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6. The law of diminishing marginal utility can be stated as follows: a. as the amount of a good consumed increases, the sum of satisfaction received tends to decrease. b. as the amount of a good consumed increases, the additional satisfaction gained from consuming additional units tends to decrease c. as the amount of a good consumed decreases, the additional satisfaction gained from consuming additional units tends to increase. d. as the amount of a good consumed increases, the sum of satisfaction received tends to increase but at a diminishing rate e. b and d

6. The law of diminishing marginal utility can be stated as follows: a. as the amount of a good consumed increases, the sum of satisfaction received tends to decrease. b. as the amount of a good consumed increases, the additional satisfaction gained from consuming additional units tends to decrease c. as the amount of a good consumed decreases, the additional satisfaction gained from consuming additional units tends to increase. d. as the amount of a good consumed increases, the sum of satisfaction received tends to increase but at a diminishing rate e. b and d

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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6. The law of diminishing marginal utility can be stated as follows: a. as the amount of a good consumed increases, the sum of satisfaction received tends to decrease. b. as the amount of a good consumed increases, the additional satisfaction gained from consuming additional units tends to decrease c. as the amount of a good consumed decreases, the additional satisfaction gained from consuming additional units tends to increase. d. as the amount of a good consumed increases, the sum of satisfaction received tends to increase but at a diminishing rate e. b and d Figure 1: a M I3 I2 R b 7. Refer to Figure 3.1. I1, I2, and I3 are indifference curves and Line ab is the relevant budget constraint. The equilibrium position for the consumer is at a. any point on the budget constraint. b. Point M c. Point J d. Point T e. Point R 2 8. Refer to Figure 1. I2 and I3 are indifference curves and Line ab is the relevant budget constraint. If the consumer is initially at Point R, he should a. strive for Point N by obtaining a larger money income. b. purchase more of X and less of Y. c. remain at that point in order to maximize utility. d. purchase more of Y and less of X. e. none of the above 9. Refer to Figure 1. I1, I2, and constraint. Point N is a. the consumer's equilibrium position b. unattainable are indifference curves and Line ab is the relevant budget c. inferior to every other labeled point on the diagram. d. attainable, but does not exhaust the consumer's income 10. The budget constraints cuts the horizontal axis at 12 units of good X and it cuts the vertical axis at 20 units of good Y. If the price of good X is $20 and the price of good Y is $12, then what does income equal a. $200. (b) $240 (c) $520 (d) $280 (e) there is not enough info to answer it
Transcribed Image Text:6. The law of diminishing marginal utility can be stated as follows: a. as the amount of a good consumed increases, the sum of satisfaction received tends to decrease. b. as the amount of a good consumed increases, the additional satisfaction gained from consuming additional units tends to decrease c. as the amount of a good consumed decreases, the additional satisfaction gained from consuming additional units tends to increase. d. as the amount of a good consumed increases, the sum of satisfaction received tends to increase but at a diminishing rate e. b and d Figure 1: a M I3 I2 R b 7. Refer to Figure 3.1. I1, I2, and I3 are indifference curves and Line ab is the relevant budget constraint. The equilibrium position for the consumer is at a. any point on the budget constraint. b. Point M c. Point J d. Point T e. Point R 2 8. Refer to Figure 1. I2 and I3 are indifference curves and Line ab is the relevant budget constraint. If the consumer is initially at Point R, he should a. strive for Point N by obtaining a larger money income. b. purchase more of X and less of Y. c. remain at that point in order to maximize utility. d. purchase more of Y and less of X. e. none of the above 9. Refer to Figure 1. I1, I2, and constraint. Point N is a. the consumer's equilibrium position b. unattainable are indifference curves and Line ab is the relevant budget c. inferior to every other labeled point on the diagram. d. attainable, but does not exhaust the consumer's income 10. The budget constraints cuts the horizontal axis at 12 units of good X and it cuts the vertical axis at 20 units of good Y. If the price of good X is $20 and the price of good Y is $12, then what does income equal a. $200. (b) $240 (c) $520 (d) $280 (e) there is not enough info to answer it
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