Economics Study Set 4

Economists assume that the goal of consumers is to

Utility is

Marginal utility is the

As a consumer consumes more and more of a product in a particular time period,eventually marginal utility

If a consumer receives 22 units of marginal utility for consuming the first can of soda,20 units from consuming the second,and 15 from the third,the total utility of consuming the three units is

If a consumer receives 20 units of utility from consuming two candy bars,and 25 units of utility from consuming three candy bars,the marginal utility of the third candy bar is

If a consumer receives 20 units of utility from consuming two candy bars,and 25 units of utility from consuming three candy bars,the marginal utility of the second candy bar is

Total utility

If,as a person consumes more and more of a good,each additional unit adds less satisfaction than the previous unit consumed,we are seeing the workings of

The law of diminishing marginal utility states that

Marginal utility can be

Which of the following is likely to occur as the result of the law of diminishing marginal utility?

If,when you consume another piece of candy,your marginal utility is zero,then

Consumers have to make tradeoffs in deciding what to consume because

If your total satisfaction increases when you consume another unit,your marginal utility must be

If total utility increases at a decreasing rate as a consumer consumes more coffee,then marginal utility must

An item has utility for a consumer if it

Suppose your marginal utility from consuming the 3rd slice of cake is zero,then your total utility from consuming cake is

Consumers maximize total utility within their budget constraint by

If a consumer always buys goods rationally,then