreases.E) B) and D)
F) None of the above

Question 11

Use the following table to answer the question : Table 2 :Demand and Utility Schedules for Packs of Star Wars Trading Cards 
-Her marginal utility of her fifth pack of trading cards would be

Accepted Answer

A)  $40.
B)  $34.
C)  $30.
D)  $6.
E)  None of the choices are true.F) A) and D)
G) All of the above

Question 12

Total utility is at a ___________ when marginal utility is zero.

Accepted Answer

The answer of Total utility is at a ___________ when...

Question 13

Karen O'Brien has the demand schedule for grapefruit shown in the table below.
A) Her total utility for four grapefruits would be ____.
B) Her marginal utility from the fifth grapefruit would be ____.
C) If the price were 40 cents, her consumer surplus would be ____.

Accepted Answer

A) $2.60
B...

Question 14

Statement I: As we consume more and more of a product, our marginal utility declines. Statement II: A person's marginal utility can never be negative.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) A) and D)
F) None of the above

Question 15

Use the following table to answer the question : Table 3: Demand and Utility Schedules for packs of scented candles 
-The additional utility from her purchase of a third scented candle would be

Accepted Answer

A)  $4.
B)  $5.
C)  $6.
D)  $15.
E)  $21.F) A) and E)
G) C) and E)

Question 16

Given the information in the table below, find the marginal utility and the total utility.

Accepted Answer

The answer of Given the information in the table below,...

Question 17

Marginal utility is the ______________.

Accepted Answer

additional utility derived from consuming one more unit of some good or service

Question 18

Use the following table to answer the question : Table 2 :Demand and Utility Schedules for Packs of Star Wars Trading Cards 
-If the price was $8, her consumer surplus would be

Accepted Answer

A)  $27.
B)  $19.
C)  $8.
D)  $3.
E)  None of the choices are correct.F) A) and B)
G) A) and C)

Question 19

Statement I: A person's marginal utility schedule can be derived from her demand schedule. Statement II: If you purchased six dance lessons, the total utility you derived from the six lessons would be greater than the total utility you would have derived from five lessons.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) A) and B)
F) A) and D)

Question 20

If your marginal utility becomes negative, your total utility ____________.

Accepted Answer

The answer of If your marginal utility becomes negative, your...

Exam 7: Theory of Consumer Behavior

We will keep buying digital music downloads from the Internet until the marginal utility of the music downloads

Correct AnswerverifiedShow Answer

If Rachel bought too many hot dogs, her marginal utility would become negative and her total utility would

Correct AnswerverifiedShow Answer

If your marginal utility from your last session with your personal trainer is equal to the price they charged you, then

Correct AnswerverifiedShow Answer

Jason's cooking is so terrible that Melissa says she will have to be paid in order to even try it. Thus, her marginal utility for Jason's cooking is

Correct AnswerverifiedShow Answer

The one exception to the rule that you are not getting ripped off if you pay a very high price for a good or service is if there is ___________.

Correct AnswerverifiedShow Answer

As people buy more of the same product,

Correct AnswerverifiedShow Answer

If water became very scarce and diamonds became very plentiful

Correct AnswerverifiedShow Answer

A product's utility

Correct AnswerverifiedD

When marginal utility is zero, total utility

Correct AnswerverifiedB

Which statement is false?

Correct AnswerverifiedShow Answer

Use the following table to answer the question : Table 2 :Demand and Utility Schedules for Packs of Star Wars Trading Cards -Her marginal utility of her fifth pack of trading cards would be

Correct AnswerverifiedShow Answer

Total utility is at a ___________ when marginal utility is zero.

Correct AnswerverifiedShow Answer

Karen O'Brien has the demand schedule for grapefruit shown in the table below. A) Her total utility for four grapefruits would be ____. B) Her marginal utility from the fifth grapefruit would be ____. C) If the price were 40 cents, her consumer surplus would be ____.

Correct AnswerverifiedA) $2.60B...View AnswerShow Answer

Statement I: As we consume more and more of a product, our marginal utility declines. Statement II: A person's marginal utility can never be negative.

Correct AnswerverifiedShow Answer

Use the following table to answer the question : Table 3: Demand and Utility Schedules for packs of scented candles -The additional utility from her purchase of a third scented candle would be

Correct AnswerverifiedShow Answer

Given the information in the table below, find the marginal utility and the total utility.

Correct AnswerverifiedShow Answer

Marginal utility is the ______________.

Correct Answerverifiedadditional utility derived from consuming one more unit of some good or service

Use the following table to answer the question : Table 2 :Demand and Utility Schedules for Packs of Star Wars Trading Cards -If the price was $8, her consumer surplus would be

Correct AnswerverifiedShow Answer

Statement I: A person's marginal utility schedule can be derived from her demand schedule. Statement II: If you purchased six dance lessons, the total utility you derived from the six lessons would be greater than the total utility you would have derived from five lessons.

Correct AnswerverifiedShow Answer

If your marginal utility becomes negative, your total utility ____________.

Correct AnswerverifiedShow Answer

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B

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Karen O'Brien has the demand schedule for grapefruit shown in the table below. A) Her total utility for four grapefruits would be . B) Her marginal utility from the fifth grapefruit would be . C) If the price were 40 cents, her consumer surplus would be .

Correct Answer
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A) $2.60
B...
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additional utility derived from consuming one more unit of some good or service

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