40. The concept of utility is: A) objective so that psychologists can m easure u

ID: 1181388 • Letter: 4

Question

40. The concept of utility is:

A) objective so that psychologists can measure utility and compare one person's utility with that of another person.

B) subjective so there can be no true measurement of someone's utility.

C) objective so that devices can be developed that would measure a person's utility

D) subjective so measurement of someone's utility must be done scientifically.

41. If Cy purchases more than one gallon of gas, then his consumer surplus is:

A) the difference between what he would be willing to pay and what he does pay.

B) the sum of what he is willing to pay and what he does pay.

C) what he does pay minus what he is willing to pay.

D) value of the last gallon purchased.

42. Marginal utility analysis is unrelated to the demand curve.

A) True

B) False

43. If Charlotte takes one and one is enough, then:

A) total utility is greater than marginal utility.

B) total utility is less than marginal utility.

C) marginal utility is equal to total utility.

D) marginal utility is negative.

44. Suppose the MU/P for bottled water is greater than the MU/P for chips. To maximize total utility, the consumer should buy:

A) more bags of chips and less bottled water.

B) more bottled water and fewer bags of chips.

C) more of both goods.

D) less of both goods.

C) objective so that devices can be developed that would measure a person's utility

B) the sum of what he is willing to pay and what he does pay.

A) total utility is greater than marginal utility.

C) more of both goods.

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