The law of diminishing marginal utility implies it is possible that the marginal utility of my tenth pistachio nut is less than the marginal utility of my third pistachio nut, other things constant.
a. True
b. False
QUESTION 2Marginal utility is a measure
a. of total utility derived from consuming a given amount of a good
b. of the total utility gained from consuming an extra unit of a good
c. computed by dividing total utility by the amount of a good consumed
d. determined by production conditions in a market
e. of the cost associated with consuming one more unit of a good
QUESTION 3Marginal utility is the
a. overall satisfaction obtained from consuming a good
b. additional satisfaction obtained from consuming one more unit of a good
c. average satisfaction obtained from consuming a good
d. the change in satisfaction obtained from consuming 1 percent more of a good
e. additional cost of one more unit of a good
QUESTION 4Utility is determined by an individual's
a. income
b. price
c. relative price
d. profit
e. tastes and preferences
QUESTION 5Economists assume people's tastes are
a. determined solely by advertising
b. relatively stable over time
c. quite variable
d. irrelevant to utility analysis
e. identical
QUESTION 6Utility is
a. the sense of pleasure or satisfaction derived from consuming goods and services
b. the cost of acquiring goods and services
c. the profit consumers earn from consuming goods and services
d. the monetary value to consumers of goods and services
e. the desire to consume goods and services
QUESTION 7Marginal utility can be objectively measured and compared from one individual to another.
a. True
b. False
QUESTION 8Different people may have different tastes, but their tastes do not change over time.
a. True
b. False
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