Microeconomics 2023 Final Exam
Ch. 10 Correct Answers. Ch. 10
Utility is Correct Answers. subjective and difficult to measure.
If, as a person consumes more and more of a good, each additional unit adds less satisfation than the
previous unit consumed, we are seeing the workings of Correct Answers. the law of diminishing
marginal utility.
Consumers have to make tradeoffs in deciding what to consume because Correct Answers. they are
limited by a budget constraint
Suppose your marginal utility from consuming the 3rd slice of cake is zero, then your total utility from
consuming cake is Correct Answers. maximized
If a consumer always buys goods rationally, then Correct Answers. the marginal utility per dollar spent
on all goods will be equal.
If Valerie purchases ankle socks at $5 and gets 25 units of marginal utility from the last unit, and
bandanas at $3 and gets 12 units of marginal utility from the last bandana purchased, she Correct
Answers. wants to consume more ankle socks and fewer bandanas.
The income effect of an increase in the price of salmon Correct Answers. refers to the effect on a
consumer's purchasing power which causes the consumer to buy less salmon, holding all other factors
constant.
Consider a downward-sloping demand curve. When the price of a normal good increases, the income
and substitution Correct Answers. work in the same direction to decrease quantity demanded.
Consider a downward-sloping demand curve. When the price of a normal good decreases, the income
and substitution effects Correct Answers. work in the same direction to increase quantity demanded.
The satisfaction a person receives from consuming goods and services is called Correct Answers. utility.
The economic model of consumer behavior predicts that Correct Answers. consumers will choose to
buy the combination of goods and services that make them as well off as possible from those
combinations that their budgets allow them to buy.
The additional utility that George receives from consuming one more slice of pizza is called Correct
Answers. marginal utility.
, Marginal utility is Correct Answers. the change in total utility a person receives from consuming an
additional unit of a good or service.
If marginal utility of apples is diminishing and is a positive amount, consuming one more apple will cause
Correct Answers. a consumer's total utility to increase.
Optimal decisions are made Correct Answers. at the margin.
Total utility is maximized in the consumption of two goods by Correct Answers. equating the marginal
utility per dollar for each good consumed.
Ch. 11 Correct Answers. Ch. 11
A firm has successfully adopted a positive technological change when Correct Answers. it can produce
more output using the same inputs.
Which of the following is an example of positive technological change? Correct Answers. A firm's
workers participate in a training program designed to increase the number of surf boards they can
produce per day.
The basic activity of a firm is Correct Answers. to use inputs to produce outputs of goods and services.
When a firm experiences a positive technological change Correct Answers. the firm is able to produce
more output using the same inputs, or the same output using fewer inputs.
A characteristic of the long run is Correct Answers. all inputs can be varied.
Which of the following are implicit costs for a typical firm? Correct Answers. opportunity costs of capital
owned and used by the firm
The marginal product of labor is defined as Correct Answers. the additional output that results when
one more worker is hired, holding all other resources constant.
The law of diminishing marginal returns states Correct Answers. that at some point, adding more of a
variable input to a given amount of a fixed input will cause the marginal product of the variable input to
decline.
Diminishing marginal product of labor occurs when adding another unit of labor Correct Answers.
changes output by an amount smaller than the output added by the previous unit of labor.
If marginal product is greater than average product, then Correct Answers. marginal product could
either be increasing or decreasing.
Which of the following costs will not change as output changes? Correct Answers. total fixed cost
Ch. 10 Correct Answers. Ch. 10
Utility is Correct Answers. subjective and difficult to measure.
If, as a person consumes more and more of a good, each additional unit adds less satisfation than the
previous unit consumed, we are seeing the workings of Correct Answers. the law of diminishing
marginal utility.
Consumers have to make tradeoffs in deciding what to consume because Correct Answers. they are
limited by a budget constraint
Suppose your marginal utility from consuming the 3rd slice of cake is zero, then your total utility from
consuming cake is Correct Answers. maximized
If a consumer always buys goods rationally, then Correct Answers. the marginal utility per dollar spent
on all goods will be equal.
If Valerie purchases ankle socks at $5 and gets 25 units of marginal utility from the last unit, and
bandanas at $3 and gets 12 units of marginal utility from the last bandana purchased, she Correct
Answers. wants to consume more ankle socks and fewer bandanas.
The income effect of an increase in the price of salmon Correct Answers. refers to the effect on a
consumer's purchasing power which causes the consumer to buy less salmon, holding all other factors
constant.
Consider a downward-sloping demand curve. When the price of a normal good increases, the income
and substitution Correct Answers. work in the same direction to decrease quantity demanded.
Consider a downward-sloping demand curve. When the price of a normal good decreases, the income
and substitution effects Correct Answers. work in the same direction to increase quantity demanded.
The satisfaction a person receives from consuming goods and services is called Correct Answers. utility.
The economic model of consumer behavior predicts that Correct Answers. consumers will choose to
buy the combination of goods and services that make them as well off as possible from those
combinations that their budgets allow them to buy.
The additional utility that George receives from consuming one more slice of pizza is called Correct
Answers. marginal utility.
, Marginal utility is Correct Answers. the change in total utility a person receives from consuming an
additional unit of a good or service.
If marginal utility of apples is diminishing and is a positive amount, consuming one more apple will cause
Correct Answers. a consumer's total utility to increase.
Optimal decisions are made Correct Answers. at the margin.
Total utility is maximized in the consumption of two goods by Correct Answers. equating the marginal
utility per dollar for each good consumed.
Ch. 11 Correct Answers. Ch. 11
A firm has successfully adopted a positive technological change when Correct Answers. it can produce
more output using the same inputs.
Which of the following is an example of positive technological change? Correct Answers. A firm's
workers participate in a training program designed to increase the number of surf boards they can
produce per day.
The basic activity of a firm is Correct Answers. to use inputs to produce outputs of goods and services.
When a firm experiences a positive technological change Correct Answers. the firm is able to produce
more output using the same inputs, or the same output using fewer inputs.
A characteristic of the long run is Correct Answers. all inputs can be varied.
Which of the following are implicit costs for a typical firm? Correct Answers. opportunity costs of capital
owned and used by the firm
The marginal product of labor is defined as Correct Answers. the additional output that results when
one more worker is hired, holding all other resources constant.
The law of diminishing marginal returns states Correct Answers. that at some point, adding more of a
variable input to a given amount of a fixed input will cause the marginal product of the variable input to
decline.
Diminishing marginal product of labor occurs when adding another unit of labor Correct Answers.
changes output by an amount smaller than the output added by the previous unit of labor.
If marginal product is greater than average product, then Correct Answers. marginal product could
either be increasing or decreasing.
Which of the following costs will not change as output changes? Correct Answers. total fixed cost
