Quiz 9 of ECON251 Purdue University In Tutorial Library

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TITLE: Quiz 9 of ECON251 Purdue University

UNIVERSITY / INSTITUTE: Purdue University

CLASS / COURSE: Economics

QUESTION DESCRIPTION:

Quiz 9:
 
1.
(Points: 1)
If, as a person consumes more and more of a good, each additional unit adds less
satisfaction than the previous unit consumed, we are seeing the working of the law of:
a. a. demand.
b. b. supply.
c. c. increasing opportunity cost.
d. d. diminishing marginal utility.
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2.
(Points: 1)
If a consumer always buys goods rationally, then:
a. a. the total utilities of the different goods consumed will be equal.
b. b. the average utilities of the different goods consumed will be equal.
c. c. the marginal utility per dollar spent on all goods will be equal.
d. d. the marginal utility of the different goods consumed will be equal.
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3.
(Points: 1)
As a consumer consumes more and more of a good or service in a particular time
period, eventually marginal utility:
a. a. rises.
b. b. is constant.
c. c. declines.
d. d. fluctuates.
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4.
(Points: 1)
If a consumer is obtaining nine units of utility per dollar spent on apples and six units of
utility per dollar spent on oranges, then the consumer:
a. a. is maximizing total utility.
b. b. wants to buy more apples and less oranges.
c. c. wants to buy more oranges and less apples.
d. d. wants to buy less oranges and less apples.
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5.
(Points: 1)
If a consumer is purchasing good X at $5 and gets 25 units of marginal utility from the
last unit and good Y at $3 and gets 12 units of marginal utility from the last unit, the
consumer:
a. a. is maximizing total utility and does not want to change their consumption
of good X or good Y.
b. b. wants to consume more of good X and less of good Y.
c. c. wants to consume more of good Y and less of good X.
d. d. wants to consume less of both good X and good Y.
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6.
(Points: 1)
If a consumer receives 20 units of utility from consuming two units of a good and for
consuming three units this consumer receives 25 units of utility, the marginal utility of
consuming the third unit is:
a. a. 45 utility units.
b. b. 25 utility units.
c. c. 20 utility units.
d. d. 5 utility units.
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7.
(Points: 1)
When marginal utility is zero, total utility is:
a. a. maximized.
b. b. decreasing.
c. c. negative.
d. d. increasing.
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8.
(Points: 1)
Marginal utility is:
a. a. the total satisfaction received from consuming a good or service.
b. b. the average satisfaction received from consuming a good or service.
c. c. the extra satisfaction received from consuming one unit of a good
or service.
d. d. none of these describes marginal utility.
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9.
(Points: 1)
Utility is:
a. a. easily measured in units called utils.
b. b. subjective and cannot be measured.
c. c. the consumption of a natural monopoly good like electricity or natural
gas.
d. d. the production of a natural monopoly good like electricity or natural gas.
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10.
(Points: 1)
If a consumer is utility maximizing and the price of one good falls, what has happened
to the marginal utility divided by the price of the good and what should the consumer
do?
a. a. MU/P has increased and the consumer should buy more of this
good.
b. b. MU/P has increased and the consumer should buy less of this good.
c. c. MU/P has decreased and the consumer should buy more of this good.
d. d. MU/P has decreased and the consumer should buy less of this good.
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SUBJECTS / CATEGORIES:
1. Business Economics
2. Economics
3. Microeconomics

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