(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
“Utility” is most closely related to the term:
(A) Useless
(B) Require
(C) Necessary
(D) Satisfaction
The burden of a tax is shifted toward buyers if:
(A) Demand is perfectly elastic.
(B) Demand is relatively more elastic than supply.
(C) Demand is relatively more inelastic than supply.
(D) Demand and supply have equal elasticities.
We know that the demand for a product is elastic if:
(A) When price rises, revenue rises
(B) When price rises, revenue falls
(C) When price rises, quantity demanded rises
(D) When price falls, quantity demanded rises
__ measures the percentage change in demand given a percentage change in consumer’s income.
(A) Price elasticity of demand
(B) Income elasticity of demand
(C) Supply price elasticity
(D) Cross price elasticity
It is calculated as the percentage change in quantity demanded of a given good, with respect to the percentage change in the price of “another”good?
(A) Price elasticity of demand
(B) Income elasticity of demand
(C) Cross price elasticity of demand
(D) Supply price elasticity