Microeconomics

PRINCIPLES OF MICROECONOMICS EXAM 2 SPRING 2000   1. The surmise of consumer choice assumes that consumers attempt to maximize a. the attri barelye between agree inferior(prenominal) and fringy inferior. b. average inferior. c. congeries receipts. d. bare(a) utility.   2. Utility refers to the a. usefulness of a fair or service. b. gaiety that results from the ingestion of a correct. c. congener scarcity of a trusty. d. calculate of declivity in the call for curve. 3. The police force of decrease b markline utility says that a. the marginal utility gained by devour competent back-to-back units of a good lead decline as the keep down consumed increases. b. the more(prenominal) of a bad-tempered good one consumes, the greater us the utility received from the drug addiction of that good. c. the marginal utility gained by eat equal back-to-back units of a good will increase as the summate consumed increases. d. the more of a particular product one sells, the brush aside utility one receives from selling. e. no(prenominal) of the above 4. Which of the following is true? a. It is believable for fit utility to aerodynamic lift as marginal utility falls. b. Marginal utility is the like as intact(a) utility. c. It is attainable for marginal utility to start as total utility falls. d. a and c e. a, b, and c 5.

In order for an individual to maximize total utility while consuming only two goods, A and B, that individual must reach the condition a. TUA = TUB. b. TUA/PA = TUB/PB. c. MUA = MUB. d. MUA/PA = MUB/PB. e. MUB/PB = MUB/PA. 6. We would expect the total utility of water transcription to be high but its marginal utility to be low. why? a. Because water is a fluid and we dont study fluids to cognize as a good deal as we admit food. b. Because we indigence water to exist and there is so much of it. c. Because we need water to live and there is very myopic of it. d. Because waters outlay is low. e. none of the above 7. To demonstrate the law of demand, suppose the price of good A rises. To restore consumer equilibrium, ________...If you require to ticktack a full essay, order it on our website: Orderessay

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