10. The price ratio of the two products is the: A. Marginal rate of substitution B. Slope of the budget line C?

[starling]

Microeconomics
1. Marginal utility can be:
A. positive, but not negative.
B. positive or negative, but not zero.
C. positive, negative, or zero.
D. decreasing, but not negative.

2. Marginal utility is the:
A. sensitivity of consumer purchases of a good to changes in the price of that good.
B. change in total utility obtained by consuming one more unit of a good.
C. change in total utility obtained by consuming another unit of a good divided by the change in the price of that good.
D. total utility associated with the consumption of a certain number of units of a good divided by the number of units consumed.

3. The total utility of a product is calculated by:
A. Summing the marginal utility from the first unit of a product that is consumed and the last unit of a product that is consumed
B. Multiplying the marginal utility of a unit of the product consumed times the average quantity consumed
C. Summing the marginal utilities for each successive unit of the product that is consumed
D. Multiplying price times quantity and dividing by the marginal utility

4. Which is a dimension or assumption of the marginal-utility theory of consumer behavior?
A. The consumer has a large income
B. Goods and services carry a price tag
C. The consumer engages in irrational behavior
D. Goods and services yield continually increasing amounts of marginal utility as the consumer buys more of them
Answer: B

5. A consumer with a fixed income will maximize utility when each good is purchased in amounts such that the:
A. Total utility is the same for each good
B. Marginal utility of each good is maximized
C. Marginal utility per dollar spent is the same for all goods
D. Marginal utility per dollar spent is maximized for each good

6. A downward sloping demand curve can be derived for a normal product by decreasing its price in the consumer-behavior model and noting:
A. The increase in the utility-maximizing quantity of that product demanded
B. The decrease in the utility-maximizing quantity of that product demanded
C. A substitution effect that encourages less consumption of that product
D. An income effect that encourages less consumption of that product

7. A consumer's demand curve for a product is downsloping because:
A. total utility falls below marginal utility as more of a product is consumed.
B. marginal utility diminishes as more of a product is consumed.
C. time becomes less valuable as more of a product is consumed.
D. the income and substitution effects precisely offset each other.

8. A product has utility if it:
A. takes more and more resources to produce successive units of it.
B. violates the law of demand.
C. satisfies consumer wants.
D. is useful.

9. Suppose that Steve heads to the local hamburger shop with $3, expecting to spend $2 for his favorite burger and $1 for French fries. When he gets there he discovers that his favorite burger is on sale for $1, so he buys two burgers and one order of French fries. Steve’s consumption behavior is best explained by:
A. the income effect.
B. the substitution effect.
C. diminishing marginal utility.
D. increasing marginal utility.

10. The price ratio of the two products is the:
A. Marginal rate of substitution
B. Slope of the budget line
C. Point of tangency for equilibrium
D. Elasticity of demand for the two products

[seme22]

1. C
2. B
3.A
4.B
5.C
6.A
7.B
8.C
9.A
10A

[giulio]

1. C
2. B
3. A
4. B
5. ?
6. A
7. B
8. C
9 .A
10 A