Economics 201 Consumer Behavior
Chapter 07 Consumer Behavior
Multiple Choice Questions 1. Utility:
A. is synonymous with usefulness.
B. is want-satisfying power.
C. is easy to quantify.
D. rarely varies from person to person.
2. Marginal utility can be:
A. positive, but not negative.
B. positive or negative, but not zero.
C. positive, negative, or zero.
D. decreasing, but not negative. 4. The ability of a good or service to satisfy wants is called:
A. utility maximization.
B. opportunity cost.
C. revenue potential.
D. utility.
9. The above data illustrate the:
A. law of comparative advantage.
B. utility-maximizing rule.
C. law of diminishing marginal utility.
D. law of increasing opportunity costs.
10. Refer to above data. Marginal utility becomes negative beginning with the:
A. first unit.
B. second unit.
C. third unit.
D. fourth unit.
11. A product has utility if it:
A. takes more and more resources to produce successive units of it.
B. violates the law of demand.
C. satisfies consumer wants.
D. is useful.
12. The law of diminishing marginal utility states that:
A. total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed.
B. beyond some point additional units of a product will yield less and less extra satisfaction to a consumer.
C. price must be lowered to induce firms to supply more of a product.
D. it will take larger and larger amounts of resources beyond some point to produce successive units of a product.
13. The first Pepsi yields Craig 18 units of utility and the second yields him an additional 12 units of utility. His total utility from three Pepsis is 38 units of utility. The marginal utility of the third Pepsi is:
A. 26 units of utility.
B. 6 units of utility.
C. 8 units of utility.
D. 38 units of utility.
14. If the price of product X rises, then the resulting decline in the amount purchased will:
A. necessarily increase the
Multiple Choice Questions 1. Utility:
A. is synonymous with usefulness.
B. is want-satisfying power.
C. is easy to quantify.
D. rarely varies from person to person.
2. Marginal utility can be:
A. positive, but not negative.
B. positive or negative, but not zero.
C. positive, negative, or zero.
D. decreasing, but not negative. 4. The ability of a good or service to satisfy wants is called:
A. utility maximization.
B. opportunity cost.
C. revenue potential.
D. utility.
9. The above data illustrate the:
A. law of comparative advantage.
B. utility-maximizing rule.
C. law of diminishing marginal utility.
D. law of increasing opportunity costs.
10. Refer to above data. Marginal utility becomes negative beginning with the:
A. first unit.
B. second unit.
C. third unit.
D. fourth unit.
11. A product has utility if it:
A. takes more and more resources to produce successive units of it.
B. violates the law of demand.
C. satisfies consumer wants.
D. is useful.
12. The law of diminishing marginal utility states that:
A. total utility is maximized when consumers obtain the same amount of utility per unit of each product consumed.
B. beyond some point additional units of a product will yield less and less extra satisfaction to a consumer.
C. price must be lowered to induce firms to supply more of a product.
D. it will take larger and larger amounts of resources beyond some point to produce successive units of a product.
13. The first Pepsi yields Craig 18 units of utility and the second yields him an additional 12 units of utility. His total utility from three Pepsis is 38 units of utility. The marginal utility of the third Pepsi is:
A. 26 units of utility.
B. 6 units of utility.
C. 8 units of utility.
D. 38 units of utility.
14. If the price of product X rises, then the resulting decline in the amount purchased will:
A. necessarily increase the