**Rational economic agents would resist consuming any good where: Question 1 opt
ID: 1238010 • Letter: #
Question
**Rational economic agents would resist consuming any good where:Question 1 options:
the marginal utility of that good was negative since this would make you worse off.
the marginal utility of that good was positive since this would make you worse off.
the total utility of that good was falling since this would make you worse off.
both A and C.
both B and C.
**Question 2 (1 point)
Question 2 Unsaved
The market price people are willing to pay for a unit of a particular commodity is determined by:
Question 2 options:
total utility.
average utility.
the sum of average and marginal utility.
marginal utility.
**Question 3 (1 point)
Question 3 Unsaved
As people consume more and more of a particular good or service, we can predict that:
Question 3 options:
the marginal utility of each additional good consumed will rise and total utility will increase, but
more slowly than before.
the marginal utility of each additional good consumed will fall and total utility will increase, but
more rapidly than before.
the marginal utility of each additional good consumed will rise and total utility will increase, but
more rapidly than before.
the marginal utility of each additional good consumed will fall and total utility will increase, but
more slowly than before.
**Question 4 (1 point)
Question 4 Unsaved
Why is the price of diamonds usually so much higher than the price of water even though people cannot
survive long without water?
Question 4 options:
This is an unsolved mystery.
A price change affects the purchasing power of an individual's available income.
Marginal utility, not total utility, determines how much a person is willing to pay for a good.
There are no good substitutes for diamonds while there are good substitutes for water.
**Question 5 (1 point)
Question 5 Unsaved
The campus pizzeria sells a large pizza for $14. When you buy a second large pizza, however, its price is only $10. How does this relate to marginal utility?
Question 5 options:
The cost of large pizzas become cheaper as more are consumed.
As more is consumed, the marginal utility increases.
Marginal utility is the additional satisfaction from additional units of the good.
Increases in total utility from the consumption of large pizzas become larger the more is consumed.
**Question 6 (1 point)
Question 6 Unsaved
Advocates of behavioral economics
Question 6 options:
argue that utility theory is explained by applying the assumption of bounded rationality.
argue that consumers make decisions that leave them worse off.
argue that utility theory is explained by facts.
argue that people don't behave rationally.
**Question 7 (1 point)
Question 7 Unsaved
What is the difference between total utility and marginal utility?
Question 7 options:
Marginal utility represents the consumer optimum while total utility gives the total utility per dollar spent on the last unit.
Marginal utility is subject to the law of diminishing marginal utility while total utility is not.
Total utility is the total amount of satisfaction derived from consuming a certain amount of a good while marginal utility is the additional satisfaction gained from consuming an additional unit of the good.
Total utility represents the consumer optimum while marginal utility gives the total utility per dollar spent on the last unit.
**Question 8 (1 point)
Question 8 Unsaved
What is the substitution effect of a price change on the quantity demanded of a good or service?
Question 8 options:
The same as the water-diamond paradox.
A price change induces people to substitute among goods.
A price change affects the purchasing power of an individual's available income.
A price change leads to the consumer increasing consumption due to the law of diminishing marginal returns.
**Question 9 (1 point)
Question 9 Unsaved
In economics, another term for satisfaction is
Question 9 options:
1)
income elasticity.
2)
price elasticity.
3)
utility.
4)
marginal productivity.
Explanation / Answer
the marginal utility of that good was negative since this would make you worse off.
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