The total utility from consuming five donuts is 9, 19, 30, 38, and 45 utils, respectively. Marginal utility begins to diminish after consuming the ____ donut.
a. first
b. second
c. third
d. fourth
QUESTION 2Firms are consumers and households are producers in the _____ market.
a. stock
b. bond
c. labor
d. product
e. underground
QUESTION 3Which of the following is a possible advantage of a free market condition?
a. In a free market, consumers are offered discounts on the purchase of products.
b. In a free market, all goods and services are offered for free to households below the poverty line.
c. In a free market, continuous government intervention helps keep the price of products under control.
d. In a free market, competition among sellers helps the consumers purchase a product at the lowest possible price.
e. In a free market, consumers have limited products to choose from, thereby assuring less confusion and better quality.
QUESTION 4The total utility from consuming five cups of coffee is 15, 27, 37, 46, and 54 utils, respectively. The marginal utility of the fourth cup of coffee is:
a. 48.
b. 54.
c. 9.
d. 6.
QUESTION 5The buyers and sellers in a resource market are:
a. household and firms respectively.
b. banks and farmers respectively.
c. households and land owners respectively.
d. firms and household respectively.
e. exporters and importers respectively.
QUESTION 6Which of the following is likely to cause an outward shift of a production possibility curve?
a. An increase in the price of the commodity represented on the horizontal axis
b. A fall in the cost of producing the commodity represented on the vertical axis
c. An improvement in the available technology
d. A fall in the supply of resources
e. An increase in the supply of unskilled workers
QUESTION 7Total utility:
a. generally diminishes as consumption of a good increases.
b. always increases as consumption increases.
c. increases only as long as marginal utility increases.
d. increases as long as marginal utility is positive.
Quick Reply
