Total utility is maximized when _____.
a. the marginal utility is maximized
b. the marginal utility is the same for all goods consumed
c. the marginal utility per dollar expenditure is maximized
d. the marginal utility per dollar expenditure is the same for all goods consumed
e. any change in purchases from good A to good B reduces marginal satisfaction
QUESTION 2Total costs:
a. Decrease when quantity produced increases.
b. Increase when quantity produced increases.
c. Sometime increase and sometime decrease when quantity produced increases.
d. Can sometimes be constant over a substantial range of output.
QUESTION 3Stocks that offer a guaranteed fixed periodic payment or dividend are known as:
a. common stock.
b. restricted stock.
c. close-ended stock.
d. preferred stock.
e. open-ended stock.
QUESTION 4When the marginal utility derived from a good is negative, total utility is _____.
a. increasing
b. at a minimum
c. equal to zero
d. decreasing
e. at a maximum
QUESTION 5Total variable costs:
a. Increase when quantity produced increases.
b. Decrease when quantity produced increases.
c. Sometime increase and sometime decrease when quantity produced increases.
d. Can sometimes be constant over a substantial range of output.
QUESTION 6The financial capital of a firm includes the:
a. service provided by its accountants.
b. credit cards provided to its top executives.
c. equity and bonds issued by it.
d. loans accepted from banks.
e. computers purchased for its office staff.
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