SOLVED

11) Marginal utility can be A) negative. B) zero. C) positive. D) positive, negative or zero. 12) Which of the following is likely to occur as the result of the law of diminishing marginal utility? A) Petra’s utility from her second apple was less than her satisfaction from her first orange. B) Hudson enjoyed his second slice of pizza more than his first. C) Sabine’s utility from her first granola bar is greater than Rachel’s utility from her second granola bar. D) Wesley enjoyed his second bottle of iced tea less than his first bottle, other things constant. 13) If, when you consume another piece of candy, your marginal utility is zero, then A) you want more candy. B) you have maximized your total utility from consuming candy. C) you have not yet reached the point of diminishing marginal utility. D) you should consume less candy. 14) Consumers have to make tradeoffs in deciding what to consume because A) not all goods give them the same amount of satisfaction. B) the prices of goods vary. C) they are limited by a budget constraint. D) there are not enough of all goods produced. 15) If your total satisfaction increases when you consume another unit, your marginal utility must be A) increasing. B) decreasing. C) negative. D) positive. 16) If total utility increases at a decreasing rate as a consumer consumes more coffee, then marginal utility must A) remains constant. B) increase also. C) decrease. D) be negative. 17) An item has utility for a consumer if it A) is scarce. B) has a high price. C) is something everyone else wants. D) generates enjoyment or satisfaction. 18) Suppose your marginal utility from consuming the 3rd slice of cake is zero, then your total utility from consuming cake is A) maximized. B) decreasing. C) negative. D) increasing. 19) Consumers maximize total utility within their budget constraint by A) buying the cheapest goods they can find. B) buying whatever they like the best. C) buying the goods with the largest marginal utility per dollar spent. D) spending the same dollar amount for each good. 20) If a consumer always buys goods rationally, then A) the total utilities of the different goods consumed will be equal. B) the average utilities of the different goods consumed will be equal. C) the marginal utility per dollar spent on all goods will be equal. D) the marginal utility of the different goods consumed will be equal. Â Â Â Â