Utility: The Measure of Consumer Satisfaction

Posted on May 14, 2024 in Economy

Utility: The Measure of Consumer Satisfaction

A measure of the relative levels of satisfaction that consumers enjoy from the consumption of goods and services is called

Utility Theory

     2.   Utility theory seeks to measure

Purchasing Decisions

     3.   American consumers make thousands of purchasing decisions each year. These decisions

Statements About Utility

     5.   Which of the following statements is true about utility?

     6.   Which of the following statements is true about utility?

     7.   Which of the following statements is true about utility?

Expectations of Firms, Laborers, and Consumers

     8.   Economists expect the firm to maximize ________, the laborer to accept the best ________, and the consumer to find the combination of goods that gives the most ________.

Marginal Utility

   12.   Marginal utility

   13.   The additional satisfaction derived from consuming one more unit of a good or service is called

   16.   The marginal utility experienced from consuming the third taco is

   17.   The marginal utility experienced from consuming the sixth taco is

   18.   The marginal utility experienced from consuming the seventh taco is

   19.   Total utility is negative

   20.   Marginal utility is negative

   21.   This consumer experiences diminishing marginal utility

   22.   The marginal utility of the third unit is

   23.   The marginal utility of the fifth unit is

   24.   The marginal utility of the eighth unit is

   25.   Marginal utility is negative

   26.   This consumer experiences diminishing marginal utility

   27.   Total utility after the second cupcake is

   28.   Marginal utility is negative

   29.   Total utility is highest at the ________ cupcake.

   30.   This consumer experiences diminishing marginal utility

   31.   When given the marginal utility of the first five units of a product, we can calculate the total utility by

   32.   Diminishing marginal utility

   33.   When marginal utility declines as consumption increases, the consumer is experiencing

   34.   Individuals who haven’t studied economics may not understand how all-you-can-eat buffets manage to make money. This can be explained by the concept of ________, which makes each trip to the buffet line less satisfactory than the previous one.

   35.   In July 2012, it cost $125 to purchase a ticket to visit the parks at Disneyland for one day. A five-day pass to the same parks cost only $290. Disneyland charges less for the additional days because of

   36.   A company in Irvine, California, is interested in buying season tickets to the local baseball team. Tickets for scheduled games are sold individually for $12 each, but season tickets are only $4 each. The reason why the local baseball team has to charge less for season tickets can be explained by

   37.   Cell phone companies rely on the ________ of conversation to make unlimited night and weekend minutes on cell phone plans profitable.

   38.   The consumer optimum

   39.   The combination of goods and services that maximizes utility for a given income is called

   40.   Maximizing utility

   41.   To maximize one’s satisfaction when deciding between two goods

   42.   The old saying “getting the biggest bang for your buck” means that

   43.   Which of the following statements is always true when determining the consumer optimum?

   49.   The combination of Good X and Good Y that will maximize your utility will have which of the following properties?

   50.   Assume that strawberries cost $1 and apples cost $2. Which of the following combinations of strawberries and apples satisfies the following rule

   51.   Assume that strawberries cost $1 and apples cost $2. If a consumer has $8, the bundle of goods that would maximize her utility per dollar and remain within her budget would be

   52.   Assume that strawberries cost $1 and apples cost $2. If a consumer has $16, the bundle of goods that would maximize his utility per dollar and remain within his budget would be

   53.   Assume that strawberries cost $1 and apples cost $2. If the consumer has $8, the bundle of goods that would maximize his utility per dollar leads to a utility equal to ________ utils.

   54.   Assume that strawberries cost $1 and apples cost $2. If the consumer has $16, the bundle of goods that would maximize her utility per dollar leads to a utility equal to ________ utils.

   55.   If the purchase of 5 strawberries and 5 apples maximizes your utility per dollar, the price of strawberries must be ________ if the price of apples is $3.00.

   56.   Assume that chips cost $1 and soda costs $2.Which of the following combinations of chips and soda satisfies the rule ?

   57.   Assume that chips cost $1 and soda costs $2. If the consumer has $7, the combination of goods that would maximize her utility per dollar and remain within her budget would be

   58.   Assume that chips cost $1 and soda costs $2. If the consumer has $14, the combination of goods that would maximize his utility per dollar and remain within his budget would be

   59.   Assume that chips cost $1 and soda costs $2. If the consumer has $7, the combination of goods that would maximize her utility per dollar leads to a utility equal to ________ utils.

   60.   Assume that chips cost $1 and soda costs $2. If the consumer has $14, the combination of goods that would maximize his utility per dollar leads to a utility equal to ________ utils.

   61.   For 2 chips and 5 sodas to be a combination of goods that maximizes someone’s utility per dollar, the price of chips must be ________ if the price of soda is $1.00.