(A) Must be linear.
(B) Cannot have a negative slope.
(C) Is a curve that shows all the combinations of inputs that yield the same
total output?
(D) Is a curve that shows the maximum total output as a function of the level of labor
input?
Category: Economics Mcqs
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The rate at which one input can be reduced per additional unit of the other input, while holding output constant, is measured by the:
(A) Marginal rate of substitution.
(B) Marginal rate of technical substitution.
(C) Slope of the isocost curve.
(D) Average product of the input.
According to the utility model of consumer demand, the law of diminishing marginal utility indicates that the demand curve is:
(A) Vertical
(B) U-shaped
(C) Upward-sloping
(D) Downward-sloping
Consumers will maximize satisfaction when:
(A) The price of each good is exactly equal to the price of every other good
consumed.
(B) The price of each good is exactly equal to the total utility derived from the
consumption of every other good.
(C) The marginal utility of the last dollar spent on each good is exactly equal
to the marginal utility of the last dollar spent on any other good.
(D) Marginal utility is equal to average utility.
__ is the extra value that consumers receive above what they pay for that good.
(A) Producer surplus
(B) Utility
(C) Marginal utility
(D) Consumer surplus
If you sum all of the marginal utilities for the consumption of units one through five, you will get:
(A) The marginal utility for the consumption of the fifth unit.
(B) The marginal utility for the consumption of the sixth unit.
(C) The total utility for the consumption of the first five units.
(D) The average utility for the consumption of the first five units.
As more of a good is consumed, then total utility typically:
(A) Increases at a decreasing rate.
(B) Decreases as long as marginal utility is negative.
(C) Decreases as long as marginal utility is positive.
(D) Is negative as long as marginal utility is decreasing.
Marginal utility is best described as __.
(A) The additional satisfaction gained by consumption of the last good
(B) The per unit satisfaction of the good consumed
(C) The total satisfaction gained from the total consumption of the good
(D) The change in satisfaction from consuming one additional unit of the
good