1. In a market economy consumers purchases depends in their: a.Costs and what th
ID: 1202618 • Letter: 1
Question
1. In a market economy consumers purchases depends in their: a.Costs and what they can change. b.Production decisions. c.Income, taxes, and market prices. d.Expenses, supply, and level of activity. e.Past outlook and state of technology 2.Utility is a measure of: a.Output. b.Usefulness. c.Satisfaction. d.Indifference. e.Demand. 3.The additional satisfaction received from consuming an additional unit of a commodity is called the: a.Marginal product. b.Quotient of satisfaction. c.Marginal propensity of consume. d.Elasticity of demand. e.Marginal utility. 4.The law of diminishing marginal utility implies that: a.As people consume more and more goods their happiness diminishes. b.A person’s satisfaction declines as more and more of a particular good is consumed c.A person’s satisfaction rises indefinitely as additional units of a commodity are consumed d.Increases in a person’s satisfaction will eventually decline as more and more units of a commodity are consumed. e.As a person’s income rises, consumption of all commodities falls. 5.A consumer buying food and clothing is in equilibrium when: a.The marginal utilities of food and clothing equal the total utilities of food and clothing b.The marginal utility of the last dollar spent on food equals the marginal utility of the last dollar spent on clothing. c.The marginal utility of both goods are the same d.The marginal utilities of both goods are the greatest. e.The marginal of food equals the price of food and the marginal utility of clothing equals the price of clothing
Explanation / Answer
1. c.Income, taxes, and market prices.
2. c.Satisfaction
3. e.Marginal utility.
4. b.A person’s satisfaction declines as more and more of a particular good is consumed
5. c.The marginal utility of both goods are the same
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