Chapter Review Questions
- What is the difference between total utility and marginal utility?
A. Total utility is the average of both variable and marginal utility
B. Total utility describes the total satisfaction of a product while marginal utility describes the additional
satisfaction gained from a product
C. Marginal utility describes the total satisfaction while total utility describes the additional satisfaction gained
from a product
D. Marginal and total utility have the same meaning
E. Total utility is not used when gauging overall satisfaction or use of a product - What is created by making a choice?
A. Choices create costs and opportunity costs only
B. Choices create costs and benefits
C. Choices create monetary costs only
D. Choices create monetary benefits only
E. None of the above - What type of relationship exists between price and quantity demanded on a demand curve?
A. Positive relationship
B. No relationship
C. Inverse relationship
D. Variable relationship
E. Fixed relationship - Which of the following is NOT a factor that helps consumers make choices
A. External preferences
B. Prices
C. Tastes and preferences
D. Rational behavior
E. Consumers’ budget - What impact will a surplus have on the quantity and price of goods?
A. Quantity will rise and price will rise
B. Quantity will fall and price will fall
C. Quantity will rise and price will fall
D. A surplus has no impact on quantity and price of a good
E. Surpluses will cause quantity and prices to act independent of each other
Part III: Microeconomics