Multiple Choice:
1. The increase in total utility that one receives from eating an additional piece of sushi is called
a. Marginal utility.
b. Interpersonal utility.
c. Marginal cost.
d. Average utility.
e. Average cost.
2. Marginal utility is
a. The total satisfaction derived from consuming all goods.
b. Always the total satisfaction derived from consuming the first unit of a good.
c. Always positive.
d. Always negative.
e. The change in total satisfaction derived from consuming one more unit of a particular good.
3. As one eats more and more oranges
a. His total utility falls, but the marginal utility of each orange rises.
b. His marginal utility rises as long as the total utility derived from the oranges remains positive.
c. His total utility rises, as does the marginal utility of each orange.
d. His total utility rises as long as the marginal utility of the oranges is positive, but the marginal utility of each additional orange likely falls.
4. The marginal utility from a hot fudge sundae
a. Is always increasing.
b. Is always greater than the average utility derived from all hot fudge sundaes consumed.
c. Generally depends on how many hot fudge sundaes the consumer has already consumed.
d. Is always equal to the price paid for the hot fudge sundae.
5. Total utility will decline when
a. Marginal utility is falling.
b. Marginal utility is rising.
c. Marginal utility equals zero.
d. Marginal utility is constant.
e. Marginal utility is negative.
6. When total utility is at its maximum
a. Marginal utility is negative.
b. Marginal utility is positive.
c. Marginal utility is at its maximum.
d. Marginal utility equals zero.
e. Marginal utility stops decreasing and starts increasing.
7. The total utility from consuming five slices of pizza is 11, 18, 24, 29, and 32 utils, respectively. The marginal utility of the third slice of pizza is
a. 11.
b. 7.
c. 18.
d. 6.
e. 53.
8. The total utility from consuming five sushi rolls is 12, 23, 33, 42, and 45 utils, respectively. Marginal utility begins to diminish after consuming the ____________ sushi roll.
a. First
b. Second
c. Third
d. Fourth
e. None of the above are correct; marginal utility does not diminish.