Microeconomics

PRINCIPLES OF MICROECONOMICS EXAM 2 SPRING 2000   1. The theory of consumer choice assumes that consumers exploit to maximize a. the distinction between agree inferior(prenominal) and marginal service. b. mediocreish returns. c. congeries utility. d. marginal utility.   2. Utility refers to the a. usefulness of a fair or service. b. satisfaction that results from the ingestion of a good. c. relative scarceness of a good. d. rate of declivity in the demand curve. 3. The honor of decrease marginal utility says that a. the marginal utility gained by devour equal back-to-back units of a good depart decline as the keep down consumed cast ups. b. the more of a particular good one consumes, the greater us the utility received from the consumption of that good. c. the marginal utility gained by overwhelming equal successive units of a good will increase as the amount consumed increases. d. the more of a particular production one sells, th e slight utility one receives from selling. e. none of the above 4. Which of the following is true? a. It is thinkable for total utility to mounting as marginal utility falls. b. Marginal utility is the comparable as total utility. c. It is attainable for marginal utility to hoist as total utility falls. d. a and c e. a, b, and c 5.

In order for an somebody to maximize total utility while consuming only two goods, A and B, that individual must fulfill the condition a. TUA = TUB. b. TUA/PA = TUB/PB. c. MUA = MUB. d. MUA/PA = MUB/PB. e. MUB/PB = MUB/PA. 6. We would expect the total ut ility of water agreement to be high but its! marginal utility to be low. why? a. Because water is a fluid and we dont study fluids to live as more than as we lease food. b. Because we indigence water to live and there is so much of it. c. Because we need water to live and there is very teeny of it. d. Because waters price is low. e. none of the above 7. To institute the law of demand, suppose the price of good A rises. To get consumer equilibrium, ________...If you want to ticktack a full essay, order it on our website: BestEssayCheap.com

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