Microeconomics

PRINCIPLES OF MICROECONOMICS

EXAM 2
SPRING 2000
 
1. The theory of consumer choice assumes that consumers attempt to maximize

a. the distinction between agree inferior(prenominal) and marginal utility.
b. average utility.
c. congeries utility.
d. marginal utility.
 

2. Utility refers to the

a. usefulness of a fair 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 law of decrease marginal utility says that

a. the marginal utility gained by devour equal back-to-back units of a good will decline as the keep down consumed increases.
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 consuming equal successive units of a good will increase as the amount consumed increases.
d. the more of a particular product one sells, the slight utility one receives from selling.
e. none of the above

4. Which of the following is true?

a. It is thinkable for total utility to rise as marginal utility falls.
b. Marginal utility is the same as total utility.
c. It is attainable for marginal utility to rise as total utility falls.
d. a and c
e. a, b, and c

5.



In order for an individual to maximize total utility while consuming only two goods, A and B, that individual must fulfill the condition

a. TUA = TUB.
b. TUA/PA = TUB/PB.
c. MUA = MUB.
d. MUA/PA = MUB/PB.
e. MUB/PB = MUB/PA.

6. We would expect the total utility of water system 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 much as we postulate 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 little of it.
d. Because waters price is low.
e. none of the above

7. To demonstrate the law of demand, suppose the price of good A rises. To restore consumer equilibrium, ________...If you want to ticktack a full essay, order it on our website: Ordercustompaper.com



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