Question : 53) The word “util” has been used by economists in : 1387693

53) The word “util” has been used by economists in the past as an objective measure of utility. Today economists believe that

A) utility cannot be measured objectively.

B) utility can be measured objectively because people can use prices of different goods to measure utility.

C) all of the important conclusions of the economic model of consumer behavior depend on utility being measured objectively.

D) the util truly is an objective, rather than a subjective, measure of utility.

54) Suppose the marginal utilities for the first three cans of soda are 100, 80 and 60, respectively. The total utility received from consuming 2 cans is

A) 20.

B) 80.

C) 90.

D) 180.

55) The additional utility that George receives from consuming one more slice of pizza is called

A) average utility.

B) marginal utility.

C) total utility.

D) diminishing utility.

56) Marginal utility is

A) the change in total utility divided by the price of the last unit of a good or service consumed.

B) the change in total utility a person receives from consuming an additional unit of a good or service.

C) the utility from consuming a given quantity of a good or service.

D) the decrease in total utility from consuming more and more units of a good or service.

57) If marginal utility of apples is diminishing and is a positive amount, consuming one more apple will cause

A) total utility to decrease.

B) a consumer to get no satisfaction from consuming apples.

C) a consumer’s total utility to increase.

D) a consumer to go beyond her optimal consumption of apples.

58) If Paul decides to buy a $60 ticket to a Cirque du Soleil show rather than a $45 ticket for a Blue Man Group performance, we can conclude that

A) the marginal utility per dollar spent on Cirque du Soleil is lower than the marginal utility per dollar spent on Blue Man Group.

B) Paul’s demand for a ticket to see Cirque du Soleil is more elastic than his demand for a ticket to see Blue Man Group.

C) Paul is not making a rational choice.

D) the marginal utility per dollar spent on Cirque du Soleil is higher than the marginal utility per dollar spent on Blue Man Group.

59) If the marginal utility Ida Mae receives from eating chicken wings is negative, then

A) her total utility from eating chicken wings has fallen.

B) her total utility from eating chicken wings is negative as well.

C) Ida Mae definitely does not like chicken wings.

D) her total utility has risen, but by less from the last chicken wing than from the next to last chicken wing.

60) If Joey Kobayashi experiences diminishing marginal utility from eating hot dogs, then

A) his total utility from eating hot dogs is negative.

B) the marginal utility from the next hot dog Joey eats will be negative.

C) the additional satisfaction he receives from eating another hot dog will be less than the satisfaction he received from his eating his last hot dog.

D) Joey is maximizing the marginal utility per dollar he receives from eating hot dogs.

61) Optimal decisions are made

A) in the marketplace.

B) if information about prices and marginal utilities is known.

C) when marginal utility is minimized.

D) at the margin.

62) Total utility is maximized in the consumption of two goods by

A) equating the marginal utility for each good consumed.

B) equating the marginal utility per dollar for each good consumed.

C) equating the total utility of each good divided by its price.

D) maximizing expenditure on each good.