Can08L1


  • 1
  • The satisfaction that a person receives from consuming a good or service is called ______________.

    total utility
    marginal utility
    marginal benefit
    utility


  • 2
  • Marginal utility theory assumes that when Sally consumes more of a good that she likes, her _________________.

    total utility increases
    income increases
    marginal utility increases
    total utility is maximized


  • 3
  • Mark's marginal utility from reading books is the _______ when he reads ____________ .

    total utility he gets; one more book
    consumer surplus he gets; books
    change in his total utility; more books
    change in his total utility; one additional book


  • 4
  • As you consume more and more of any good, you experience ___________________ utility.

    diminishing marginal
    diminishing total
    increasing marginal
    negative marginal


  • 5
  • With a given income and prices of goods, Marcus will be in a consumer equilibrium if ______________________.

    his marginal utility from all goods is the same
    he purchases the same amounts of all goods
    he saves some of his income for the future
    he maximizes his total utility


  • 6
  • The marginal utility per dollar spent is equal to the ______________ consumed divided by the price of the good.

    marginal utility from all units
    average utility from the units
    total utility from all units
    marginal utility from the last unit


  • 7
  • Liane maximizes her total utility when she allocates all of her available income such that the marginal utility per dollar spent on each good _________.

    is increasing
    is diminishing
    is maximized
    is the same


  • 8
  • The relationship between total quantity demanded and the price is called the _________ demand.

    total
    equilibrium
    market
    marginal


  • 9
  • The market demand curve for CDs is the _______ of all the individual demand curves for CDs.

    sum
    horizontal sum
    horizontal product
    vertical sum


  • 10
  • Marginal utility theory shows us that a rare gem which we value highly has a _______marginal utility and a _______ total utility.

    small; small
    large; small
    small; large
    large; large


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