FIRST AND LAST NAME:
1) Suppose that Homer derives 45 utils of total utility from eating 4 donuts and 55 utils of total utility
from eating 5 donuts. What is Homer’s marginal utility from eating the 5th donut?
2) Marginal utility is measured as
3) If total utility is decreasing, then marginal utility is
4) The total utility from consuming 8 units of a good is 155. The marginal utility of the 8th unit is 7 and
the marginal utility of the 7th unit is 11. The total utility from consuming 6 units of the good is
5) A well-known athlete loves cupcakes. He receives 200 utils for the first cupcake, an additional 160
for the second, an additional 120 for the third, another 80 for the fourth, and another 40 for the fifth.
The marginal utility of the fourth cupcake is ________ and the total utility of consuming four cupcakes
6) Using the above table, what is the total utility of the third piece of pizza?
7) For good A and good B, the consumer maximizes personal satisfaction when
8) The price of good “a” is $5 and the price of good “b” is $15. If the marginal utility of good “a” is 20
then the marginal utility of good “b” must be ________ to have an optimum combination of goods
9) When the marginal utility per dollar of good x exceeds the marginal utility per dollar of good y,
10) If a consumer is initially at an optimum, and then the price of Y falls, then
11) An indifference curve provides the set of consumption alternatives that
12) A curve where every combination of the two goods being considered yields the same level of
satisfaction is known as
13) In a map showing three indifference curves a consumer is most well off on
14) An indifference map shows
15) Refer to the above figure. Which point represents the highest level of utility?
16) Refer to the above figure. Which point(s) represents the lowest level of utility?
17) The possible combinations of goods that can be purchased with a specific income are called the
18) Suppose that the quantity of good y is measured along the vertical axis and that the
quantity of good x is measured along the horizontal axis. If the price of good x is $5 and
the price of good y is $10 when income is $200 per time period, the slope of the consumer’s
budget constraint will be
19) Using the above figure, we can conclude that
20) In the above figure, if the budget line is the line DF, the consumer will maximize utility at point
21) Suppose that one worker can produce 15 cookies, two workers can produce 35 cookies
together, and three workers can produce 65 cookies together. What is the marginal
product of the 2nd worker?
22) Changes in production functions are associated with changes in
23) When El Torito Restaurant is deciding how many waiters to hire for a holiday
weekend, it is making a ________ decision.
24) In the long run, a firm can change
25) If marginal product is negative, then
26) Marginal physical product of the first worker is 100, 120 for the second, 80 for the
third, 30 for the fourth, 5 for the fifth, 3 for the sixth, 2 for the seventh, 1 for the eighth,
and 0 for the ninth. What is total product for the fifth worker and the ninth worker
27) In the above table, average physical product is 30 snowboards when
28) In the above table, how many workers are employed when marginal product reaches its
29) Any activity that results in the conversion of resources into products that can be used in
30) The relationship Q = f(K, L) is an example of a
31) Using the above table, the total product and average physical product when 3 workers
are employed are
32) Using the above table, the total product and average physical product when 5 workers
are employed are
33) Using the above table, the average physical product and marginal physical w hen 4
workers are employed are
34) Refer to the above figure. The curve reflects
35) Which of the following is correct?
36) Suppose that a firm is currently producing 1,000 units of output. At this level of
output, AVC is $1 per unit, and TFC is $500. What is the firm’s TC?
37) Suppose that a firm is currently producing 500 units of output.
At this level of output, TVC = $1,000 and TFC = $2,500. What is the firms ATC?
38) Suppose that when the level of output for the firm increases from 100 to 110 units, its
variable costs increase from $500 to $700. What is the firm’s marginal cost?
39) Which one of the following statements is FALSE?
40/ We are in the short run. When output is 100 units, the firm’s total fixed cost is $500.
What will this firm’s total fixed cost be if output doubles to 200 units?
41) Refer to the above table. At an output of 4 units, average variable costs are
42) Refer to the above table. At an output of 3 units, average variable costs are
43) Refer to the above table. At an output of 2 units, average total costs are
44) In the above figure, if this firm produces output level Q2, it has average variable costs
45) In the above figure, if this firm produces output level Q2, it has average total costs of
46) Refer to the above table. What are total fixed costs at an output of 2 units?
47) Refer to the above table. What are total variable costs at an output of 2 units?
48/ When the price of shirts emblazoned with a college logo is $10, consumers buy 150 per week. When the price declines to $9, consumers purchase 200 per week. Based on this information, calculate the price elasticity of demand for logo-emblazoned shirts.
49/ In a local market, the monthly price of Internet access service decreases from $20 to $10, and the total quantity of monthly accounts across all Internet access providers
increases from 100,000to 200,000. What is the price elasticity of demand? Is demand elastic, unit-elastic, or inelastic?50/The Short run price elasticity of demand for tires is 0.9. If an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quantity of tires demanded to change?