PRINCIPLES OF MICROECONOMICS EXAM 2 SPRING 2000 Â 1. The theory of consumer choice assumes that consumers contract to maximize a. the distinction between agree inferior(prenominal) and marginal public-service corporation. b. second-rate inferior. c. congeries utility. d. marginal utility. Â 2. Utility refers to the a. usefulness of a second-rate or service. b. satisfaction that results from the ingestion of a good. c. relative scarcity of a good. d. rate of declivity in the demand curve. 3. The honor of decrease marginal utility says that a. the marginal utility gained by devour equal back-to-back units of a good forget decline as the keep down consumed enlarges. b. the more of a particular good one consumes, the greater us the utility received from the consumption of that good. c. the marginal utility gained by consume equal successive units of a good will increase as the amount consumed increases. d. the more of a particular mer chandise one sells, the slight utility one receives from selling. e. none of the to a higher place 4. Which of the following is true? a. It is thinkable for total utility to switch off as marginal utility falls. b. Marginal utility is the comparable as total utility. c. It is attainable for marginal utility to forward motion as total utility falls. d. a and c e. a, b, and c 5.
In order for an private to maximize total utility while consuming only two goods, A and B, that individual must fulfill the condition a. TUAÂ = TUB. b. TUA/PAÂ = TUB/PB. c. MUAÂ = MUB. d. MUA/PAÂ = MUB/PB. e. MUB/PBÂ = MUB/PA . 6. We would expect the total utility of! water schema to be high but its marginal utility to be low. why? a. Because water is a fluid and we dont study fluids to live as lots as we pick up food. b. Because we indigence water to live and there is so much of it. c. Because we need water to live and there is very subaltern of it. d. Because waters price is low. e. none of the above 7. To found the law of demand, suppose the price of good A rises. To restitute consumer equilibrium, ________...If you want to ticktack a full essay, order it on our website: OrderCustomPaper.com
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