The progress of studies
Section 3
1- The word "utility" means
a) quantity demanded. c) demand.
b) benefit or satisfaction. d) goal.
2- The benefit that John gets from eating an additional grape is called the
a) quantity demanded. c) demand.
b) total utility. d) marginal utility.
3- Marginal utility is the change in total utility that results from
a) an increase in the consumer's income.
b) a one-unit change in the quantity of a good consumed.
c) a decrease in the price of the good.
d) an increase in the price of the good.
4- If the total utility of 2 bags of chips is 25, the total utility of 3 bags is 33, and the total utility of 4 bags is 40 units, then the marginal utility of the 3rd and 4th bags are
a) 12.5 and 11, respectively.
b) 8 and 7, respectively.
c) 11 and 10, respectively.
d) 33 and 40, respectively.
5- Diminishing marginal utility means that an increase in the consumption of a good leads to
a) an increase in marginal utility.
b) an increase in the consumer's budget.
c) a decrease in marginal utility.
d) a decrease in total utility.
6- State whether the following statements are true or false. Justify your answer.
a) Total utility of X decreases as we increase consumption of X. False
b) Marginal utility represents total utility divided by the quantity consumed. False
c) If Total utility increases from 100 to 110 as I increase my consumption of X by 1 unit then MU must be 10.True
7- The table above gives Matt's utility from consuming slices of pizza. His marginal utility from the 3rd slice is
a) 9 units. c) 11 units.
b) 5 units. d) 27 units.
8- The table above gives Matt's utility from consuming slices of pizza. His marginal utility from the 4th slice is
a) 30 units. c) 7.5 units.
b) 23.5 units. d) 3 units.
9- The table above gives Matt's utility from consuming slices of pizza. As Matt consumes more slices of pizza, he
a) obtains less total utility.
b) has diminishing total
1- The word "utility" means
a) quantity demanded. c) demand.
b) benefit or satisfaction. d) goal.
2- The benefit that John gets from eating an additional grape is called the
a) quantity demanded. c) demand.
b) total utility. d) marginal utility.
3- Marginal utility is the change in total utility that results from
a) an increase in the consumer's income.
b) a one-unit change in the quantity of a good consumed.
c) a decrease in the price of the good.
d) an increase in the price of the good.
4- If the total utility of 2 bags of chips is 25, the total utility of 3 bags is 33, and the total utility of 4 bags is 40 units, then the marginal utility of the 3rd and 4th bags are
a) 12.5 and 11, respectively.
b) 8 and 7, respectively.
c) 11 and 10, respectively.
d) 33 and 40, respectively.
5- Diminishing marginal utility means that an increase in the consumption of a good leads to
a) an increase in marginal utility.
b) an increase in the consumer's budget.
c) a decrease in marginal utility.
d) a decrease in total utility.
6- State whether the following statements are true or false. Justify your answer.
a) Total utility of X decreases as we increase consumption of X. False
b) Marginal utility represents total utility divided by the quantity consumed. False
c) If Total utility increases from 100 to 110 as I increase my consumption of X by 1 unit then MU must be 10.True
7- The table above gives Matt's utility from consuming slices of pizza. His marginal utility from the 3rd slice is
a) 9 units. c) 11 units.
b) 5 units. d) 27 units.
8- The table above gives Matt's utility from consuming slices of pizza. His marginal utility from the 4th slice is
a) 30 units. c) 7.5 units.
b) 23.5 units. d) 3 units.
9- The table above gives Matt's utility from consuming slices of pizza. As Matt consumes more slices of pizza, he
a) obtains less total utility.
b) has diminishing total