Question : 13.2   Marginal Utility Theory 1) Utility the A) benefit or satisfaction that : 1241152

13.2   Marginal Utility Theory

1) Utility is the

A) benefit or satisfaction that a person gets from the consumption of a good or service.

B) measure of how useful a resource is in the production process.

C) measure of productivity associated with a good or service.

D) economic term for consumption possibilities.

E) economic term for how changes in price affect a consumer’s purchases.

2) The benefit that John gets from eating an additional grape is called the ________ the grape.

A) net gain from

B) demand for

C) quantity demanded of

D) total utility from

E) marginal utility from

3) As more of a good is consumed, total utility

A) increases.

B) decreases.

C) remains the same.

D) becomes negative and then turns positive.

E) might change but whether or not it changes depends on why more of the good is consumed.

4) If you get 40 units of utility from eating the first bag of pretzels, 30 from the second bag, and 20 from the third bag, the total utility of three bags of pretzels is ________ units of utility.

A) 40

B) 70

C) 90

D) 50

E) 20

5) If a consumer obtains 20 units of utility for the first unit consumed, 10 for the second, and 5 for the third, what is the total utility of consuming three units?

A) 20 units

B) 30 units

C) 35 units

D) 5 units

E) None of the above answers is correct.

6) For Jack, the total utility from three shirts is 50 units and the marginal utility of one more shirt is 5. The total utility of four shirts is

A) 45.

B) 55.

C) 55/4.

D) 55/5.

E) None of the above answers is correct.

7) Marginal utility is equal to which of the following?

A) total income divided by the price of the product

B) the change in total utility from consuming one more unit of a good

C) the satisfaction obtained from consuming any number of units of a good

D) total utility divided by the number of units of the good

E) None of the above answers is correct.

8) Marginal utility is the change in total utility that results from

A) an increase in the price of the good.

B) a change in the budget line.

C) a one-unit change in the quantity of a good consumed.

D) a decrease in the price of the good.

E) an increase in the consumer’s income.

9) 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) 8 and 7, respectively.

B) 12.5 and 11, respectively.

C) 11 and 10, respectively.

D) 58 and 73, respectively.

E) 33 and 40, respectively.

10) If Joan consumes 1 dinner roll, she has total utility of 15; if she consumes 2, she has total utility of 27; if she consumes 3, she has total utility of 37; and if she consumes 4, she has total utility of 45. What is the marginal utility of the fourth dinner roll consumed?

A) 124 units of utility

B) 45 units of utility

C) 11.25 units of utility

D) 8 units of utility

E) 37 units of utility