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Final

Economics 1021A/B Study Guide - Final Guide: Pearson Education, Utility, Kilogram


Department
Economics
Course Code
ECON 1021A/B
Professor
Jeannie Gillmore
Study Guide
Final

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Parkin/Bade, Economics: Canada in the Global Environment, 8e
Chapter 8 Utility and Demand
8.1 Consumption Choices
1) The change in total utility that results from a one-unit increase in the quantity of a good
consumed is
A) additional utility.
B) marginal utility.
C) average utility.
D) marginal utility per dollar.
E) fractional utility.
Answer: B
Type: MC
Topic: Consumption Choices
2) Utility is
A) the value of a good.
B) the additional satisfaction received from consuming another unit of a good.
C) the benefit or satisfaction from consuming goods and services.
D) the practical usefulness of a good.
E) equal to the price of a good.
Answer: C
Diff: 1 Type: MC
Topic: Consumption Choices
3) Diminishing marginal utility means that
A) Ralph will enjoy his second hamburger less than the first one.
B) the utility from one hamburger is greater than the utility from two hamburgers.
C) the price of two hamburgers is less than twice the price of one.
D) the utility from eating two hamburgers will be more than twice the utility from eating the first
one.
E) hamburgers seem smaller as you eat more of them.
Answer: A
Diff: 1 Type: MC
Topic: Consumption Choices
4) As more of a good is consumed its
A) marginal utility increases.
B) marginal utility decreases.
C) marginal utility remains unchanged.
D) total utility decreases.
E) total utility increases at an increasing rate.
Answer: B
Diff: 1 Type: MC
Topic: Consumption Choices
Copyright © 2013 Pearson Canada Inc. 98
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Parkin/Bade, Economics: Canada in the Global Environment, 8e
5) What is marginal utility?
A) The change in total utility divided by the price of a good.
B) The maximum amount of satisfaction from consuming a good.
C) The total satisfaction received from consuming as much of the good that is available for
consumption.
D) The additional satisfaction received from consuming one more unit of a good.
E) The change in the price of a good divided by the change in total utility.
Answer: D
Diff: 1 Type: MC
Topic: Consumption Choices
6) John likes to eat apples, oranges, and pears. If John increases his consumption of oranges,
ceteris paribus, marginal utility theory tell us that John's marginal utility of
A) oranges decreases.
B) apples decreases.
C) pears decreases.
D) oranges remains constant.
E) oranges, apples, and pears all decrease.
Answer: A
Diff: 2 Type: MC
Topic: Consumption Choices
7) The fact that your fourth slice of pizza does not generate as much satisfaction as your third
slice is an example of
A) consumer surplus.
B) diminishing total utility.
C) diminishing marginal utility.
D) the paradox of value.
E) the law of demand.
Answer: C
Diff: 2 Type: MC
Topic: Consumption Choices
Copyright © 2013 Pearson Canada Inc. 99
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Parkin/Bade, Economics: Canada in the Global Environment, 8e
Use the table below to answer the following questions.
Table 8.1.1
8) Refer to Table 8.1.1. The value of B is
A) 30.
B) 47.
C) 42.
D) 18.
E) 0.
Answer: B
Diff: 2 Type: MC
Topic: Consumption Choices
9) Refer to Table 8.1.1. The value of C is
A) 0.
B) 13.
C) 17.
D) 50.
E) 3.
Answer: E
Diff: 3 Type: MC
Topic: Consumption Choices
10) Total utility is always
A) greater than marginal utility.
B) less than marginal utility.
C) decreasing when marginal utility is decreasing.
D) decreasing when marginal utility is increasing.
E) increasing when marginal utility is positive.
Answer: E
Diff: 2 Type: MC
Topic: Consumption Choices
Source: Study Guide
Copyright © 2013 Pearson Canada Inc. 100
find more resources at oneclass.com
find more resources at oneclass.com
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