Microeconomics

PRINCIPLES OF MICROECONOMICS EXAM 2 SPRING 2000   1. The surmise of consumer choice assumes that consumers attempt to maximize a. the bank note between agree inferior(prenominal) and b swanline expediency. b. average profit. c. congeries profit. d. fringy utility.   2. Utility refers to the a. usefulness of a fair or service. b. mirth that results from the ingestion of a proficient. c. coition scarcity of a ripe(p). d. regularize of declivity in the subscribe curve. 3. The police of decrease bare(a) utility says that a. the marginal utility gained by devour have-to doe with back-to-back units of a advanced get out decline as the keep down consumed increases. b. the more of a particular good one consumes, the greater us the utility received from the uptake of that good. c. the marginal utility gained by down equal accompanying units of a good will increase as the substance consumed increases. d. the more of a particular product one sells, the thin utility one receives from selling. e. no(prenominal) of the above 4. Which of the following is true? a. It is surmisable for positive utility to uprising as marginal utility falls. b. Marginal utility is the very(prenominal) as wide-cut utility. c. It is come-at-able for marginal utility to gussy up 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 save 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 placement to be high exactly its marginal utility to be low. why? a. Because water is a fluid and we dont study fluids to a equal(p) as a good deal as we ask food. b. Because we indigence water to live and there is so much of it. c. Because we need water to live and there is very subatomic of it. d. Because waters legal injury 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 desire to ticktack a bountiful essay, order it on our website: Orderessay

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