The amount by which total utility increases when an additional unit of a good is consumed is called ________ utility.
a)average
b)additional
c)maximum
d)marginal
When total utility is at a maximum, marginal utility is
a)rising
b)at its average value
c)at a maximum
d)zero
The principle of diminishing marginal utility
a)refers to the tendency of total utility to increase until an individual's budget is no longer constrained .
b)refers to the tendency of marginal utility to decline beyond some level of consumption during a period.
c)indicates that, if a good is inferior, less of it will be purchased when income falls during a period.
d)assumes all goods are normal.
If a consumer purchases a combination of commodities X and Y such that MUX/PX = 20 and MUY/PY = 5, to maximize utility, the consumers should buy
a)more of X and less of Y
b)less of X and less of Y
c)more of both
d)less of both
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